AI news story

Apple calls OpenAI's hardware business 'rotten to its core' in trade secret theft lawsuit

The lawsuit also names io Products, the hardware company led by Jony Ive.

  • LLMs
  • Source: Engadget
  • Published: 2026-07-10

Editor's take

Apple alleges in a lawsuit that OpenAI, with the alleged involvement of Jony Ive's hardware company, io Products, has been engaging in trade secret theft by appropriating design elements for its AI hardware ambitions. The Cupertino giant claims OpenAI's hardware business is fundamentally flawed, implying a deliberate effort to leverage Apple's proprietary information.

This dispute highlights the intense competition and escalating legal battles as major tech players vie for dominance in the burgeoning AI hardware market. The involvement of Jony Ive, a pivotal figure in Apple's design history, adds a layer of personal drama and suggests a deeper, perhaps more intricate, understanding of Apple's design philosophy being exploited. The outcome could set precedents for intellectual property protection in AI development.

Future scrutiny will focus on the specific evidence Apple presents to substantiate its trade secret claims and the extent to which OpenAI and io Products can demonstrate independent innovation. The legal proceedings may also reveal more about the internal workings and strategic priorities of both OpenAI's hardware division and Apple's ongoing AI hardware development efforts, potentially impacting investment and partnerships across the sector.