What happened
OpenAI is reportedly exploring legal action against Apple, including a potential breach-of-contract notice. Bloomberg News reported OpenAI's frustration stems from the ChatGPT integration, announced at Apple's Worldwide Developers Conference in June 2024, failing to meet revenue projections and being "buried" within Apple's operating systems. The integration embedded ChatGPT into Siri and Visual Intelligence. Apple reportedly holds grievances regarding OpenAI's privacy standards and its hardware initiatives, which include former Apple executives.
Why it matters
Platform integrations carry significant risks for revenue and user acquisition, impacting founders and product teams. Bloomberg's report indicates OpenAI's projected revenue from the Apple partnership fell short, demonstrating how platform control can override initial expectations. This follows the European Commission fining Apple €1.8 billion in March 2024 for disadvantaging Spotify, highlighting the constraint on partners within dominant ecosystems. Procurement teams must scrutinise integration terms, recognising potential revenue shortfalls and limited market reach.
