Apple has sued OpenAI, accusing the ChatGPT maker of systematically stealing trade secrets tied to unreleased Apple products, in a filing that could complicate OpenAI’s ambitions to build hardware capable of rivaling the iPhone. The lawsuit, filed last week, alleges OpenAI asked former Apple employees and even prospective recruits to bring information about products still in development, and instructed new hires on how to bypass Apple’s internal security checks using a protocol devised by the company’s former iPhone design chief.
Apple is seeking monetary damages as well as a court order forcing OpenAI to halt the alleged conduct and destroy any proprietary material it obtained. A final ruling could take months or years, but the more immediate impact is expected to fall on OpenAI’s recruitment pipeline and product timelines, according to a Bloomberg report carried by Business Standard. OpenAI has denied wrongdoing, saying in response to the suit that it has “no interest in other companies’ trade secrets” and remains focused on building its own technology.
The dispute centers on OpenAI’s aggressive hiring from Apple’s hardware divisions, including teams that work on the iPhone, Apple Watch and AirPods. OpenAI now employs more than 400 former Apple staff, the report said, with compensation packages large enough that Apple has responded with unusually large retention bonuses and sent senior executives to persuade engineers to stay. In some instances, the hiring drained entire engineering groups, forcing Apple to rebuild parts of its teams.
OpenAI has combined that pool of former Apple engineers with designers such as Jony Ive as it works toward a family of devices, with a simpler, non-smartphone product expected to launch first and a broader iPhone-style competitor planned for release in 2027. Apple, meanwhile, is developing its own AI-driven devices, including new AirPods, a pendant, smart glasses, a tabletop robot and a smart home hub with facial recognition, according to the report.
Bloomberg Intelligence said Apple is likely to secure at least targeted preliminary relief tied to OpenAI’s device work, which could require disputed materials to be isolated and evidence preserved while compliance is certified, potentially slowing OpenAI’s hardware plans even before the case is fully argued. The lawsuit is also expected to add legal reviews and compliance training inside OpenAI that could divert engineering time, and may make suppliers in Asia’s electronics manufacturing network more cautious about deepening ties with OpenAI given Apple’s market power.
OpenAI Chief Executive Sam Altman responded to the suit in a post on social platform X, saying he is “not afraid of Apple” and has “tremendous respect” for the company. Apple, in its court filing, said OpenAI’s hardware business “rests on the shakiest of foundations” due to what it called illegal reliance on misappropriated trade secrets.