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OpenAI Legal Battles: Apple, Musk, Talent Poaching

AppleInsider •
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OpenAI has faced multiple controversies since its founding, with Apple's intellectual property theft suit being the latest chapter. The AI development wave has brought accusations and lawsuits, with Apple central to some and peripheral to others.

Jony Ive left Apple in 2019 to form Love From, later collaborating with Sam Altman on AI hardware. Their startup "io" was sold to OpenAI for $6.5 billion in May 2025, prompting a trademark dispute with "iy O." Meanwhile, Elon Musk sued Apple over App Store rankings, alleging antitrust violations favoring ChatGPT over Grok.

OpenAI aggressively recruited Apple talent, led by Tang Tan, including Cyrus Daniel Irani, Erik de Jong, and Matt Theobald, with stock offers exceeding $1 million. Apple responded with substantial retention bonuses for iPhone hardware engineers. OpenAI also accused xAI of destroying evidence via ephemeral messaging apps, while Apple's motion to dismiss Musk's lawsuit was denied in November 2026.