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theverge ai · July 23, 2026

Apple sues OpenAI over hardware secrets

apple filed a trade secrets lawsuit against openai alleging ex-apple employees stole hardware info, threatening openai's $6.5b bet on physical ai devices.

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apple accuses openai of systematic theft, claiming employees targeted proprietary hardware data to accelerate openai's own device roadmap. openai denies the allegations, but the case follows its contentious $6.5 billion purchase of io products, jony ive’s firm, signaling a collision course between the two giants. facing cash burn and executive turnover, openai cannot easily afford a protracted legal war against a litigious rival like apple. this dispute highlights the critical importance of hardware IP as the ai industry shifts from software to physical devices.

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