Apple's lawsuit against OpenAI is the second time the startup's alliance with a Big Tech giant has ended in acrimony. The Microsoft breakup came first.
Apple sued OpenAI this week, accusing the startup of poaching employees and stealing trade secrets. The suit is the latest sign that OpenAI's partnerships with the largest technology companies tend to end badly.
The complaint, filed in a California state court, alleges that OpenAI hired away key Apple engineers who then brought confidential documents with them. Apple is seeking damages and an injunction. OpenAI has not yet filed a response.
This is not the first time OpenAI has fallen out with a major partner. The company's relationship with Microsoft, which invested $1 billion in 2019 and then a much larger sum in 2023, soured over the course of last year. By April, the two companies had formally ended their exclusive arrangement. That came weeks after reports that Microsoft was considering suing OpenAI for allegedly breaching their contract.
The Apple deal had looked like a coup for OpenAI. In 2024, Apple gave ChatGPT a privileged position on the iPhone, integrating the chatbot into its software. It seemed like a win for both sides. Then OpenAI bought the design firm of former Apple design chief Jony Ive for $6.5 billion and announced plans to build a device that would compete with the iPhone. By May, OpenAI executives were so unhappy with the Apple tie-up that they were reportedly considering suing Apple for breach of contract. Instead, Apple sued first.
The pattern raises questions about OpenAI's ability to maintain strategic alliances. The company has now burned through two of the most powerful partners in technology. Each relationship started with fanfare and ended with litigation or the threat of it.
For other Big Tech executives considering a partnership with OpenAI, the Apple suit adds to a growing list of concerns about the company's leadership. Sam Altman has repeatedly reorganized his executive team. The company is scrambling to catch up to rival Anthropic in the enterprise market. And now it faces a lawsuit from a company that was supposed to be its closest ally.
The Apple lawsuit is in its early stages. A judge has not yet ruled on any motions. The case could take years to resolve. In the meantime, OpenAI's ability to strike new partnerships may be damaged.
OpenAI did not respond to a request for comment on the lawsuit or on its broader relationship with Apple.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.