OpenAI is dissatisfied with the cooperation results with Apple Inc. (AAPL.US) and is considering legal means to resolve the dispute.

According to informed sources, the two-year cooperation between Apple Inc. (AAPL.US) and OpenAI has become tense, as the artificial intelligence startup company has not been able to gain the expected benefits from the deal and is now preparing for possible legal action. OpenAI's lawyers are actively collaborating with an external law firm to study a series of possible actions that may be formally implemented in the near future. This may include sending a notice of breach to the iPhone manufacturer, rather than immediately filing a comprehensive lawsuit. OpenAI recently hired this external firm to assist in handling this matter. OpenAI had believed that the collaboration with Apple Inc. would integrate ChatGPT into Apple Inc. software, attracting more users to subscribe to this chat Siasun Robot & Automation. The company also expected ChatGPT to be more deeply integrated into more Apple Inc. applications and to have a prominent position in the Siri assistant. However, the application of OpenAI technology in the operating system of Apple Inc. is still limited, and the relevant functions are also difficult to find. "We have done all the work from a product perspective," an anonymous OpenAI executive said, "They haven't, and what's worse, they haven't even made sincere efforts." Spokespersons for OpenAI and Apple Inc. declined to comment. Following this news, Apple Inc.'s stock price fell as much as 1.2% in midday trading on Thursday, hitting an intraday low, but rebounded by the close, ultimately dropping by 0.22%. As of Thursday's close, the stock has risen 10% year-to-date, roughly in line with the S&P 500 index. For OpenAI, this rift exacerbates the split in the tech community. The company is currently involved in legal proceedings with co-founder Elon Musk and recently renegotiated an exclusive agreement with major supporter Microsoft Corporation. Meanwhile, Amazon.com, Inc. has strengthened its connections with OpenAI competitor Anthropic PBC. Apple Inc. has long had concerns about OpenAI, including whether the company is doing enough to protect user privacy. Additionally, the company's recent push for device developmentled by a former Apple Inc. executivehas angered the iPhone manufacturer. According to informed sources, any legal action from OpenAI against Apple Inc. may have to wait until the conclusion of the Musk case. A final decision has not yet been made, and OpenAI still hopes to resolve its dispute with Apple Inc. through out-of-court means. Expectations vs. Reality of the OpenAI and Apple Inc. collaboration At one point, it seemed that the two Silicon Valley companies were poised to establish a broad strategic partnership. In June 2024, OpenAI CEO Sam Altman sat in the audience at Apple Inc.'s campus, attending the announcement of the deala software chief, Craig Federighi, called the startup a "pioneer and market leader" in the field of artificial intelligence. The collaboration allowed users to access ChatGPT's results in Siri and utilize the iPhone's "visual intelligence" feature to generate text and analyze surrounding objects using artificial intelligence technology. The partnership further expanded, with Apple Inc. adding ChatGPT as an option for creating images and analyzing screen content in the Image Playground app. As part of the agreement, iPhone users could directly enroll in ChatGPT membership from the iOS settings menuApple Inc. would take a portion of the subscription revenue generated from its platform. At one point, OpenAI executives believed that this collaboration might eventually become a significant source of revenue as the company prepared for its initial public offering. However, according to informed sources, the relationship deteriorated, and OpenAI's renegotiation efforts hit a standstill. User research conducted by the artificial intelligence startup OpenAI showed that Apple Inc. users overwhelmingly preferred using the standalone ChatGPT app rather than accessing OpenAI's technology through Siri and other Apple Inc. services. The integration method designed by Apple Inc. means that users often need to mention "ChatGPT" specifically while giving commands via Siri voice or text in order to get results from OpenAI. Additionally, the responses from ChatGPT are more limited compared to what the standalone OpenAI app provides: they are displayed in a small window with limited information. Furthermore, OpenAI executives believe that Apple Inc. has not been fully promoting integration between the iPhone, iPad, and Mac ecosystems. Initially, OpenAI believed that this deal would bring in billions of dollars in subscription revenue each yearbut the reality fell far short. The company now believes that Apple Inc.'s implementation has damaged OpenAI's brand image among customers. "When we heard about this opportunity, it felt great: being able to access a massive customer base and establish distribution channels in such a huge mobile ecosystem," said the OpenAI executive. However, the individual stated that Apple Inc. did not reveal the specifics of the product at that time. "They basically said, 'OpenAI needs to take a risk and trust us', " the executive said, adding that the deal ultimately turned out to be a failure for the startup company. According to informed sources, OpenAI is not interested in developing new models in collaboration with Apple Inc. because they feel betrayed by the initial partnership. "Apple Inc. has such a strong market influence that they can dictate the terms of negotiations," one executive said, "we took a risk in trusting you, but the outcome was not ideal." OpenAI loses exclusive advantage in iOS ecosystem In the coming months, OpenAI is set to lose its unique position in Apple Inc. software. Reportedly, the iPhone manufacturer will open its platform to numerous competitors later this year. This means that users will be able to install multiple AI chat Siasun Robot & Automation from the App Store and use them to answer questions or process images and text in Siri. As part of this initiative, Apple Inc. is testing integrations with Anthropic's Claude and Google Gemini. Siri has been enhanced with this featureas part of the iOS 27 operating systemand is planned to be launched at the Apple Inc. Worldwide Developers Conference on June 8. Since 2024, Claude and Gemini have become strong competitors to ChatGPT. According to reports this week, Anthropic is in early talks for funding, with a valuation exceeding $90 billion, highlighting the company's rapid rise. The new integration system called "Extensions" in iOS 27 may actually be more favorable for the development of ChatGPTeven as competition intensifies. In the new system's search interface, users will see an AI model selector that includes Siri as well as external alternatives such as OpenAI. During preliminary negotiations of the agreement in 2024, Apple Inc. had stated that the opportunity of this collaboration was comparable to the search partnership deal it reached with Alphabet Inc. Class C in the Safari browser. This partnership brought in hundreds of billions of dollars in revenue for both parties each year. The integration of ChatGPT and Apple Inc.'s plans to revamp its underlying AI models using Gemini from Alphabet Inc. Class C's team are two different matters. Apple Inc. reached the latter agreement with Alphabet Inc. Class C at the end of the last year, having previously considered a broader collaboration with OpenAI. According to reports from last year, Apple Inc. pays around $1 billion annually to Alphabet Inc. Class C for using its artificial intelligence technology. Apple Inc. CEO Tim Cook stated in February of this year that Apple Inc. collaborated with Alphabet Inc. Class C because it believes "Alphabet Inc. Class C's AI technology will provide the most capable foundation for its artificial intelligence projects." The multiple underlying issues behind the deteriorating relationship between Apple Inc. and OpenAI Meanwhile, OpenAI has become a potential competitor to Apple Inc. in the hardware sector. Last year, the artificial intelligence company acquired a next-generation device startup co-founded by former Apple Inc. chief designer Jonathan Ive, creating new tensions. The company led by former Apple Inc. executives Don Tan and Evans Hang is now working on alternatives to iPhones and other devices. Reportedly, Apple Inc. executives have been angry for over a year about OpenAI poaching engineers from its hardware team. To attract talent, the artificial intelligence company's stock options are valued millions of dollars more than those offered by Apple Inc. As early as 2024, Apple Inc. had additional concerns about the privacy standards of ChatGPT. However, according to informed sources, Apple Inc. had no choice but to integrate the technology at the time, as the company realized that its internal generative artificial intelligence capabilities were far from mature. Apple Inc.'s difficulties in delivering artificial intelligence technology on time have tarnished its reputation. Earlier this month, the company paid $250 million to settle a class-action lawsuit alleging false advertising of its new Siri features. Some technologies promoted to consumers in 2024 have still not been released.