Apple’s collaboration with OpenAI to integrate ChatGPT-based artificial intelligence features into iPhones significantly underperformed following its 2024 launch, according to court documents filed as part of ongoing litigation. The filings reveal the deterioration of the partnership between two Silicon Valley giants and highlight the challenges faced in bringing AI technologies directly to Apple’s vast user base.

The deal, which aimed to embed OpenAI’s ChatGPT within the “Apple Intelligence” framework on millions of iPhones, was expected to generate substantial user interest and subscription growth. OpenAI had anticipated a “halo effect” from association with Apple’s brand and promotional efforts. However, the company expressed disappointment in the low level of uptake reported shortly after the rollout.

Court papers indicate that the integration’s default setting was turned off, requiring iPhone users to manually enable the ChatGPT features. This limitation was cited as a contributing factor to the sluggish adoption rates. By mid-2025, OpenAI acknowledged internally that the partnership was “dramatically underperforming” relative to initial expectations and adjusted its forecasts downward.

Concerns also arose within OpenAI about Apple’s potential eagerness to accelerate its search for alternative AI partners, which could curtail OpenAI’s opportunity to expand its reach through Apple’s extensive global device ecosystem. Communication exchanges between executives from both companies, though partially redacted, illustrate the increasing tensions as the working relationship unraveled.

The commercial underperformance played a role in the eventual breakdown of the alliance. In May 2025, OpenAI reportedly considered legal remedies in response to what it viewed as Apple’s failure to deliver on the partnership’s promises. Subsequently, in July 2026, Apple initiated a high-profile lawsuit against OpenAI, accusing the company of large-scale trade secret theft.

In parallel, Elon Musk’s AI company xAI—now integrated under SpaceX—filed an antitrust lawsuit in August 2025 challenging the terms of the Apple-OpenAI agreement. Apple settled this litigation with Musk shortly before the recent court filings became public.

Apple has since moved forward with its AI strategy by collaborating with Google to incorporate its Gemini models into a revamped “Siri AI,” following delays in Apple’s own AI developments. The developments surrounding the Apple-OpenAI partnership offer insight into the complex dynamics shaping AI deployment in consumer technology and underscore the competitive pressures among major players vying for dominance in this emerging field.