Apple has taken OpenAI to federal court, claiming OpenAI stole iPhone secrets to build its own AI hardware — bad news for OpenAI, which is already short on allies.

• Apple says OpenAI poached former Apple staff and pulled trade secrets from them "at every level" to develop rival consumer devices.
• The nastiest claim: OpenAI's hardware chief Tang Tan, a 24-year Apple veteran, allegedly had job candidates still working at Apple bring real Apple parts to interviews and coached them on how to dodge Apple's security when leaving.
• The two were partners in 2024 when ChatGPT was built into the iPhone, but the deal soured after OpenAI bought Jony Ive's hardware startup for $6.4 billion; Apple's new Siri now runs on Google's Gemini, not ChatGPT.
• The fight is fueled by a brutal talent war — Meta is reportedly paying young AI engineers eye-watering salaries — and both sides are hiring Washington insiders to influence regulators.
• Sam Altman is increasingly isolated, with critics like Elon Musk piling on and few big names willing to defend him; Anthropic is also eating into OpenAI's market share.

Outlook: Expect a long, high-stakes legal and lobbying battle, with the outcome hinging on regulators and how much evidence backs Apple's espionage claims.