OpenAI: Partnership with Apple Fell Short of Expectations

AI firm OpenAI has reported that its collaboration with Apple to integrate ChatGPT into Apple devices has underperformed compared to expectations. In legal filings, the company stated that a 2024 agreement for ChatGPT to power Apple's "Apple Intelligence" features has "performed far below expectations."

Under the terms of the agreement, Apple was expected to leverage OpenAI's technology. However, OpenAI indicated that the integrated AI features failed to generate substantial interest among iPhone users. This was a disappointment for OpenAI, which had anticipated a significant increase in user numbers and subscriptions through "Apple Intelligence."

OpenAI described the first month post-integration as "slow," forcing the company to revise down its projections for weekly active users. By the summer of 2025, it became evident that the performance of Apple's ChatGPT integration was "far below expectations." The company was also concerned that Apple might expedite seeking a new AI partner, potentially costing OpenAI access to Apple's vast global user base.

These details emerged as part of an antitrust lawsuit filed by Elon Musk's xAI, which challenged the Apple-OpenAI partnership. While Apple and xAI have since settled their dispute, OpenAI has requested that the terms of their settlement be made public. OpenAI maintains that the integration did not unfairly boost its market position, arguing its share has instead declined amidst increased competition from rivals like Google, Anthropic, and Meta.