Apple's AI struggle turns ugly as it sues OpenAI and io, the company founded by iPhone designer Jony Ive
And yes, Elon Musk has weighed in.
For a moment back there, Apple and OpenAI's relationship was looking rosy. When Apple Intelligence was announced in 2024, the company said the improved Siri would be able to use ChatGPT for certain queries. This year, Apple has shifted away from OpenAI, instead integrating Google's Gemini model. And now, the relationship has soured dramatically.
Apple has has accused OpenAI of stealing trade secrets. The Cupertino brand says that OpenAI hired at least two previous Apple employees who continued to access sensitive information whilst working for the AI company.
What makes the claim more extraordinary is that Apple is also suing io Products, Inc, an OpenAI-owned company founded by Jony Ive. Ive famously designed several products during his storied tenure at Apple, including the original iPhone.
The Apple vs OpenAI situation is not normal. This is far bigger than anything we have seen in tech IP battles. Here is the actual story. ↓Apple did not just sue OpenAI. They sued OpenAI, OpenAI Foundation, OpenAI Group, io Products, Tang Tan, and Chang Liu individually.Six…July 13, 2026
Apple has described OpenAI's actions as a "pattern of theft at every level." As reported by Moneywise, Chang Liu, a senior system electrical engineer at Apple for eight years, moved to Apple in January. "He discovered a security bug let him still reach the company's confidential hardware files, and rather than report it, he exploited it and coached a colleague still inside Apple on how to copy materials without tripping the security team." He reportedly sent a message to that employee which read, "LOL, I found out I can access the [network storage], so funny."
Ever since Ive moved to OpenAI, rumours have run rife about whether his next piece of hardware could prove to be the first bonafide iPhone killer. Time will tell if Apple should indeed be worried, but even before the battle begins, the relationship between Apple and OpenAI isn't looking great.
And of course, Elon Musk has weighed in. The Tesla pedlar has very public beef with OpenAI after losing a lawsuit accusing the company of breaching its non-profit contract. "Scam Altman" strikes again, he said in response to news of the Apple lawsuit.
Apple has had a rough ride when it comes to AI. The company's Apple Intelligence rollout turned into a parade of humiliation as the new Siri faced months, then years, of delays. And now, as it turns on OpenAI and Ive's io, things are turning ugly.
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Daniel John is Design Editor at Creative Bloq. He reports on the worlds of design, branding and lifestyle tech, and has covered several industry events including Milan Design Week, OFFF Barcelona and Adobe Max in Los Angeles. He has interviewed leaders and designers at brands including Apple, Microsoft and Adobe. Daniel's debut book of short stories and poems was published in 2018, and his comedy newsletter is a Substack Bestseller.
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