OpenAI threatens Apple legal action

OpenAI is preparing possible legal action against Apple after a two-year partnership around Siri and Apple Intelligence failed to produce the growth and visibility the startup expected, according to Bloomberg News and TechCrunch. Bloomberg reported on May 14 that OpenAI lawyers are working with an outside law firm on options that could be executed soon. (bloomberg.com) The dispute centers on a deal announced in June 2024 that made ChatGPT available inside Siri and other Apple software features. (techcrunch.com) Apple introduced the arrangement at its Worldwide Developers Conference on June 10, 2024, when it unveiled Apple Intelligence for iPhone, iPad and Mac. Apple later described the setup as an optional extension: Siri could hand some requests to ChatGPT, Writing Tools could use ChatGPT to compose text or images, and users could connect either free or paid ChatGPT accounts. (techcrunch.com) OpenAI’s own help page says Siri asks for confirmation before sending many requests to ChatGPT by default. ### What exactly is OpenAI upset about with Apple? Bloomberg reported that OpenAI concluded the Apple tie-up did not deliver the subscriber growth, revenue and product prominence it had expected from access to the iPhone maker’s ecosystem. TechCrunch, citing Bloomberg, said OpenAI believed the integration would bring major new subscriptions and more visible placement across Apple devices, but instead found the feature hard to discover. (bloomberg.com) One OpenAI executive told Bloomberg, as quoted by TechCrunch, that Apple had asked the company to “take a leap of faith and trust us.” The executive added: “It didn’t work out well,” according to TechCrunch’s account of the Bloomberg report. (apple.com) ### How was ChatGPT built into Siri and Apple Intelligence? Apple’s support documentation says Siri can “tap into ChatGPT” for more detailed answers, including questions about photos and documents. The same support page says ChatGPT can also be used inside Writing Tools, Image Playground, visual intelligence and Shortcuts. Users do not need a ChatGPT account to enable the extension, but Apple says paid subscribers can access advanced ChatGPT capabilities more often when signed in. (bloomberg.com) OpenAI’s help center describes the integration as a way to access ChatGPT inside iOS, iPadOS and macOS “without needing to jump between tools.” That page also says users can bypass repeated confirmation prompts by starting a request with “Ask ChatGPT,” though Siri still asks permission before sending a file. (techcrunch.com) ### What legal step is OpenAI considering first? Bloomberg reported that OpenAI is weighing a range of options rather than committing immediately to a full lawsuit. TechCrunch said those options could include sending Apple a formal notice alleging breach of contract without filing a case at the outset. An outside law firm has been enlisted in recent days, according to Bloomberg’s report as cited by multiple outlets. (support.apple.com) Neither Apple nor OpenAI had publicly laid out their positions in the documents reviewed here. ### Why does the timing matter now? TechCrunch reported that any legal move would likely wait until after OpenAI’s ongoing trial with Elon Musk. (help.openai.com) That means the current stage is preparation rather than a filed court fight, based on the reporting available as of May 15. The June 2024 launch date also matters because it sets the age of the relationship now under strain. (bloomberg.com) Bloomberg described the partnership as two years old, and the Apple announcement provides the public starting point for the Siri-ChatGPT arrangement now at issue. ### What should readers watch for next? A formal breach notice from OpenAI to Apple would be the clearest next milestone because TechCrunch reported that such a notice is among the options under review. (moneycontrol.com) A public filing in court, a response from Apple, or new disclosures after OpenAI’s Musk trial would provide the next concrete update on whether the dispute remains a contract fight behind closed doors or moves into litigation. (bloomberg.com) (techcrunch.com)