Apple’s lawsuit could slow OpenAI’s hardware plans before trial

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Apple’s trade-secret lawsuit against OpenAI may disrupt the AI company’s hardware push long before a judge decides the case.

Bloomberg’s Mark Gurman reports that the case could make it harder for OpenAI to recruit from Apple, add legal checks to its development work, and strain relationships with manufacturers that depend on Apple. OpenAI still reportedly plans to announce its first device this year and release it in 2027, but that schedule may now be harder to hold.

The lawsuit targets OpenAI’s talent and supply chain

Apple’s 41-page complaint, filed on July 10, names OpenAI, io Products, hardware chief Tang Tan, and engineer Chang Liu. Both Tan and Liu previously worked at Apple.

Apple alleges that OpenAI interviewers asked employees to discuss confidential projects and bring prototypes, design files, and actual hardware parts to interviews. It also claims Liu kept an Apple-issued computer, used an authentication flaw after leaving, and downloaded dozens of confidential hardware files while working for OpenAI.

These are allegations, not court findings. OpenAI told the Associated Press that it has no interest in other companies’ trade secrets and is reviewing the filing.

The case puts new pressure on a hardware effort already built around former Apple talent. More than 400 former Apple employees now work at OpenAI, according to Bloomberg, while Jony Ive’s design team is also central to the project. OpenAI’s earlier push to recruit Apple hardware specialists reached into the iPhone design group and Apple’s manufacturing network.

OpenAI could feel the impact before any ruling

A final decision could take years, but recruitment may tighten much sooner. Apple employees considering OpenAI could face more internal scrutiny, while former Apple staff at OpenAI may need to be more careful about discussing previous work. Extra legal reviews, compliance training, and limits on technical interview questions would all take time away from product development.

Suppliers are another risk. Apple has long-standing, high-value relationships across Asia’s consumer-electronics supply chain. Gurman argues that some manufacturers may hesitate to deepen ties with OpenAI if doing so risks an Apple contract or pulls them into the case.

Apple is also seeking an order that would stop OpenAI from possessing, using, or disclosing the disputed information, require the return of Apple materials, and preserve evidence. No judge has granted that relief. If Apple later wins a targeted preliminary injunction, OpenAI may have to separate disputed material from its hardware work and prove its designs were developed independently.

The first OpenAI device is still planned for 2027

A person familiar with OpenAI’s plans told Bloomberg that the company still expects to reveal its first consumer device in 2026 and release it in 2027. OpenAI has not publicly confirmed what that product is, though a simpler non-phone device is expected to arrive before any direct iPhone competitor.

The longer-term roadmap may include speakers, wearables, and a reported AI phone. Apple’s trade-secret case against OpenAI does not automatically block those products, but it forces the company to account for how its designs, manufacturing methods, and supplier knowledge were obtained.

That review could decide whether OpenAI keeps its 2027 timetable or spends the next year separating its hardware plans from Apple’s allegations.

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