Apple's Lawsuit Isn't Expected to Deter OpenAI's Hardware Ambitions

Apple Sues OpenAI In Bid To Kneecap Jony Ive Device That Could Threaten The iPhone – channelnews

Apple has launched blockbuster legal action against OpenAI, accusing the ChatGPT maker of a coordinated campaign to steal its trade secrets, in a move that observers claim could be a deliberate attempt to stall a rival device being designed by Apple’s former design chief Jony Ive, a product that retailers believe could seriously threaten the iPhone. The lawsuit, filed in the US District Court for the Northern District of California on Friday, names OpenAI, its hardware subsidiary io Products, Chief Hardware Officer Tang Tan and former Apple engineer Chang Liu as defendants, alleging trade secret theft “at every level” of the AI Company. In Australia leading CE Retsailers such as JB Hi Fi have been waiting in anticipation for whast Jony Ive is developing with management keen to get a new brand that actually motivates and excites consumers like Apple use to do. The latest action lands as OpenAI prepares to release an entirely new class of AI hardware shaped in large part by Ive, whose departure from Apple in 2019 was a massive blow to the iPhone maker’s design team, and whose reappearance alongside OpenAI CEO Sam Altman set alarm bells ringing in Cupertino. Some observers claim the action could be a “stalling” move by Apple, who are concerned about what OpenAI could deliver in the future, especially as Apple has a shocking track record when it comes to AI development and implementation, with their much-hyped Apple Intelligence and Siri overhaul repeatedly delayed. What Apple Is Alleging In a 41-page complaint, Apple accuses OpenAI of asking former Apple employees, and even prospective recruits, to bring information about unreleased products with them, and of instructing hires on how to evade Apple’s security procedures using a checklist developed by Tan, the tech giant’s former iPhone and Apple Watch design chief who quit Apple in February 2024 to join Ive. Apple claims the stolen material included technical specifications, engineering presentations, proprietary project data and details of vendors and contractors in Apple’s supply chain. Liu, who spent eight years at Apple as a senior systems electrical engineer, is accused of failing to return an Apple-issued laptop after defecting to OpenAI in 2026, then using the machine to download confidential technical documents and coach other Apple staff applying for OpenAI jobs on what to study before their interviews. The complaint also alleges io exploited Apple’s secret metal-finishing techniques by misleading an Apple manufacturing partner into believing it had Apple’s permission, and that OpenAI approached a supplier using confidential Apple information about power and battery components, asking targeted questions “only Apple-insiders would know to ask”. Apple is seeking monetary damages and a court order requiring OpenAI to halt the alleged conduct and destroy any proprietary materials. OpenAI has denied wrongdoing, with a spokesperson claiming “We have no interest in other companies’ trade secrets” and that the Company remains focused on building original products. Ive himself is not named in the filing. The Device Apple Is Worried About Since OpenAI acquired Ive’s AI hardware Company io in a US$6.5 billion deal in 2025, the project has been remarkably secretive, however comments from Altman and Ive, supply chain reports and industry leaks paint a consistent picture of what the pair are trying to build, and it is less “another smartphone” and more an entirely new category of personal computing. At the centre is believed to be a screenless, pocket-sized AI companion that is always available, heavily voice-driven, context aware and designed to reduce time spent staring at screens, with users speaking naturally to the device rather than opening apps. The device is tipped to use microphones, cameras, location data and environmental sensors so the AI knows where you are, what you are doing and what information you need before you ask, one of the biggest differences from today’s smartphones. Reports suggest the hardware may resemble neither a phone nor a smartwatch, with a pendant, a clip-on device and a desktop companion all discussed as part of what Altman has described as “a family of devices” rather than a single product. Altman claimed in November that OpenAI had finished its first prototypes. Ive, who has repeatedly spoken about wanting to build technology that is less socially disruptive than the smartphone, is believed to be designing an entirely new interaction model built around conversation, gestures and AI-generated actions rather than tapping, scrolling and launching apps. OpenAI has assembled an unusually strong hardware team including several former senior Apple executives who worked with Ive on the iPhone, iPad and Apple Watch, and supply chain reports have pointed to manufacturing discussions with Foxconn, although no production partners have been confirmed. Australian Retailers Would Clamour For It If a new range of AI-driven products were to be released by OpenAI carrying the design fingerprints of the man behind the iPhone, Australian retailers would be clamouring to range them, with the products guaranteed to generate a media storm ahead of any local launch. The bigger strategy, according to industry observers, is for OpenAI to move beyond being just an AI software Company, own the hardware through which consumers access AI, cut its dependence on Apple and Google’s operating systems, and establish a new computing platform centred on conversational AI, the first serious attempt since the iPhone to redefine personal computing. The stakes for OpenAI are high, with the litigation landing as the Company gears up for what is expected to be a historic IPO, and just months after it won a high-profile jury trial against Elon Musk. Legal remedies could take months or years to materialise, but the consequences of the lawsuit are likely to be felt more immediately, with Bloomberg reporting the legal fight could put a strain on OpenAI’s recruitment and product development plans. The lawsuit is also a shocking reversal for two companies that entered a high-profile partnership in 2024 when ChatGPT was integrated into the iPhone’s operating system, with Altman personally visiting Apple’s headquarters for the announcement. Apple has not commented on whether the action will affect that partnership. The biggest unknown remains the user experience. Humane’s AI Pin and Rabbit R1 proved that novel hardware alone is not enough, and until the device is officially unveiled, much of what is known remains speculation built on supply chain leaks and informed reporting rather than confirmed fact.

Apple's Lawsuit Leaves OpenAI's iPhone Rival in Limbo

Might be saving them from themselves.

How Apple’s Lawsuit Could Disrupt OpenAI’s Bid to Rival the iPhone

Apple's lawsuit accusing OpenAI of systematically stealing its intellectual property threatens to disrupt the AI company’s device ambitions long before the case is resolved. Bloomberg's Mark Gurman joins Ed Ludlow on "Bloomberg Tech." (Source: Bloomberg)

Apple's lawsuit isn't expected to deter OpenAI's hardware ambitions

TL;DR OpenAI may continue pushing for the launch of its AI hardware next year, despite legal challenges from Apple. The iPhone maker has accused OpenAI and two former company employees of stealing trade secrets. This legal battle could significantly hinder OpenAI’s development of the rumored AI product. OpenAI’s plans to launch its own hardware received a setback following news that Apple is suing the AI juggernaut over allegations of intellect…

Report: Apple's OpenAI Lawsuit Threatens iPhone Rival Plans

OpenAI's ambitions to build a hardware rival to the iPhone are already running into trouble because of Apple's trade secret lawsuit, according to Bloomberg's Mark Gurman, who argues the damage is showing up well before any court ruling. Apple sued OpenAI last week, accusing the company of pushing former employees, and even people it was trying to recruit, to hand over details on unreleased products.