Catenaa, Thursday, May 14, 2026- Apple and OpenAI two-year-old partnership has become strained, with the AI startup failing to see the expected benefits from the deal and now preparing possible legal action.
Bloomberg News reported that OpenAI lawyers are actively working with an outside legal firm on a range of options that could be formally executed in the near future.
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 enlisted the outside firm in recent days to help with the situation.
OpenAI believed that the companies’ partnership, which wove ChatGPT into Apple software, would coax more users into subscribing to the chatbot.
It is also expected to have 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 shares slipped to a session low Thursday on the news, falling as much as 1.2% to $295.38. The stock was up 10% this year through Wednesday’s close, roughly in line with the S&P 500.
Apple has had its own concerns about OpenAI, including whether the company does enough to protect user privacy. And a recent push by the startup 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 its trial with Elon Musk, the report said, adding that no final decisions have been made, and OpenAI still hopes to resolve its issues with Apple outside of court.
It’s a startling rift for two Silicon Valley companies that once seemed poised for a broad strategic relationship.
In June 2024, OpenAI Chief Executive Officer Sam Altman sat in the audience at Apple’s campus when the deal was announced, with software head Craig Federighi referring to the startup as the “pioneer and market leader” in artificial intelligence.
The arrangement lets users access ChatGPT results within Siri and tap the AI technology to generate text and analyze surrounding objects via the iPhone’s Visual Intelligence feature.
The partnership later expanded, with Apple adding ChatGPT as an option for creating images in its Image Playground app and analyzing on-screen content.
As part of the agreement, iPhone users got a way to sign up for ChatGPT memberships directly from the iOS settings menu, with Apple taking a portion of the subscription revenue generated through its platforms.
OpenAI executives believed the arrangement could eventually become a major revenue stream as the company worked toward an initial public offering. Instead, the relationship has deteriorated, Bloomberg News reported, and OpenAI’s attempts at renegotiating the deal have stalled.
