Apple and OpenAI Partnership Strains as OpenAI Prepares Possible Legal Action

Bloomberg reports that Apple's two-year-old partnership with OpenAI "has become strained, according to people familiar with the matter." Bloomberg describes OpenAI as "failing to see the expected benefits from the deal and now preparing possible legal action." OpenAI lawyers are actively working with an outside legal firm on a range of options that could be formally executed in the near future, said the people, who asked not to be identified because the deliberations are private. That could include sending the iPhone maker a notice alleging breach of contract without necessarily filing a full lawsuit at the outset, according to the people... OpenAI believed that the companies' partnership, which wove ChatGPT into Apple software, would coax more users into subscribing to the chatbot. It also expected deeper integration across more Apple apps and prime placement within the Siri assistant. Instead, Apple's use of OpenAI technology across its operating systems remains limited, and features can be hard to find... Apple has had its own concerns about OpenAI, including whether the company does enough to protect user privacy. And a recent push [by OpenAI] to make devices — an effort overseen by former Apple executives — has rankled the iPhone maker. Any legal move by OpenAI likely wouldn't come until after the conclusion of the Musk trial, according to the people. No final decisions have been made, and OpenAI still hopes to resolve its issues with Apple outside of court. The article points out that OpenAI "initially believed the deal could generate billions of dollars per year in subscriptions — something that hasn't come close to happening." An OpenAI executive argues to Bloomberg that from a product perspective Apple hasn't done everything they could, "and worse, they haven't even made an honest effort." Read more of this story at Slashdot.

Apple Inc.’s two-year-old partnership with OpenAI has become strained, according to people familiar with the matter, with the AI startup failing to see the expected benefits from the deal and now preparing possible legal action.  Anurag Rana, Bloomberg Intelligence Technology Analyst, joins to discuss. (Source: Bloomberg)

Apple Inc.’s two-year-old partnership with OpenAI has reportedly become strained, with the AI startup preparing possible legal action after failing to see the expected benefits from the deal. (Source: Bloomberg)

Apple Inc.’s two-year-old partnership with OpenAI has become strained, according to people familiar with the matter, with the AI startup failing to see the expected benefits from the deal and now preparing possible legal action.