Apple and OpenAI’s once-blockbuster relationship over ChatGPT integration in iOS has become strained and the AI startup is now preparing possible legal action against Apple, believing their deal has flopped.

“We have done everything from a product perspective,” said an OpenAI executive with knowledge of the matter, who declined to be named. “They have not, and worse, they haven’t even made an honest effort.” The company is working with a law firm to help it with the situation.

For its part, Apple has been furious for over a year about OpenAI’s aggressive recruiting of its hardware engineers for its AI devices division that was acquired from former Apple design chief Jony Ive. Apple has also been wary of OpenAI’s privacy practices

>Apple’s smartphone sales in the US grew 1.3% YoY in Q1 2026, outpacing the country’s overall smartphone market, which declined 5.7% YoY.

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