Apple sues OpenAI over talent poaching and alleged trade-secret misuse

Apple has filed a lawsuit against OpenAI alleging that the AI startup recruited more than 400 former Apple employees, among them senior designers who worked on the iPhone, Apple Watch and other hardware. The complaint accuses OpenAI of violating trade-secret protections and seeking to leverage Apple’s hardware expertise for its own AI products.

OpenAI, which raised over $100 billion in funding this year, responded that it has "no interest in other companies' trade secrets" and maintains that its hiring practices are lawful. The company’s rapid expansion and high-profile hires have drawn criticism from industry observers who say the move challenges the traditional Silicon Valley model in which startups either remain small niche players or become acquisition targets for larger firms.

Analysts note that the scale of the talent shift from Apple to OpenAI is unprecedented, with senior executives such as former chief designer Jony Ive and longtime hardware leader Tang Tan now working for the AI firm. The lawsuit underscores growing tensions as established hardware manufacturers confront the rapid growth of AI platforms that could reshape consumer devices.

Apple’s legal action seeks injunctive relief to prevent further hiring of its staff and to protect its confidential information, while also demanding damages for alleged misconduct.