OpenAI rejects Apple trade secret claims over hardware project
OpenAI has dismissed a trade secret lawsuit from Apple, signaling an escalating battle between the two tech giants as the AI startup pushes into hardware that could threaten Apple’s core market.
OpenAI formally rejected allegations made by Apple in a California trade secret lawsuit, stating it sees no evidence to support the iPhone maker's claims. The dispute centres on accusations that OpenAI systematically acquired confidential information and intellectual property through former Apple employees.
Apple filed the 41-page complaint on Friday in the U.S. District Court for the Northern District of California. The legal action targets OpenAI leadership, specifically Chief Hardware Officer Tang Tan, a 24-year Apple veteran who previously served as vice president of product design for the iPhone and Apple Watch. Apple claims its internal investigation found evidence that OpenAI and its partners used this confidential data to develop their own hardware.
In its first direct comment on the substance of the case, OpenAI pushed back firmly. “While we take these allegations seriously, we’re not aware of any evidence that this complaint has merit,” the company said. “We believe in fair competition and allowing people the freedom to work wherever they choose, and we’re focused on building innovative technology that empowers people everywhere.”
The legal clash highlights a deepening strategic rivalry between the established consumer electronics giant and the leading AI laboratory. OpenAI's recent acquisition of Jony Ive’s startup io indicates a clear pivot toward physical devices, moving beyond its core software business to compete directly in the consumer electronics sector.
According to a Tuesday report by Bloomberg, OpenAI is developing a mobile, screen-free smart speaker. The device is designed to act as a “humanlike AI companion” for the home, complete with moving mechanical elements. Crucially, the hardware is being built with input from several former Apple engineers who previously worked on the iPhone and Mac.
For European investors monitoring the transatlantic AI race, this lawsuit underscores the high stakes of the shifting hardware landscape. If OpenAI successfully brings a competitive home device to market, it could disrupt the smart speaker ecosystem and challenge Apple's market share in premium consumer electronics.
Apple’s aggressive legal posture reflects its determination to protect the proprietary design processes that insulate its hardware business. Earlier, when the lawsuit was filed, OpenAI told TechCrunch: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
