OpenAI Weighs Legal Action Against Apple Over ChatGPT Integration as Apple Picks Gemini
Summary
- OpenAI is considering legal action over the gap between the level of ChatGPT integration it expected from its partnership with Apple and how the service was actually implemented.
- OpenAI said the use of OpenAI technology within Apple's operating system was limited, and that ChatGPT features were hard to find and restrictive, hurting brand reputation and falling short of expectations for subscription revenue.
- Apple has chosen Gemini as its default AI model, while OpenAI is developing AI devices through its io acquisition, pushing the two companies into a more competitive relationship.
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OpenAI is weighing legal action against Apple after concluding that the iPhone maker failed to adequately support ChatGPT under their partnership, according to a report.
Bloomberg reported on May 14, citing multiple people familiar with the matter, that OpenAI has retained outside counsel and is reviewing legal options, including a possible lawsuit against Apple.
Apple unveiled its in-house artificial intelligence system, Apple Intelligence, in June 2024 and added a feature that lets Siri use ChatGPT to answer queries. At the time, the partnership was viewed as mutually beneficial.
Apple could improve Siri, which had drawn criticism for trailing rivals, by incorporating the popular ChatGPT model. OpenAI, meanwhile, expected a large wave of new users from Apple's device base.
But OpenAI now believes the tie-up has fallen short of expectations. The company had expected ChatGPT to be more deeply embedded in Apple's operating system and placed where users could access it more easily.
OpenAI's view is that the scope of its technology's use inside Apple's operating system remains limited. Users also may find it difficult to locate the feature or invoke ChatGPT through Siri. Even when the service is connected, it delivers shorter, more constrained answers than the standalone ChatGPT app.
OpenAI believes that approach has hurt its brand reputation. The company had expected its agreement with Apple to generate billions of dollars in annual subscription revenue, but the actual results have disappointed.
The two companies are also moving rapidly toward direct competition. Apple has selected Google's Gemini as its default AI model instead of OpenAI's technology, and plans to broaden Siri's AI options beyond ChatGPT.
OpenAI has also increased the chances of a hardware clash with Apple by acquiring io, the startup associated with former Apple design chief Jony Ive, to develop AI devices. Chief Executive Officer Sam Altman told The Wall Street Journal late last year that the two companies were heading toward competition.
Still, OpenAI has drawn a distinction between Apple's adoption of other AI models and its legal review. The original partnership was not exclusive.
Oh Se-seong, Hankyung.com reporter, sesung@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
