OpenAI explores legal options vs Apple

OpenAI is weighing legal options against Apple after the companies’ ChatGPT partnership failed to produce the prominence and subscriber growth OpenAI expected, according to Bloomberg News and a source cited by U.S. News on May 14. The options under discussion include notifying Apple of a breach of contract without immediately filing a full lawsuit, the source said. (money.usnews.com) Apple did not immediately respond to requests for comment, according to that report. The dispute centers on a deal announced in June 2024 that brought ChatGPT into Siri and other Apple Intelligence features on iPhone, iPad and Mac. (msn.com) ### What exactly is OpenAI said to be considering? Bloomberg reported on May 14 that OpenAI had begun exploring legal action against Apple over the way the Siri integration was handled, and TechCrunch said the report cited people familiar with the matter. (support.apple.com) U.S. News, citing a source familiar with the deliberations, said the options include a breach-of-contract notice rather than an immediate court filing. An outside law firm has been enlisted to work through those options, according to a report summarized by MSN and attributed to Bloomberg. Neither Apple nor OpenAI had publicly announced litigation as of May 15. (money.usnews.com) ### What did Apple and OpenAI agree to in the first place? Apple announced at WWDC on June 10, 2024 that ChatGPT would be integrated into iOS 18, iPadOS 18 and macOS Sequoia as part of Apple Intelligence. Apple said Siri could ask users whether they wanted to send a request to ChatGPT, and OpenAI said users would be able to access ChatGPT capabilities, including image and document understanding, without switching apps. (bloomberg.com) Apple Support now describes ChatGPT as an optional extension inside Apple Intelligence. The support page says Siri can use ChatGPT for more in-depth answers and Writing Tools can use it to create text or images if the feature is enabled. OpenAI’s help documentation separately tells users how to connect ChatGPT to Apple Intelligence and manage those settings. (msn.com) ### Why did the relationship reportedly deteriorate? TechCrunch reported that OpenAI was frustrated because the integration did not deliver the subscribers and prominence it expected. Quartz, citing Bloomberg, said OpenAI had believed the arrangement could eventually generate billions of dollars a year in subscriptions, but that revenue from the deal was running below projections and the integration was hard for users to find. (apple.com) Interesting Engineering reported that tensions also rose as Apple expanded AI partnerships beyond ChatGPT. That report said Apple’s work with other model providers had added strain to the relationship, though Apple had previously said a Gemini arrangement would not replace its OpenAI agreement. (support.apple.com) ### Where does ChatGPT actually appear inside Apple’s software? Apple’s support materials say ChatGPT can be used through Siri and through Writing Tools on supported devices when Apple Intelligence is enabled. OpenAI’s partnership announcement in 2024 also said Apple users would be asked before questions, photos or documents were sent to ChatGPT, and that Siri would present the answer directly. (techcrunch.com) Mashable and other product coverage published after rollout described the integration as available on supported iPhone, iPad and Mac devices through Apple Intelligence features, including Siri and writing assistance. Those reports do not establish contractual obligations, but they match the companies’ public descriptions of where the service appears. (interestingengineering.com) ### Has either company said publicly that a lawsuit is coming? Apple had not publicly confirmed any legal dispute as of May 15, and U.S. News said Apple did not immediately respond to a request for comment on the Bloomberg report. OpenAI also had not publicly announced a lawsuit in the materials surfaced by these reports. (support.apple.com) May 15 is the next immediate checkpoint for public confirmation: any escalation would most likely appear in a company statement, a court filing, or a formal notice between the companies. Apple’s support page for ChatGPT on iPhone and OpenAI’s Apple Intelligence help page both remained available on May 15. (support.apple.com) (money.usnews.com) (sea.mashable.com)