Taylor Lorenz’s Power User
Taylor Lorenz’s Power User

OpenAI Could Lose Everything w/ Alex Kantrowitz

July 22, 2026

AI Summary

5 min read

For a company that has spent years positioning itself as the vanguard of artificial intelligence, OpenAI’s hardware ambitions have been remarkably slow to materialize. The company acquired Jony Ive’s design firm I.O. for $6.5 billion in May 2025, bringing on Apple’s legendary former design chief to build the physical companion to its chatbot. But nearly a year later, no prototype has leaked, no design has surfaced, and the only concrete evidence of progress is a lawsuit. In late June 2025, Apple filed a shockingly detailed complaint accusing OpenAI of orchestrating a campaign to poach 400 Apple employees and, far more damaging, of using those employees to access and download Apple’s confidential hardware roadmaps. The case offers a rare window into the extraordinary—and apparently reckless—lengths companies will go to secure an edge in the AI hardware race.

Why OpenAI wants a device at all

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What you'll learn

  • 1 OpenAI Could Lose Everything w/ Alex Kantrowitz
  • 2 Taylor Lorenz’s Power User
  • 3 (02:03) **The AI Arms Race Shifts to Hardware** - The competition is no longer just about building smarter models, but who controls the future of computing, with Apple suing OpenAI over alleged employee poaching and corporate sabotage.
  • 4 (03:09) **OpenAI's Hardware Ambitions Begin** - OpenAI's push into hardware started with the realization that they have the key AI ingredient for voice-based devices, following the path of Amazon Echo, Apple HomePod, and Google Home.
  • 5 (04:52) **The Johnny Ive Acquisition** - OpenAI acquired Ive's company IO for $6.5 billion a year ago to design a family of AI devices, but progress has been slow with no leaked prototypes or concrete designs.
  • 6 (06:57) **Apple's AI Device Struggle** - Apple Intelligence has been "terrible" and failed to ship properly, but recent WWDC updates using Google's technology show some progress, positioning Apple as a potential AI device shipper before OpenAI.
  • 7 (10:05) **Genesis of the Lawsuit** - Apple alleges OpenAI orchestrated a campaign to poach 400 Apple employees, including hardware engineers who reported directly to incoming CEO John Ternus, threatening Apple's AI future.

+ Full timestamped outline available in the app

Guests on this episode

Alex Kantrowitz

Show Notes

🚨 Apple is officially suing OpenAI and the allegations are insane. 🚨

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In what might be the most shocking Silicon Valley lawsuit of the year, Apple has accused OpenAI of corporate sabotage, trade secret theft, and orchestrating a massive campaign to poach over 400 former Apple employees to build its secret AI hardware division. From ex-employees using security bugs to access secret Apple folders, to candidates allegedly bringing physical Apple prototypes to job interviews for "show and tell", this legal battle gives us a rare, cutthroat look at the AI hardware arms race.

In this episode of Power User, I sat down with tech reporter and Big Technology founder Alex Kantrowitz to break down everything you need to know about the Apple vs. OpenAI lawsuit. Will this kill OpenAI's hardware ambitions and ruin its upcoming IPO? Will we ever actually get a ChatGPT phone? And why is Apple taking such aggressive legal action now? We break down why this isn't just another tech lawsuit, it's literally a fight over who will own the future of AI.

We discuss:

  • Why OpenAI hired Jony IveWhether an OpenAI phone is actually coming
  • The future of AI glasses, AI pins, and wearable devices
  • Why Apple may be trying to stop OpenAI before it can compete
  • The race to control the next generation of computing
  • Whether AI hardware is the future or another Silicon Valley flop
  • Why OpenAI tried to copy Apple's hardware roadmap instead of building from scratch.
  • How this lawsuit could cripple OpenAI's valuation and delay its IPO.
  • The future of AI hardware: AI pins, smart glasses, or will the iPhone remain king?
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