Cupertino’s apparent lack of significant progress in the AI race was seen as a sign of Apple’s struggles with this new technology, leading them to rely on external partners. In fact, OpenAI and Apple, once promoting a highly positive alliance around ChatGPT on iOS and iPhones, have now reached a rather uncomfortable point. While the integration was presented as a key feature of Apple Intelligence, OpenAI now believes Apple has not implemented it to the required standard within iPhones.
The accusation is serious: it’s not just about a weak integration, but a relationship that has reportedly become so strained that legal actions are being considered. Will the contract ultimately be broken?
OpenAI to Take Legal Action Against Apple, Alleging Sabotage of ChatGPT on iPhones
The crux of the issue lies in how ChatGPT functions within the iPhone. While Apple was expected to integrate it as a core, immersive AI, instead, Apple presented it as an external enhancement for Siri and certain AI tasks in iOS. The idea was that users could turn to OpenAI’s model when Apple’s own system wasn’t sufficient. On paper, this sounded powerful, as ChatGPT would be integrated into the iPhone’s ecosystem, sparing users the need to always open a separate app.
The problem, according to information published by Mark Gurman, is that OpenAI believes Apple has not effectively leveraged this integration. Sam Altman’s company considers the results provided within iOS to be inferior to those obtained by directly using the ChatGPT app from the App Store. This means users receive a more limited, summarized, and less useful experience when accessing ChatGPT through the iPhone’s system.
Naturally, the agreement wasn’t as intended, and it makes little sense for OpenAI to dedicate resources to something Apple seemingly has no intention of implementing at the required level, leading Altman’s company to apparently lose significant revenue.
OpenAI States They Have Fulfilled Their Agreement, Apple Remains Silent
According to reports from Bloomberg, an OpenAI executive stated that they have fulfilled their obligations “from a product perspective,” but Apple has not, and the company “hasn’t even made a good-faith effort.” In simpler terms: OpenAI believes Apple has integrated ChatGPT into the iPhone in a heavily compromised way, which negatively impacts both the product and user perception.
There’s also a financial aspect, which is a primary concern for Altman’s company regarding the deal. OpenAI had anticipated that the iOS integration would generate billions in additional revenue, but the return has reportedly been far less than expected. While the agreement doesn’t involve large direct payments between Apple and OpenAI, beyond the percentage Apple might retain from certain subscriptions made within its ecosystem, the core problem is that OpenAI hasn’t achieved its expected outcomes.
Apple, on the other hand, is reportedly not pleased with Sam Altman’s company either. OpenAI has allegedly hired over 40 engineers from Apple in recent months, including those with expertise in design and hardware. This comes after Apple’s acquisition of Jony Ive’s company, LoveFrom, and with Sam Altman reportedly preparing to launch his own AI-focused device, akin to a smartphone, leading to extremely high tensions.
Therefore, the conflict is no longer solely about ChatGPT on iPhones and alleged sabotage; it’s about who controls the user’s AI experience, who captures the business, and who possesses the talent to build the next groundbreaking device. It appears Apple’s primary aim was to satisfy its users, as they were late to the AI game, but they were unwilling to give ChatGPT too much prominence.
