OpenAI has hired an outside law firm to prepare legal options against Apple over the ChatGPT integration in Siri, according to reports Thursday. One option under review is a breach-of-contract notice to Apple. The dispute centers on the 2024 Siri arrangement, iPhone ChatGPT signups and Apple's expected iOS 27 opening to rival AI services on June 8.

Key Takeaways

AI-generated summary, reviewed by an editor. More on our AI guidelines.

The 2024 deal carried a revenue bet

Bloomberg first reported the legal review, and Reuters noted that it could not independently verify Bloomberg's account. The wire service added that Apple and OpenAI did not immediately respond to requests for comment.

Apple announced the ChatGPT integration at WWDC in June 2024, putting OpenAI's chatbot inside Siri and later inside Visual Intelligence, Writing Tools and Image Playground. The agreement also let iPhone users buy ChatGPT memberships from the iOS settings menu, with Apple taking a portion of subscription revenue.

OpenAI expected that placement to become a subscription channel. Bloomberg wrote that the company initially believed the deal could generate billions of dollars a year and give ChatGPT deeper placement across Apple apps and Siri.

Users stayed with the standalone app

OpenAI's internal user studies, described to Bloomberg, found that Apple customers were far more likely to use the standalone ChatGPT app than Apple's built-in ChatGPT surfaces. The Siri path often requires users to say or type "ChatGPT" before Apple routes a request to OpenAI.

The Apple interface also constrains the response. Bloomberg described answers appearing in a small window with less information than users get inside ChatGPT's own app. An OpenAI executive quoted by Bloomberg said Apple had not made an "honest effort" to promote the integration.

Apple has its own concerns about OpenAI, including ChatGPT privacy practices, OpenAI's push into devices after buying Jony Ive's hardware startup and the AI company's recruitment of Apple engineers with larger stock packages.

iOS 27 would widen the field

Apple is expected to introduce an iOS 27 Extensions system at WWDC on June 8, with Anthropic's Claude and Google's Gemini among the services Apple is testing. That system would move Siri away from a single ChatGPT fallback and toward a model picker for outside providers.

That shift matches Apple's broader Siri distribution strategy, which treats the assistant as the entry point for multiple AI apps. An OpenAI executive told Bloomberg that Apple's embrace of other providers was not the reason for the legal review because the partnership was not exclusive.

Apple is also paying Google roughly $1 billion a year for AI technology to power the next version of Siri, according to Bloomberg reporting cited in the clipping. OpenAI was considered for that deeper model work but was not interested after the first relationship, Bloomberg reported.

Musk trial comes first

Any formal move against Apple likely would wait until after OpenAI's trial with Elon Musk concludes, Bloomberg reported. The Musk case entered closing arguments Thursday in Oakland, with jury deliberations expected next week, according to Benzinga.

No final decision has been made on the Apple dispute. If OpenAI sends a notice, the document would test whether Apple's 2024 promises created enforceable obligations or left Apple with enough control over product design, placement and promotion to keep ChatGPT in a narrow role.

Frequently Asked Questions

What legal action is OpenAI considering against Apple?

OpenAI is considering options that could include sending Apple a breach-of-contract notice over the ChatGPT Siri integration, according to Bloomberg. No lawsuit has been filed, and no final decision has been made.

Why is OpenAI unhappy with Apple's ChatGPT integration?

OpenAI expected stronger placement across Apple software and more paid ChatGPT signups from iPhone users. Bloomberg reported that users often must invoke ChatGPT directly in Siri and receive constrained responses.

Was the Apple-OpenAI deal exclusive?

Bloomberg reported that the deal was not meant to be exclusive. OpenAI's concern is not Apple's plan to add rivals, but the claim that Apple did not promote the original integration enough.

What is Apple's iOS 27 Extensions system?

The reported iOS 27 Extensions system would let outside AI services work through Siri and related Apple software. Apple is testing Claude and Gemini among the providers, according to the clipping packet.

When could OpenAI move against Apple?

Bloomberg reported that any formal move likely would wait until after OpenAI's trial with Elon Musk concludes. That trial entered closing arguments Thursday in Oakland.

AI-generated summary, reviewed by an editor. More on our AI guidelines.

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Editor-in-Chief and founder of Implicator.ai. Former ARD correspondent and senior broadcast journalist with 10+ years covering tech. Writes daily briefings on policy and market developments. Based in San Francisco. E-mail: [email protected]