Apple has sued OpenAI, alleging the ChatGPT maker is tied to the theft of trade secrets connected to AI hardware development.

According to Yahoo Finance, Apple claims a former engineer stole secrets and coached a colleague to do the same before going to work at OpenAI, with Apple pointing to a "LOL ... so funny" message as part of its case. LiveNOW from FOX and Yahoo Finance Canada report the allegations center on trade secrets linked to ChatGPT-related hardware.

Commentators are framing the move as aggressive. The Wall Street Journal and MSN describe it as Apple's "thermonuclear" response to the OpenAI threat, arguing the suit under CEO Tim Cook echoes a familiar Apple playbook: betting that litigation can slow a rival from upending the iPhone era. Crypto Briefing notes the filing comes as Cook plans a 2026 retirement. Firstpost suggests the case could become one of the biggest hardware setbacks yet for OpenAI CEO Sam Altman.

Altman is not backing down. TradingView reports he said he is "not afraid of Apple" following the trade secret lawsuit.

The fight also pulled in Elon Musk. According to PYMNTS, Musk and Altman traded scam accusations after the lawsuit. Moneywise and Yahoo Finance Canada report Musk roasted OpenAI's response, prompting Altman to hit back at Musk with the line, "You're the one selling investors on space datacenters."

Why it matters: the case turns a quiet talent-and-technology rivalry into open legal warfare between the world's most valuable company and the most prominent AI startup, and its outcome could shape who gets to build the next generation of AI-powered consumer devices.