OpenAI is reportedly preparing legal action against Apple; it wouldn’t be the first partner to feel burned

OpenAI is exploring legal action against Apple, citing dissatisfaction with the ChatGPT integration into Apple’s operating systems. The company claims the partnership, announced in June 2024, failed to deliver the anticipated subscriber growth, prominence, and billions in revenue. OpenAI executives reportedly feel the integration was downplayed and its features were hard to find.

Bloomberg reports that OpenAI has engaged an external law firm to evaluate its options, which could include a breach-of-contract notice. Any legal steps might be postponed until after OpenAI's ongoing trial with Elon Musk concludes. Apple, on the other hand, reportedly has concerns about OpenAI's privacy standards and its expansion into hardware.

This tension is not new for Apple partners. The iPhone maker has a history of difficult relationships with major software companies, often marginalizing collaborators once they become too established. Past examples include Google Maps, which was replaced by Apple Maps; Adobe Flash, which Apple refused to support on mobile devices; and Spotify, which accused Apple of leveraging its App Store control to disadvantage rivals. The European Commission recently fined Apple for this behavior.

Despite these conflicts, some rifts can be mended for commercial benefit. Google, for instance, is now Apple's AI infrastructure partner, powering Apple Intelligence with its Gemini models after years of intense rivalry. This arrangement highlights the complex and often transactional nature of technology partnerships.

OpenAI itself is no stranger to strained relationships, currently facing a lawsuit from Elon Musk and reportedly navigating tensions with its primary backer, Microsoft, as it seeks greater independence ahead of a potential IPO.