OpenAI explores legal options against Apple: source
The AI startup fails to see expected benefits from its deal with iPhone maker
[SAN FRANCISCO] Apple’s two-year-old partnership with OpenAI has become strained, with the AI startup failing to see the expected benefits from its deal with the iPhone maker and preparing possible legal action, a person familiar with the matter said on Thursday (May 14).
OpenAI wanted to resolve its issues with Apple without resorting to legal action, but its lawyers are actively working with an outside legal firm on a range of options, the source said. The options include notifying Apple of a breach of contract but not filing a full lawsuit, the source said, confirming a Bloomberg News report on OpenAI’s internal deliberations.
Apple did not immediately respond to requests for comment.
In 2024, Apple announced integration of its “Apple Intelligence” technology across its apps including Siri and bringing OpenAI’s chatbot ChatGPT to its devices.
Their partnership allows users to access ChatGPT results through Siri, while iPhone users can also sign up for ChatGPT memberships directly from the iOS settings menu.
OpenAI believed that the deal would boost ChatGPT subscriptions and lead to deeper integration across Apple apps, but the relationship has deteriorated, the report said, adding that OpenAI’s attempts at renegotiating the deal have stalled.
Bloomberg News reported this month that Apple will allow users to select from third-party AI models and OpenAI could lose its unique role within Apple’s software.
Apple is testing integrations with both Anthropic’s Claude and Google Gemini as part of this push, the report said.
Apple’s embrace of other AI providers is not driving the company’s legal action, the source confirmed, because the partnership was not meant to be exclusive from the start.
SEE ALSO
Google’s Gemini is expected to power Apple’s revamped Siri coming this year. Apple is scheduled to hold its annual software developer conference in June, where it is expected to reveal more details about its AI plans. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
Singapore Kitchen CEO, senior manager charged with alleged fraud, falsifying accounts; both to stay in jobs for now
How the ultra-rich buy property
Profit with purpose: Kim Choo Kueh Chang’s pivot from public listing to protecting heritage
Jardines has survived wars and market collapses. Can it survive the digital age?