Apple stock dips 1% on report of strained OpenAI partnership

Investing.com -- Apple Inc. (NASDAQ: AAPL) shares hit a session low Thursday afternoon, falling 1% after Bloomberg reported that the company’s partnership with OpenAI has become strained, with the AI startup preparing possible legal action.

OpenAI lawyers are working with an outside legal firm on options that could be executed in the near future, according to people familiar with the matter. The actions under consideration include sending Apple a notice alleging breach of contract without necessarily filing a full lawsuit initially.

The two-year-old partnership, which integrated ChatGPT into Apple software, has failed to meet OpenAI’s expectations. The AI startup anticipated the collaboration would drive more users to subscribe to its chatbot and expected deeper integration across more Apple apps and prime placement within the Siri assistant.

Apple’s use of OpenAI technology across its operating systems remains limited, and features can be hard to find, according to the report. OpenAI enlisted the outside legal firm in recent days to address the situation.

The partnership was announced as part of Apple’s efforts to incorporate AI capabilities into its products, but the limited implementation has left OpenAI dissatisfied with the arrangement’s commercial benefits.

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