OpenAI is reportedly preparing possible legal action against Apple as tensions escalate over a partnership that was once expected to become a major force in the artificial intelligence industry.
According to Bloomberg, OpenAI has hired an outside law firm to explore legal options that could include a formal breach of contract notice against Apple. A full lawsuit is not yet certain, but the move signals a serious deterioration in relations between the two companies.
The partnership was first announced in 2024 when Apple integrated ChatGPT into Siri and other parts of its operating system as part of its Apple Intelligence rollout. OpenAI reportedly believed the deal would give ChatGPT massive visibility across hundreds of millions of iPhones and drive large numbers of paid subscriptions.
Instead, OpenAI has reportedly become frustrated with how deeply the service is integrated into Apple’s ecosystem. Company executives believe ChatGPT features were buried inside Apple’s software and failed to receive the level of prominence originally expected. Revenue generated from the partnership also reportedly fell far below projections.
One OpenAI executive reportedly described the situation by saying the company was asked to “take a leap of faith” with Apple but that the arrangement “didn’t work out well.”
Apple also appears to have its own concerns about the relationship. Reports suggest the company is uneasy about OpenAI’s privacy standards and increasingly wary of the AI company’s growing ambitions in hardware. OpenAI has recruited several former Apple executives in recent months, including legendary former design chief Jony Ive, who is now helping lead OpenAI’s hardware push.
The dispute comes as Apple expands its AI partnerships beyond OpenAI. The company has reportedly been testing rival models from Anthropic and Google’s Gemini, potentially reducing ChatGPT’s importance within Apple devices in the future.
Industry analysts say the conflict highlights a recurring pattern in Apple’s relationships with software partners. The company controls one of the world’s most powerful mobile ecosystems, giving it enormous leverage over third party services that depend on the iPhone for growth and distribution.
The reported legal tensions also emerge during a difficult period for Apple’s broader AI strategy. The company recently agreed to pay about $250 million to settle a lawsuit tied to delayed Siri AI features after criticism that it overpromised capabilities linked to Apple Intelligence.
Neither OpenAI nor Apple has officially commented publicly on the reported legal preparations. However, the breakdown threatens to disrupt one of the highest profile partnerships in the rapidly intensifying battle over AI platforms, smartphones and the future of consumer technology.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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