Apple just lobbed a legal grenade at OpenAI’s hardware ambitions. The iPhone maker filed a federal trade secrets lawsuit on July 10 in California, alleging that OpenAI and its hardware subsidiary io Products orchestrated a systematic campaign to steal proprietary information, including secrets tied to iPhone manufacturing and unreleased hardware.
The complaint spans 41 pages and names several former Apple employees alongside OpenAI. Apple claims hundreds of its ex-staffers were involved in funneling sensitive information to help OpenAI build consumer AI devices designed to compete directly with the iPhone.
What Apple is actually alleging
The lawsuit centers on OpenAI’s acquisition of io Products, the hardware venture led by legendary Apple designer Jony Ive. OpenAI picked up that company for approximately $6.5 billion in May 2025, a deal that signaled its serious intent to move beyond software and into the device business.
Apple argues that acquisition became a vehicle for something far less innocent than product development. The complaint alleges unauthorized access to Apple’s network and a coordinated effort among former employees to transfer proprietary knowledge to their new employer.
