OpenAI and Apple are at a strange crossroads just two years after they proudly announced their collaboration for powering Apple Intelligence. A partnership that was expected to give OpenAI a reliable mobile platform to propagate its offerings didn’t seem to work as well as Sam Altman had hoped. Hence, it seems surprising to learn about OpenAI considering suing Apple over the same concern. 

A Bloomberg report now speculates that OpenAI is preparing a potential legal strike against the iPhone maker over concerns of a failed integration with Apple’s platform. The integration of ChatGPT with iPhone was expected to bring more subscribers to OpenAI, potentially gaining an advantage over rivals like Google Gemini and Anthropic Claude.

Note that Apple has also inked a deal with Google to use its Gemini AI models for developing its Apple Intelligence features and upgrading Siri, the popular voice assistant on iPhones that’s in dire need of an ‘intelligence infusion.’

OpenAI’s breaking point

According to Bloomberg sources familiar with the matter, OpenAI executives believe Apple has failed to uphold its end of the strategic bargain.

When the deal was signed in 2024, OpenAI viewed Apple’s massive ecosystem of over 2 billion active devices as a ‘distribution rocket ship.’ The company expected that an integration with Apple’s massive ecosystem would drive billions in new ChatGPT Plus subscriptions. However, the reality has been far more modest, as OpenAI’s Apple partnership hasn’t helped its cause in the AI race, especially as competitors like Anthropic and Google have picked up pace, signing deals with Apple for expanding Siri’s capabilities.

Some of OpenAI’s grievances reportedly include:

Hidden integration: OpenAI claims Apple has “buried” ChatGPT within the Siri interface. Users often have to explicitly invoke the name “ChatGPT” for Siri to hand off a query, rather than the seamless and proactive integration that OpenAI had expected.

Diluted brand experience: When you ask Siri a query, responses provided are often truncated or displayed in small, constrained windows. OpenAI argues that this UI design hurts its brand and pushes users back to the standalone app, where Apple doesn’t control the experience.

Google Gemini factor: The deals with Google’s Gemini and Anthropic’s Claude to present these AI assistants as two equal options for Siri to refer for answers has made OpenAI feel like just another “utility provider” rather than a lead partner.

The Jony Ive factor: Tensions between OpenAI and Apple have been further ignited by OpenAI’s secret collaboration with former Apple design legend Jony Ive for building a dedicated AI consumer device – a move Apple views as an attack.

“We have done everything from a product perspective,” one OpenAI executive reportedly stated. “They have not… they haven’t even made an honest effort.”

OpenAI vs Apple: What could this mean for all iPhone and Mac users

If the legal spat escalates, the consequences for users relying on the present-day ‘Apple Intelligence experience’ may not be pleasant, unless Apple decides to rope in Google for patching the gaps. 

1. A not-so-intelligent Siri

Currently, Siri relies on OpenAI for complex reasoning, creative writing, and image generation. If OpenAI pulls its API access or a court issues an injunction, Siri could revert to being a much more basic assistant. Apple will have to fast-track its in-house model development or utilise the Google Gemini deal to patch the feature list.

2. Fragmented features

Features like Visual Intelligence – where you point your iPhone camera at a restaurant or object to get ChatGPT’s analysis – could disappear or be replaced by inferior alternatives. This could lead to a broken software experience for those on the latest iOS.

3. Choice and confusion

Apple is already preparing for a post-OpenAI world by making it easier for users to swap their default AI provider. While this gives consumers more choice, it may lead to a fragmented ecosystem where users have to manage multiple subscriptions (Gemini, Claude, and ChatGPT) to get the best out of their devices.

4. Privacy vs performance

Apple has long used privacy concerns as a shield, stating that it limits OpenAI’s access to protect user data. If the partnership dissolves, Apple is likely to lean even harder into ‘on-device AI,’ which is more private but currently less powerful than OpenAI’s cloud-based models. Perhaps Apple could utilise Google’s Gemma models to fill up the gap for the time being, but on the whole, it could affect the iOS experience.

Will OpenAI proceed with legal options?

At a time when OpenAI and its top management are already witnessing a lawsuit from Elon Musk and several other parties for troubles related to the company and its product, it remains to be seen how OpenAI responds to the troubles with its partner. The legal experts suggest OpenAI may first issue a formal ‘Notice of Breach,’ giving Apple a window to renegotiate terms or improve the integration. 

Apple, on the other hand, is emphasising internal development of AI models. With OpenAI eyeing the hardware market too, the two tech titans appear to be on an irreversible collision course.

For now, ChatGPT remains active on your iPhone.