Apple’s federal trade secret lawsuit against OpenAI centers on allegations that the AI company stole confidential files. But on an episode of Earn Your Leisure, co-host Rashaad Bilal argued the lawsuit could reveal something bigger about Apple’s competitive strategy.
Bilal’s take was that: “Apple suing them about trade secrets tells me a few things. It tells me they know something or they’ve seen something that they want to get ahead of.“ His framing suggests Apple (NASDAQ:AAPL | AAPL Price Prediction) could be looking to defend its consumer hardware business as OpenAI develops its own consumer devices.
Apple Accuses OpenAI of a “Pattern of Theft”
Apple filed suit in federal court in Northern California on July 10, 2026, naming OpenAI, its hardware chief Tang Tan, and former Apple engineer Chang Liu. Apple accuses them of a “pattern of theft” of confidential product development information, alleging OpenAI recruiters encouraged prospective hires to bring “actual parts” from Apple for “show and tell.”
Bilal zeroed in on a specific defendant, former employee Cheng Lu, who allegedly used an authentication bug on an unreturned Apple laptop to download “dozens of highly confidential hardware files including technical specifications for unreleased products,” and left mocking messages for Apple. OpenAI is publicly maintaining its device timeline, telling reporters it plans to announce its first consumer device by the end of 2026 and ship it in 2027.
Is OpenAI’s First Consumer Device Just 3 Months Away?
The Earn Your Leisure segment ties the suit to OpenAI’s delayed IPO and a hardware effort Bilal referred to on air as “Project Sweet Pea,” which he urged listeners to look up. Per the panel, OpenAI is expected to release a smart glass, a digital voice recorder, and a wearable pin in the second half of 2026, with Bilal predicting a hardware product from OpenAI within 3 months. Those claims are speculation, but they align with reporting that Apple’s suit targets OpenAI’s device push.
Jony Ive’s Exit Was a “Declaration of War”
It was discussed that OpenAI may have poached roughly 550 Apple employees, more than the reported 400, citing a contact inside Apple. Bilal flagged Jony Ive’s move from Apple to OpenAI as the signal that matters: “the fact that Jony Ive left tells you that… Apple from an innovation standpoint may be lacking, but OpenAI may be where the future is.”
The discussion then turned to Ive’s exit, which was described as a “declaration of war.” The speakers also suggested Elon Musk repositioned SpaceX as an AI company to attack Sam Altman’s market share, teeing up a possible Apple-SpaceX counter-alliance. Bilal argued SpaceX could position itself as a compute monopoly every major player must route through.
Apple Has 2.5 Billion Devices and $100 Billion to Fight Back
Apple can afford to litigate and build. In its Q2 FY2026 report filed April 30, 2026, Apple posted revenue of $111.184 billion, up 16.6% year over year, with diluted EPS of $2.01, its 8th consecutive quarter beating consensus. Services revenue set an all-time record at $30.976 billion, and the board authorized a $100 billion buyback and a 4% dividend increase.
The distribution advantage is where Apple’s AI story gets interesting. The installed base surpassed 2.5 billion active devices in Q1 FY26, giving Apple Intelligence a delivery channel no rival can replicate overnight. The company’s market cap sits near $4.9 trillion, and the stock is up 22.99% year to date, with Apple briefly overtaking NVIDIA as the world’s most valuable company last week.
What to Watch Next
There are three upcoming events to watch. First, whether OpenAI holds its end-of-2026 device announcement or slips the timeline under legal pressure. Second, whether Apple pairs the lawsuit with a splashy AI acquisition, since Morgan Stanley reiterated its Overweight rating with a $360 price target while flagging that Apple is reportedly hunting chip deals. Third, whether the Apple-SpaceX alignment the panel described shows up in a real commercial announcement. If an alignment materializes, the lawsuit could end up looking more like the opening move as Bilal already thinks it is.
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