Apple's trade secrets lawsuit threatens OpenAI's next-generation device plans: Report

OpenAI's ambitions to build a hardware rival to the iPhone have reportedly hit a roadblock after Apple filed a trade secrets lawsuit against the Sam Altman-led company. According to a recent report by Bloomberg's Mark Gurman, the fallout from the case is already being felt, well before any court ruling.

Apple has accused OpenAI of encouraging former employees—and those it was attempting to recruit—to disclose confidential information about unreleased products. The lawsuit alleges that OpenAI coached new hires on how to avoid Apple's exit interview security checks using a document linked to former iPhone design chief Tang Tan.

The Cupertino-based tech giant has asked the court to order OpenAI to stop the alleged conduct, destroy any proprietary material it may have obtained, and pay damages.

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According to Gurman, while a courtroom resolution could take years, the lawsuit is already hurting OpenAI by making it more difficult to recruit talent. The legal scrutiny could slow the company's hardware ambitions long before a judge delivers a verdict. OpenAI has declined to share its hardware roadmap publicly. In response to the lawsuit, the company said it has no interest in other companies' trade secrets and remains focused on developing its own technology.

Scale of Apple's talent drain

The scale of talent migration from Apple is believed to be one of the factors behind the lawsuit. According to Gurman, nearly 400 employees have moved from Apple to OpenAI or its hardware efforts, including former Apple design chief Jony Ive, whose AI hardware venture is now closely tied to OpenAI.

The report says OpenAI's aggressive recruitment has forced Apple to rebuild parts of its engineering teams. In response, Apple has reportedly increased retention bonuses and asked senior engineering leaders to personally work on retaining employees in key roles.

Trade secret protection has also become one of Apple's biggest internal priorities in recent months. Gurman notes that the lawsuit has already begun affecting OpenAI's hiring efforts, as Apple employees considering a move may now think twice because of the heightened legal scrutiny.

The report adds that both companies are likely to tighten internal safeguards. Apple is expected to more aggressively protect confidential information, while managers may avoid technical discussions that could expose proprietary details. On OpenAI's side, stricter legal reviews, tighter compliance controls and additional employee training could divert engineering resources away from product development, while senior executives spend time dealing with discovery requests and depositions.

Gurman also suggests that Apple's influence over Asia's vast supply chain could make component suppliers hesitant to work with OpenAI, fearing they could jeopardise longstanding relationships with Apple or become entangled in litigation.

OpenAI's hardware roadmap remains unchanged—for now

Despite the legal dispute, a person familiar with OpenAI's plans told Gurman that the company still intends to unveil its first AI hardware product later this year, with a commercial launch targeted for 2027.

However, those plans could change as OpenAI evaluates Apple's legal claims. While a single flagship device may still arrive on schedule, Gurman notes that a broader lineup—including smart speakers, wearables and an iPhone-like AI device—could become more difficult to develop or launch if the legal battle intensifies.