Apple has accused OpenAI of using information obtained from former Apple employees to gain an advantage in developing consumer hardware, while OpenAI has rejected the allegations as baseless and asked the court to permanently dismiss the lawsuit. A federal judge is scheduled to consider the two sides’ requests at a hearing on October 1.
The dispute comes as OpenAI works with former Apple design chief Jony Ive on a new generation of AI-powered hardware. Details of the device remain unconfirmed by OpenAI, but reports suggest the first product could be a screen-free smart speaker designed to offer a new way of interacting with AI.
Apple accuses OpenAI of trade secret theft
Apple filed its lawsuit in San Jose, California, last month, accusing OpenAI of orchestrating a campaign to obtain confidential information through former Apple employees.
In a new court filing, Apple described the alleged conduct as repeated instances of deliberate theft and argued that OpenAI should not be allowed to use Apple’s confidential information to gain an early advantage in the hardware market.
Apple has also sought an injunction, arguing that the alleged harm is ongoing and that every additional day could allow information to become embedded in OpenAI’s hardware development efforts.
According to Apple’s original complaint, more than 400 former Apple employees currently work at OpenAI. However, the number of former employees alone does not establish that trade secrets were misused. The central dispute is whether confidential Apple information was actually taken or used by OpenAI.
OpenAI calls Apple’s claims baseless
OpenAI has strongly rejected Apple’s allegations.
In its response, the ChatGPT maker asked the court to permanently dismiss the case, arguing that Apple’s complaint does not establish that OpenAI stole or used Apple’s trade secrets.
OpenAI has also argued that Apple has not identified a specific Apple product that it claims OpenAI copied. The company maintains that it is developing something entirely new and different rather than reproducing Apple’s products.
The company has further argued that California’s employment environment allows workers to move between companies and that Apple’s lawsuit is an attempt to compensate for shortcomings in retaining talent and competing in AI.
Secret AI hardware project at centre of dispute
At the heart of the legal fight is OpenAI’s highly secretive hardware programme.
The company acquired io, the AI hardware start-up founded by Jony Ive, in a deal valued at about $6.5 billion. Ive, who played a central role in designing iconic Apple products, is now working with OpenAI on a new category of AI device.
Apple’s lawyers have cited reports about OpenAI’s upcoming hardware project as evidence of why the case requires urgent attention.
According to reports cited in the court dispute, OpenAI’s first device could be a screenless smart speaker developed in collaboration with Ive’s design studio, LoveFrom.
What the OpenAI device may look like
Reports have offered some clues about the device, although OpenAI has not officially confirmed the leaked specifications.
Bloomberg has reported that the device could have a circular, doughnut-like design, roughly comparable in size to a hockey puck. Its reported price is between $300 and $400, with a potential launch in 2027.
Other reports have described the product as part of a broader effort by OpenAI to develop a family of AI hardware devices rather than another conventional smartphone or computer.
The concept is intended to provide users with an AI assistant through a physical product without relying on a traditional screen-based interface.
OpenAI has not confirmed these leaked details.
Apple raises concerns over former executives
Apple has specifically raised questions about Tang Tan, OpenAI’s head of hardware and a former Apple vice president of design.
Apple alleges that Tan used knowledge of unreleased Apple products while interacting with prospective OpenAI recruits and that candidates were asked to bring prototypes or design files to interviews.
OpenAI has denied wrongdoing and said Tan repeatedly instructed recruits and his team not to bring or disclose confidential information belonging to former employers.
The company argues that such instructions demonstrate its efforts to avoid using proprietary information from other companies.
OpenAI turns allegations back on Apple
OpenAI has also challenged Apple’s own data-handling practices.
In its court response, the company alleged that Apple had encouraged some employees to use personal iCloud accounts for work, potentially mixing company and personal data. OpenAI argued that Apple had also failed to manage access properly when employees left the company.
These claims are part of OpenAI’s broader argument that Apple has not demonstrated that its confidential information was systematically taken or used by the AI company.
Apple and OpenAI remain business partners
The legal dispute is particularly notable because Apple and OpenAI are not complete business rivals.
ChatGPT has been integrated into Apple products since 2024, meaning the two companies continue to have a commercial relationship even as they fight in court over OpenAI’s hardware ambitions.
The unusual relationship highlights the rapidly changing nature of the technology industry, where companies can simultaneously collaborate in one area and compete aggressively in another.
AI hardware race adds to tensions
The dispute comes at a time when major technology companies are increasingly exploring AI hardware.
OpenAI’s collaboration with Jony Ive represents an attempt to move beyond the chatbot interface and create new ways for people to interact with artificial intelligence.
The company is competing in a market that could eventually include products from established technology giants as well as newer AI-focused hardware companies. The success of OpenAI’s project could therefore have implications extending beyond the current lawsuit.
Court hearing scheduled for October
The immediate focus now shifts to the US court proceedings.
Federal Judge Edward Davila is expected to consider Apple’s request for legal protection and OpenAI’s request for dismissal at a hearing on October 1.
The court’s decisions could determine whether Apple’s case proceeds and whether OpenAI faces restrictions while developing its new hardware products.
For now, neither side has won the underlying trade secrets dispute. Apple’s allegations remain claims, while OpenAI continues to deny that it misused Apple’s confidential information.
Conclusion
The Apple-OpenAI legal battle has escalated into a major confrontation over the future of AI hardware. Apple says OpenAI is attempting to gain an unfair advantage by using confidential information allegedly obtained through former employees, while OpenAI insists the lawsuit is baseless and that it is building an entirely new product.
The dispute is unfolding alongside OpenAI’s secretive hardware collaboration with Jony Ive, making the case particularly significant for the emerging AI device market. With a court hearing scheduled for October 1, the legal fight could influence how OpenAI develops and launches its next generation of consumer hardware.