Apple’s OpenAI Deal Hits Legal Turbulence Before WWDC AI Reveal

15 May 2026

San Francisco, May 15, 2026, 09:04 PDT

OpenAI is considering legal action against Apple as tensions mount around their troubled ChatGPT-iPhone collaboration.
Apple is set to reveal further details on its AI strategy during WWDC, scheduled for June 8-12.
Apple shares edged up around 1% Friday, with investor concerns appearing subdued for the moment.

OpenAI is weighing potential legal steps against Apple Inc., frustrated that a partnership struck two years ago hasn’t produced the tighter ChatGPT integration or subscription boost it had counted on, according to someone with direct knowledge of the situation who spoke with Reuters.

This dispute comes into sharper focus just weeks ahead of Apple’s Worldwide Developers Conference. Investors and developers want to see whether the company can make Apple Intelligence a convincing challenger to AI offerings from Alphabet’s Google, Anthropic, and other rivals. Apple has scheduled WWDC26 for June 8 through June 12.

OpenAI’s legal team, alongside an external law firm, is weighing next moves—Reuters says options on the table include issuing a breach-of-contract notice, essentially alleging a partner didn’t hold up their end of the deal. No lawsuit yet. Apple, for its part, didn’t get back to Reuters when asked for comment.

According to the Financial Times, OpenAI is weighing legal options related to the iPhone AI partnership, with both firms refusing to comment. The FT reports that OpenAI feels Apple hasn’t given the alliance sufficient priority since their 2024 agreement to integrate ChatGPT on iPhones.

Apple still touts ChatGPT as “seamlessly integrated” with Siri, Writing Tools, visual intelligence, Image Playground, and Shortcuts in its consumer-facing materials. The company notes users must give permission before any information goes to ChatGPT. Paid ChatGPT subscribers have the option to link accounts for added features. Apple

This is where the friction shows. Apple has framed external AI models as add-ons within its ecosystem, yet OpenAI seemed to want its technology built in more deeply, with a bigger footprint in Apple’s software and preferences. Reuters reported that OpenAI attempted to revisit the terms, only for negotiations to hit a wall.

Apple has reportedly been experimenting with Anthropic’s Claude and Google Gemini as well, Bloomberg noted, according to Reuters. The deal with OpenAI wasn’t intended as an exclusive partnership, and Apple’s collaborations with other AI firms aren’t behind OpenAI’s current legal considerations, a source familiar told Reuters.

Apple’s rollout comes at a tricky moment. Earlier in 2024, the company unveiled Apple Intelligence, a generative AI platform designed to power text, images, and more across its iPhone, iPad, and Mac lineup. Tim Cook, Apple’s chief executive, touted it as “a new chapter in Apple innovation.” Apple

Apple stock has held up, shrugging off legal worries for now. Shares last traded near $301.22, about 1% higher on the day, while the Nasdaq remained open.

Investors have been buying the stock following Apple’s recent quarterly report. On April 30, the company reported $111.2 billion in fiscal second-quarter revenue, a 17% jump from the year before. Diluted EPS hit $2.01, up 22%. CFO Kevan Parekh credited demand for pushing Apple’s active device base to a fresh record.

Analysts are shifting focus beyond the immediate iPhone cycle, zeroing in on services and AI potential. On Friday, Barron’s highlighted Evercore ISI’s Amit Daryanani, who bumped his Apple price target up to $365 from $330, crediting stronger earnings, free cash flow, and services expansion. Daryanani also flagged anticipated AI announcements at WWDC.

The risk here: what started as a low-profile platform disagreement could spill into open court right when Apple is making its AI pitch. No suit so far; contract details haven’t surfaced. Apple could claim its privacy features and the non-exclusive approach were always baked in. OpenAI might figure that just sending a formal notice is enough to get some leverage, sidestepping a full-on lawsuit.

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Khadija Saeed is a financial markets reporter at TS2.tech. Her coverage ranges from stocks and technology to emerging industries and developments across global markets. She studied economics and finance at the London School of Economics and worked in market research before becoming a financial journalist. Follow Khadija Saeed on Google News.

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