By Xavier Rivera· ·2.5 min read
OpenAI Weighs Legal Options After Apple ChatGPT Deal Disappoints
OpenAI is exploring legal options after feeling burned by Apple’s ChatGPT integration, which it says was poorly promoted and designed in ways that make it easy for users to ignore. The development comes as renegotiation efforts have stalled and as OpenAI awaits the outcome of its litigation with Elon Musk over the same deal.
Source:Ars Technica
TL;DRAI · 60 sec read
OpenAI is reportedly exploring legal options after Apple’s ChatGPT integration into its products didn’t live up to the AI firm’s expectations, according to insiders granted anonymity to discuss the strained partnership.
When the deal was announced, Apple likened features linking Siri to ChatGPT to its embedding of Google search in the Safari browser. The comparison excited OpenAI, which expected the deal could generate billions of dollars per year in subscriptions, an OpenAI executive granted anonymity told Bloomberg.
Instead, OpenAI suspects Apple intentionally failed to promote the integration and fears that the deal may have damaged the ChatGPT brand, sources said. The company hates how Apple designed the integration, particularly the choice forcing users summoning Siri to specifically invoke the word “ChatGPT” when speaking or typing a command.
That requirement makes the features harder for users to access, OpenAI feels. Apple’s other choices, like using small windows providing limited information when responding with ChatGPT outputs, seem to ensure that users can easily ignore the features, sources said.
Apple didn’t fully explain how the integration would work when the deal came together, so OpenAI took a “leap of faith” it now appears to regret. “When we heard about this opportunity, it sounded amazing: being able to acquire a giant number of customers and have distribution in such a big mobile ecosystem,” the executive said.
Efforts to renegotiate the deal have stalled, Reuters reported. Supposedly due to feeling “burned,” OpenAI has declined to enter other partnerships to work on Apple’s AI models, Bloomberg reported. The AI firm is actively working with an outside legal firm on a range of options that could be formally executed in the near future.
“We have done everything from a product perspective,” the OpenAI executive told Bloomberg. “They have not, and worse, they haven’t even made an honest effort.” OpenAI is still hoping to resolve its issues with Apple outside of court. One option could be accusing Apple of a breach of contract without necessarily filing a lawsuit right away.
OpenAI will most likely delay approaching Apple until after its court battle with Elon Musk concludes, with a decision in that litigation potentially coming next week. Musk filed suit last August alleging that the deal integrating ChatGPT into Apple products violated antitrust and unfair competition laws by propping up OpenAI to dominate the chatbot market and Apple the smartphone market. The lawsuit has survived motions to dismiss and is scheduled for trial in October. The partnership’s end may make it harder for Musk to uphold his claims of a conspiracy.
When the deal was announced, Apple likened features linking Siri to ChatGPT to its embedding of Google search in the Safari browser. The comparison excited OpenAI, which expected the deal could generate billions of dollars per year in subscriptions, an OpenAI executive granted anonymity told Bloomberg.
Instead, OpenAI suspects Apple intentionally failed to promote the integration and fears that the deal may have damaged the ChatGPT brand, sources said. The company hates how Apple designed the integration, particularly the choice forcing users summoning Siri to specifically invoke the word “ChatGPT” when speaking or typing a command.
That requirement makes the features harder for users to access, OpenAI feels. Apple’s other choices, like using small windows providing limited information when responding with ChatGPT outputs, seem to ensure that users can easily ignore the features, sources said.
Apple didn’t fully explain how the integration would work when the deal came together, so OpenAI took a “leap of faith” it now appears to regret. “When we heard about this opportunity, it sounded amazing: being able to acquire a giant number of customers and have distribution in such a big mobile ecosystem,” the executive said.
Efforts to renegotiate the deal have stalled, Reuters reported. Supposedly due to feeling “burned,” OpenAI has declined to enter other partnerships to work on Apple’s AI models, Bloomberg reported. The AI firm is actively working with an outside legal firm on a range of options that could be formally executed in the near future.
“We have done everything from a product perspective,” the OpenAI executive told Bloomberg. “They have not, and worse, they haven’t even made an honest effort.” OpenAI is still hoping to resolve its issues with Apple outside of court. One option could be accusing Apple of a breach of contract without necessarily filing a lawsuit right away.
OpenAI will most likely delay approaching Apple until after its court battle with Elon Musk concludes, with a decision in that litigation potentially coming next week. Musk filed suit last August alleging that the deal integrating ChatGPT into Apple products violated antitrust and unfair competition laws by propping up OpenAI to dominate the chatbot market and Apple the smartphone market. The lawsuit has survived motions to dismiss and is scheduled for trial in October. The partnership’s end may make it harder for Musk to uphold his claims of a conspiracy.
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