OpenAI is reportedly exploring legal options after Apple's ChatGPT integration didn't live up to the AI firm's expectations, proving that sometimes a deal that sounds too good to be true actually is.
When the deal was announced, Apple likened features linking Siri to ChatGPT to its now-infamous deal embedding Google search in Safari, insiders granted anonymity to discuss the 'strained' partnership told Bloomberg. The promise of that excited OpenAI, which expected the deal 'could generate billions of dollars per year in subscriptions,' an OpenAI executive granted anonymity to discuss the partnership told Bloomberg.
Instead, OpenAI suspects Apple intentionally failed to promote the integration and fears the deal may have damaged the ChatGPT brand, sources said. Specifically, OpenAI hates how Apple designed the integration, particularly the choice forcing Apple users summoning Siri to also 'specifically invoke the word 'ChatGPT' when speaking or typing a command,' sources said. That makes it harder for users to access the features, OpenAI apparently feels. And Apple's other choices, like using small windows providing limited information when responding with ChatGPT outputs, ensure users can easily ignore the features, sources said.
As the OpenAI executive explained, 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. Since then, efforts to renegotiate the deal have 'stalled,' Reuters reported. And, supposedly due to feeling 'burned,' OpenAI has declined to enter other partnerships to work on Apple's AI models, Bloomberg reported.
According to the insiders, OpenAI is so disappointed in Apple's work that the AI firm is now '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 summed up. 'They have not, and worse, they haven't even made an honest effort.' Supposedly, OpenAI is still hoping to resolve its issues outside of court, but one option could be accusing Apple of a breach of contract.
Most likely, OpenAI will delay approaching Apple until after its court battle with Elon Musk concludes, Bloomberg reported. A decision in that litigation is potentially coming next week. Musk's lawsuit alleged that the deal integrating ChatGPT into Apple products violated antitrust and unfair competition laws, supposedly propping up OpenAI to dominate the chatbot market and Apple the smartphone market. However, the partnership's end may make it harder for Musk to uphold his claims of a conspiracy.
Increasingly problematic for Musk, the looming fallout between OpenAI and Apple suggests their allegiance is not that deep. Bloomberg's sources suggested that Apple was happy to partner with OpenAI as its own AI projects failed to launch but over time became less inclined to boost ChatGPT after learning about OpenAI's plans to make its own device that could rival the iPhone. Reuters suggested that Apple was so 'rankled' by OpenAI teaming up with its former star designer Jony Ive that it lost motivation to help supercharge ChatGPT as OpenAI expected.
With tensions high, Apple and OpenAI would probably prefer to keep details about how the deal came together secret. However, Musk's lawsuit has recently succeeded in forcing Apple to be more transparent. This week, magistrate judge Hal Ray Jr. denied Musk's request to see Tim Cook's internal messages but ordered Apple to share documents by mid-June from Senior Vice President of Software Engineering Craig Federighi. Apple will also have to provide any 'documents that refer to potential exclusivity clauses of the artificial intelligence provider for Apple products.'
It's possible that OpenAI and Apple will make up before Musk's lawsuit heads to trial this fall. In June, Apple is expected to unveil a revamped Siri that could better promote ChatGPT in ways that resolve at least some of OpenAI's concerns, Bloomberg reported.