Apple and OpenAI will face off in a California court on Wednesday over Apple’s claims that the AI startup stole its trade secrets. The hearing marks the first substantive public hearing in a blockbuster legal case that has rocked Silicon Valley. The two tech giants, which struck a high-profile partnership just two years ago to integrate ChatGPT into the iPhone’s operating system, have been embroiled in an increasingly bitter public argument.
Hundreds of former Apple employees have joined OpenAI, which is developing a new personal AI device. OpenAI acquired io, the hardware startup founded by former Apple design chief Sir Jony Ive, for $6.4bn in 2025. Apple claims that OpenAI and two former Apple employees, including OpenAI’s now chief hardware officer Tang Tan, stole trade secrets including confidential product designs and proprietary information about its manufacturing processes.
OpenAI argues that Apple filed a baseless lawsuit to discourage its employees from leaving and has misrepresented legitimate communications and hiring practices. The hearing concerns two separate motions: Apple is asking for an injunction preventing OpenAI from accessing or using its trade secrets, while OpenAI seeks to have the lawsuit thrown out. On Tuesday, the judge partially granted Apple’s request to expedite OpenAI’s handover of some evidence, including organizing depositions of the former Apple employees named in the lawsuit.
OpenAI’s move to compete head-to-head with Apple in the consumer hardware market has complicated their relationship. Apple this year partnered with Google to support its latest AI features. OpenAI has confirmed frustration with limited consumer interest in the iPhone’s ChatGPT integration and Apple’s alleged failure to properly invest in the partnership.
It was contemplating its own legal action shortly before Apple filed the trade secrets lawsuit. OpenAI’s legal battle with the $4.9tn tech company comes as it prepares for a potential public listing as soon as next year. The startup is also facing a separate legal and regulatory backlash over hacking and safety incidents involving its products.
Apple has faced delays to its upgraded Siri voice assistant, which rolled out in beta last month but remains unavailable in the EU due to a regulatory stand-off. Apple has since sent legal warning letters to dozens of its former employees now at OpenAI.
Source: Financial Times Companies · Summarized by HeadlinesBriefing