TLDR
- OpenAI is preparing possible legal action against Apple, including a potential breach-of-contract notice
- The ChatGPT-Siri integration failed to deliver expected subscribers or revenue for OpenAI
- Apple stock fell as much as 1.2% to $295.38 on Thursday after the news broke
- iOS 27 will open Apple’s ecosystem to rival AI providers including Anthropic’s Claude and Google Gemini
- OpenAI acquired Jony Ive’s hardware startup for ~$6.5B, adding tension as it becomes a potential Apple competitor
The partnership between Apple and OpenAI is unraveling. OpenAI has enlisted an outside law firm to explore legal options, including sending Apple a formal breach-of-contract notice, according to Bloomberg.
OPENAI-APPLE PARTNERSHIP IS HEADING TOWARD A POSSIBLE LEGAL FIGHT
Bloomberg reports OpenAI lawyers are working with an outside firm on legal options against Apple.
That could include a notice alleging breach of contract before any full lawsuit.
OpenAI expected the 2024 ChatGPT… pic.twitter.com/8C37S1o9I9
— Wall St Engine (@wallstengine) May 14, 2026
Apple stock dropped as much as 1.2% to $295.38 on Thursday after the report. The stock had been up around 10% for the year through Wednesday’s close.
The deal, announced at Apple’s WWDC in June 2024, wove ChatGPT into Siri and the iPhone’s Visual Intelligence feature. It also gave iPhone users a direct path to sign up for ChatGPT subscriptions through iOS settings, with Apple taking a cut of revenue.
OpenAI believed the arrangement could eventually generate billions of dollars a year in subscriptions. That hasn’t happened.
Internal research from OpenAI found that iPhone users reach for the standalone ChatGPT app far more often than they use the Siri integration. The integration only surfaces ChatGPT results when a user explicitly says or types the word “ChatGPT,” and even then responses appear in a small, limited window.
“We have done everything from a product perspective,” an unnamed OpenAI executive told Bloomberg. “They have not, and worse, they haven’t even made an honest effort.”
Apple and OpenAI both declined to comment.
Tensions Run Deep
The relationship has frayed on both sides. Apple has had long-running concerns about OpenAI’s approach to user privacy. More recently, Apple executives have been frustrated by OpenAI’s aggressive hiring of engineers from its hardware team, offering packages worth millions more than Apple pays.
OpenAI acquired Jony Ive’s hardware startup for around $6.5 billion, a move that put it on a path to building devices that could compete directly with the iPhone.
Apple also settled a $250 million class action lawsuit earlier this month over alleged false advertising about Siri’s AI features. Some of those features, marketed to consumers in 2024, still haven’t launched.
OpenAI’s attempts to renegotiate the deal have stalled, according to Bloomberg. Any formal legal action is unlikely before OpenAI’s ongoing trial with Elon Musk concludes.
What’s Next for the Deal
Apple is planning to open its ecosystem to multiple AI providers with iOS 27, expected to be previewed at WWDC on June 8. The new system, called Extensions, will let users pick from a range of AI models directly within Siri, including Anthropic’s Claude and Google Gemini.
OpenAI will still be included in that model picker, which could actually improve its visibility on Apple devices compared to the current setup.
Apple is paying Google around $1 billion annually to use Gemini technology to underpin its broader AI efforts. OpenAI was offered a similar role but declined, having lost confidence in the partnership.
Apple’s deal with Google for Gemini was struck late last year. CEO Tim Cook said in February the company chose Google because it believed the technology offered “the most capable foundation” for its AI work.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
