"It has been just under two years since Apple announced the integration of ChatGPT into iOS, with users able to see results within Siri and analyze photos through Visual Intelligence in the camera app. At the time, ChatGPT had a commanding lead in the AI chatbot market, and Apple was playing catch-up by integrating a third-party tool instead of launching its own."
"The relationship has fractured on OpenAI's end due to Apple's lack of interest in further integration and its poor performance in getting more users to sign up for ChatGPT. According to Bloomberg, the AI research lab is reportedly considering legal action against Apple, may stop short of filing a lawsuit, and instead claim Apple breached the contract."
"On Apple's side, OpenAI has been encroaching on its territory, reportedly annoying executives. It was announced in early 2025 that OpenAI and longtime Apple designer Jony Ive were working on an AI device, and then in June that year, OpenAI acquired the AI hardware startup io for $6.5 billion."
"This device was originally expected to be a pendant, a non-threatening device that would not compete with Apple's current portfolio. But rumors suggest OpenAI may be looking at launching an AI agent phone instead, which would be a much more competitive device. Other rumors say it could be a smart speaker or earphones."
Apple integrated ChatGPT into iOS, enabling Siri results and Visual Intelligence photo analysis. The partnership has reportedly fractured because Apple shows limited interest in further integration and has not driven enough user signups for ChatGPT. OpenAI is reportedly considering legal action, potentially claiming contract breach rather than filing a full lawsuit, after its trial with Elon Musk concludes. Apple’s side is also reportedly frustrated as OpenAI expands into areas Apple considers its territory, including work with Jony Ive on an AI device and the acquisition of io for $6.5 billion. Rumors suggest OpenAI may pursue an agent phone, smart speaker, or earphones, increasing competitive pressure. Apple is also reportedly shifting to multiple providers, with Google winning work on the next Siri version.
Read at TechRepublic
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