Apple has filed a sweeping lawsuit against OpenAI, accusing the AI company of orchestrating a sustained effort to obtain confidential Apple technology as it expands into consumer hardware.
The lawsuit, filed in the US District Court for the Northern District of California, names OpenAI, its recently acquired hardware business io Products, OpenAI Chief Hardware Officer Tang Tan and technical staff member Chang Liu.
Apple alleges the defendants improperly obtained confidential information covering unreleased products, engineering processes, manufacturing techniques and supplier relationships.
The legal action is a clear reversal in the relationship between the two companies. Apple and OpenAI announced a partnership in 2024 that integrated ChatGPT into Apple’s operating systems, but that relationship has since deteriorated. Apple’s latest Siri AI rollout instead relies on Google’s Gemini technology.
Names Former Apple Employees
According to the lawsuit, Tang Tan, who spent 24 years at Apple before becoming OpenAI’s chief hardware officer, emailed supplier information and internal industry materials to himself before departing the company.
Apple also claims Tan instructed Apple employees interviewing with OpenAI to bring physical hardware components, prototypes and other confidential materials to interviews. The company alleges these meetings were intended to gather proprietary information that could aid OpenAI’s hardware development.
Apple separately accuses Chang Liu of accessing Apple’s internal systems after his employment ended. The complaint alleges Liu exploited an authentication flaw to obtain confidential engineering files that included unreleased hardware, technical specifications and project documentation.
Apple also claims Liu advised another former Apple employee on methods of transferring sensitive files while avoiding the company’s security monitoring systems.
Beyond the actions of individual employees, Apple argues the conduct reveals a larger corporate strategy. “This is the tip of the iceberg,” the lawsuit claimed.
The complaint alleges OpenAI encouraged departing Apple employees to preserve confidential information, requested materials such as computer-aided design files and hardware prototypes during recruiting, and sought to make use of Apple’s supplier network as it built its own hardware business. Apple claims more than 400 former Apple employees now work at OpenAI. The lawsuit also states Apple contacted OpenAI in February to raise concerns, but says the company received no response.
Apple contends the dispute gained urgency after OpenAI expanded beyond software. Last year, OpenAI acquired Jony Ive’s hardware startup, IO Products, in a deal valued at approximately $6.5 billion, placing former Apple executives in key leadership positions for its emerging device business. Jony Ive is not named in the suit.
OpenAI rejected Apple’s allegations. A company spokesperson, Drew Pusateri, reportedly said that OpenAI has no interest in other companies’ trade secrets, and that OpenAI remains focused on developing technology that benefits users.
This is not the first conflict between the companies. Reports indicate OpenAI had considered sending Apple a breach-of-contract notice over the companies’ AI partnership, arguing the integration failed to deliver the customer growth it anticipated.
Apple is seeking monetary damages along with court orders preventing OpenAI from using or retaining any confidential Apple information. The company argues its decades of investment in hardware design and supply chain development gave it a competitive advantage that cannot legally be replicated through the acquisition of proprietary information.