AAPL Stock Slips From Record Highs As Legal Action Threatens OpenAI Alliance: Report

• Any legal move by OpenAI likely wouldn’t come until after the conclusion of its trial with Elon Musk, as per the report. 
• Apple’s use of OpenAI tech in its operating system is limited. 
• Apple and OpenAI had signed a deal back in 2024.

Apple (AAPL) stock eased on Thursday, dropping marginally from its record highs after media reports suggested OpenAI is considering suing the iPhone maker over the way ChatGPT was integrated with Apple’s mobile ecosystem. 

OpenAI lawyers are actively working with an outside legal firm on a range of options that could be formally executed in the near future and that could include sending the iPhone maker a notice alleging breach of contract without necessarily filing a full lawsuit at the outset, Bloomberg reported, citing people familiar with the matter.

The crux of the problem seems to be that OpenAI is not able to see material benefit from the partnership signed two years ago with Apple that integrated ChatGPT into Apple’s mobile ecosystem, including Siri. 

OpenAI believed that the companies’ partnership, which wove ChatGPT into Apple software, would coax more users into subscribing to the chatbot. It is also expected to have deeper integration across more Apple apps and prime placement within the Siri assistant.

Instead, Apple’s use of OpenAI technology across its operating systems remains limited, and features can be hard to find, Bloomberg reported. 

“We have done everything from a product perspective,” said an OpenAI executive to Bloomberg who asked not to be identified. “They have not, and worse, they haven’t even made an honest effort.” 

The fraying of the deal marks a significant setback for Apple, which has been racing to bolster its artificial intelligence capabilities to keep pace with rivals like Google (GOOGL) with its developments with Gemini, Microsoft (MSFT), and its AI-powered Copilot, as well as being among the top backers of OpenAI and Amazon with its Alexa.  

The Apple, OpenAI Deal 

Apple and OpenAI signed a deal back in 2024, which integrated OpenAI’s ChatGPT into the iPhone’s operating system. The deal gave OpenAI access to hundreds of millions of Apple users, and for Apple, the arrangement brought the company the new technology of the AI era that it could pair with its own services.

Under the terms of the deal, Apple integrated a feature that allowed iPhone users to enroll in ChatGPT's paid tiers directly through iOS settings. In exchange for this streamlined access, Apple would receive a percentage of the subscription fees processed via its devices. 

AAPL Retail View 

Retail sentiment on Stocktwits was “bullish” with “normal” message volumes. 

One user supported Apple and said the iPhone maker could win easily in case OpenAI filed a lawsuit. 

The stock has gained 10% year-to-date. 

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