OpenAI is preparing to file a lawsuit against Apple (NASDAQ: AAPL) over its ChatGPT deal gone bad. The AI company tapped an outside law firm to see what they could do.
They may send Apple a letter stating that the company has breached its contract, although a full lawsuit may not take place immediately, according to a Bloomberg report.
OpenAI will likely be finished Elon Musk trial chaos Before taking any legal steps against Apple.
The partnership with Apple was announced at its big conference in June 2024. Apple was scheduled to integrate ChatGPT into iPhones, where users could inquire directly through Siri and also use the camera to send images to ChatGPT for queries.
OpenAI wanted to attract millions of new paying customers through the deal. But this partnership could not achieve what Altman expected.
OpenAI blamed Apple for the failure because it hid ChatGPT features and made it very difficult for people to find them. The money from the deal is nowhere close. One OpenAI manager said Apple asked them to “trust us and trust us” but “it didn’t go well.”
OpenAI isn’t the only one with concerns. Apple is also concerned about how OpenAI handles privacy.
Apple’s long history of dumping partners
This chaos follows a pattern at Apple. The company has a long history of working with and then firing major software companies.
Google Maps was a core part of the first iPhone, but Apple abandoned it in 2012 for its own Maps app. It went so badly that CEO Tim Cook had to apologize publicly.
Google (NASDAQ: GOOG) and Apple started having problems after Google made Android phones in 2008, one year after the iPhone. Eric Schmidt, who was running Google at the time, left Apple’s board in 2009 when the two companies became competitors.
Steve Jobs refused to allow Adobe Flash to run on iPhones and iPads. He wrote a letter in 2010 explaining why, which killed off Flash on phones.
Spotify has spent years saying Apple used the App Store to harm other music apps after launching Apple Music in 2015.
European officials agreed and made Apple pay approximately €1.8 billion in March 2024.
But sometimes, Apple can fix things when it comes to money.
Google is now helping Apple with artificial intelligence after signing a deal in January. Google’s Gemini models will power the next version of Apple’s smart features. Apple pays Google about $1 billion a year for this.
OpenAI is restructuring its Microsoft deal
Just a month ago, OpenAI She changed her deal With Microsoft in April. The new setting puts a limit on the amount of money OpenAI must share with Microsoft. OpenAI will continue to pay Microsoft 20% until 2030, but there is now a cap on the total payout. Reports say the maximum is $38 billion.
Microsoft (NASDAQ: MSFT) has put more than $13 billion into OpenAI as of 2019. The new deal allows OpenAI to work with other cloud companies like Amazon and Google, not just Microsoft. Microsoft can still use OpenAI technology until 2032, but other companies can use it now, too.
OpenAI signed a massive deal with Amazon (NASDAQ: AMZN) in February. Amazon said it will invest up to $50 billion in OpenAI and allow the company to use Amazon cloud services.
OpenAI also manufactures hardware
the The company bought Jony Ive’s company was sold last May for $6.5 billion. The first device should come out in the second half of 2026, and go straight into Apple’s market, Chris Lehane, who handles global affairs at OpenAI, said at a meeting in Davos.
He didn’t say what it looks like, but reports say it could be small without a screen, and perhaps something you wear.
Sam Altman said it would be simpler and quieter than a phone.
As reported CryptopolitanOpenAI faces another legal battle with a seemingly unserious Musk, who did not appear in closing arguments due to his visit to China. OpenAI even said that Musk was once looking at memes during a meeting.
