Apple Inc.’s trade secrets lawsuit against OpenAI could slow the artificial intelligence company’s hardware ambitions even before the case reaches court, according to a Bloomberg analysis.

Apple alleges OpenAI encouraged former Apple employees and recruits to share confidential information about unreleased products and instructed hires on how to avoid Apple’s security procedures. OpenAI has denied the allegations, saying it has “no interest in other companies’ trade secrets.”

Apple is seeking damages and a court order requiring OpenAI to stop the alleged conduct and destroy any proprietary materials.

Beyond the legal battle, the lawsuit could complicate OpenAI’s recruitment efforts, product development and relationships with suppliers. Analysts say it may also force the company to tighten internal compliance and engineering processes, potentially slowing development of its planned hardware products.

Despite the case, OpenAI still expects to unveil its first hardware product this year and launch it in 2027, according to a person familiar with the matter.