Apple sues OpenAI over alleged trade secret theft in development of mobile AI speaker

1. OpenAI Hardware Development

OpenAI is reportedly developing its first hardware device, described as a screenless, mobile smart speaker. Designed to function as a "humanlike AI companion" for the home, the device is intended to be a physical manifestation of ChatGPT. It is expected to feature mechanical elements that allow it to move independently and will be capable of learning from a user's digital life, such as emails, to provide personalized assistance. The project is being developed with the help of several former Apple engineers.

2. Apple Trade Secret Lawsuit

The development of this hardware has become the subject of a legal dispute. On July 10, 2026, Apple filed a lawsuit in the U.S. District Court for the Northern District of California, accusing OpenAI of trade secret theft. Apple alleges that former employees, including OpenAI’s Chief Hardware Officer Tang Tan, engaged in a coordinated effort to misappropriate confidential information and intellectual property to assist in OpenAI’s hardware efforts. Apple claims this lawsuit represents only the beginning of its findings regarding misconduct.

3. OpenAI Response and Industry Context

OpenAI has formally denied the allegations, stating that it is unaware of any merit to Apple’s complaint and emphasizing its commitment to fair competition. The company maintains that it has no interest in utilizing the trade secrets of other firms. Meanwhile, the broader tech industry is seeing increased investment in consumer AI hardware, with companies like Hark raising significant capital to develop proprietary AI models paired with custom hardware interfaces.