OpenAI is weighing legal options against Apple after deciding its 2024 ChatGPT tie-up with the iPhone maker has badly missed the mark. People familiar with the deliberations say the company is considering steps that could include sending a formal breach-of-contract notice as it pushes for clearer, more prominent placement of ChatGPT inside Apple software.
The company has brought in outside counsel to map out its options and is frustrated with how ChatGPT ended up inside Siri and other Apple features, where some users and even OpenAI staff say it is tucked away behind menus and hard to find, according to Bloomberg. The New York Times has reported that the companies struck their original agreement in 2024 and that OpenAI has already tried to renegotiate, with people familiar saying a formal breach notice is one of the options on the table. The Times noted that the dispute turns on placement and usage, not the existence of the partnership itself.
What OpenAI Says It Expected
Inside OpenAI, the Apple integration was supposed to do two big things: boost paid ChatGPT memberships and give the company’s models prominent, system-level access across iOS and macOS. The agreement was announced in 2024, according to OpenAI, and users can also sign up for ChatGPT directly from the iOS Settings app on compatible devices, Reuters reported. People familiar with the talks told The New York Times that OpenAI pushed to rework the terms after the integration underperformed against those expectations.
Apple’s Pivot to Gemini
Complicating matters, Apple signaled a major strategic shift in January when it said Apple Intelligence and a next-generation Siri would rely on Google’s Gemini models and cloud services. That move reshapes how outside AI providers plug into the assistant and how much visibility any single third-party model can realistically expect. Coverage of the rollout noted that Apple’s choice of Gemini changes the platform’s power dynamics and could limit how prominently ChatGPT appears inside Apple’s ecosystem. Ars Technica reported on the joint Apple and Google announcement in January.
Business Friction
People familiar with the discussions told reporters that OpenAI was disappointed to see ChatGPT show up only as an optional setting, often buried behind menus, which in turn limits usage and subscription conversions. Early coverage has also noted that the commercial terms leaned heavily on distribution and exposure rather than a big upfront cash payment from Apple to OpenAI, a structure that helps explain how the two sides could walk away with very different ideas about what “success” would look like. MacRumors has summarized the reporting and background on how the deal evolved.
Legal Stakes
Sending a breach-of-contract notice is not the same thing as racing to court, but lawyers say it is often used as a pressure tactic and can be a prelude to full-blown litigation if negotiations stall. Any public showdown with Apple would land on top of OpenAI’s existing legal headaches, including a high-profile case brought by Elon Musk, making the decision to escalate a particularly fraught one. Bloomberg has detailed the broader legal backdrop around the company.
What To Watch
The next big milestone is Apple’s Worldwide Developer Conference in June, where the company is expected to spell out how Apple Intelligence will work and how third-party models like ChatGPT will surface inside iOS. Until then, users are unlikely to see dramatic day-to-day changes in Siri or ChatGPT access. Behind the scenes, though, the brewing dispute is a reminder that in the AI era, where a feature sits on the screen and how easily people can find it can be just as important as the underlying technology. Reuters highlighted Apple’s upcoming developer schedule.
