Apple's lawsuit against OpenAI will likely lead to an even stronger relationship between the iPhone maker and Google.
Apple filed a lawsuit on Friday against OpenAI alleging that the ChatGPT parent stole trade secrets and confidential information from the tech hardware giant. This comes as OpenAI is looking to launch its own hardware following its purchase of io -- a company founded by former Apple design lead Jony Ive and two other ex-Apple employees -- last year.
"OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," says the complaint, which was filed in the Northern District of California.
OpenAI has said in a statement that it has no interest in other companies' trade secrets, and "we remain focused on building innovative technology that empowers people everywhere."
This news is another obstacle in what has already been a rocky relationship between Apple and OpenAI. That's likely good news for Alphabet's Google.
Apple has had enduring success in its consumer hardware businesses. But it has failed to impress both customers and Wall Street with its artificial-intelligence offerings. The company has entered partnerships with outside AI firms to help push forward the tech on its devices: Enter OpenAI and Google.
"Remember, Apple is 'just' a consumer electronics company. It's AI will be someone else's," says Paul Meeks, head of technology research at Freedom Capital Markets.
Apple announced its partnership with OpenAI in June 2024. Through this deal, Apple said it would integrate ChatGPT into experiences with its ecosystem.
But the relationship between these two tech behemoths has seemed to be on unstable ground for some time now. Bloomberg reported in May that OpenAI wasn't happy with the outcome of its partnership with Apple. According to the report, OpenAI felt that Apple's use of OpenAI technology across its operating systems was limited.
Meanwhile, Apple has been pushing ahead with its AI partnership with Google. Apple and Google announced in January that the next generation of Apple Foundation Models would be based on Google's Gemini models and cloud technology. Then Apple showed off its AI-powered Siri at the Worldwide Developers Conference in June, which the company said was powered by the next generation of Apple Foundation Models and custom-built with Google and its Gemini models.
Apple and Google's partnership goes way back. Google has paid Apple an estimated $20 billion a year to make Google the default search engine on Safari.
Apple is likely to rely even more on Google now that its relationship with OpenAI is so damaged.
"I think the Apple, OpenAI partnership is over. The former took an aggressive and rare step for them of which they fully knew this would be the consequence," Meeks said, adding that the "the bad blood between Apple and OpenAI plays into Google's hands."
Write to Angela Palumbo at angela.palumbo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 13, 2026 16:24 ET (20:24 GMT)
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