OpenAI May Sue Apple Over Breach of Contract, ChatGPT Maker Reportedly Dissatisfied with Limited Integration, Lack of Revenue
OpenAI is considering legal action against Apple, alleging a breach of contract after its two-year partnership failed to meet subscription goals. Tensions have risen as Apple prepares to integrate rival models from Google and Anthropic into iOS 27. OpenAI executives describe the deal as a failure, citing limited integration and a lack of effective promotion.
OpenAI is reportedly preparing potential legal action against Apple, following a breakdown in the two-year-old partnership between the AI startup and the iPhone maker. According to sources familiar with the matter, OpenAI lawyers are collaborating with an outside legal firm to evaluate options, including a formal notice of breach of contract. The move comes as internal frustrations mount at OpenAI over what executives describe as a lopsided deal that has failed to deliver the expected surge in ChatGPT Plus subscriptions or the deep integration promised within the iOS ecosystem.
Dispute Over Monetisation and Siri Integration
The core of the disagreement appears to centre on the commercial performance of ChatGPT within Apple’s software. When the deal was struck in 2024, OpenAI anticipated that its placement within Siri and the iOS settings menu would generate billions of dollars in recurring revenue. Instead, internal data reportedly shows that the integration has been "financially disappointing," with users finding the features limited and difficult to access without explicitly invoking the "ChatGPT" name. Apple macOS 27 Update: Refined Design, User Interface Improvements Expected Next Month, Says Report.
OpenAI executives have also expressed frustration over Apple’s alleged lack of advertising for the integration. Unlike the multi-billion-dollar deal Apple maintains with Google for search, the OpenAI partnership involved no large direct payments, with both sides instead relying on mutual strategic benefits that OpenAI now claims have not materialised.
Rising Competition and Multi-Model Strategy
Tensions have further escalated as Apple moves to reduce its reliance on a single AI provider. Reports suggest that Apple is currently testing integrations with Anthropic’s Claude and Google’s Gemini for its upcoming iOS 27 system. While OpenAI noted that the partnership was never exclusive, the prospect of losing its unique role within Apple’s software has reportedly stalled renegotiation attempts.
Furthermore, Google’s Gemini is expected to play a primary role in powering a revamped version of Siri scheduled for release later this year. This shift toward a "multi-model" approach by Apple is seen by some at OpenAI as a failure by the iPhone maker to make an "honest effort" to promote ChatGPT over competing services.
Strategic Rivalry Beyond Software
The deteriorating relationship is also being complicated by OpenAI’s broader ambitions. The startup recently acquired a device firm co-founded by former Apple design chief Jony Ive and has aggressively recruited Apple engineers for its own hardware projects. This transition from a software partner to a potential hardware competitor has created a "culture of secrecy" that reportedly left OpenAI in the dark about how its technology would be implemented on the iPhone. iPhone 18 Pro CAD Leaks: Apple To Shrink Dynamic Island and Introduce Dark Cherry Colour Option in Major Design Refinement.
Apple is scheduled to hold its annual Worldwide Developers Conference (WWDC) in June, where it is expected to unveil more details regarding "Apple Intelligence" and its future AI roadmap. While OpenAI still hopes to resolve the issues privately, the active involvement of outside legal counsel suggests the company is prepared for a more formal confrontation if negotiations do not resume.
(The above story first appeared on LatestLY on May 15, 2026 11:41 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
