Apple has filed a lawsuit against OpenAI in a California federal court, accusing the artificial intelligence company and two former Apple employees of misappropriating confidential information and trade secrets to support OpenAI’s growing consumer hardware ambitions. The legal action marks a significant deterioration in the relationship between the two technology giants, which had partnered in 2024 to integrate ChatGPT into Apple’s ecosystem but have increasingly emerged as competitors in the race to develop next-generation AI-powered devices.
According to the complaint, Apple alleges that OpenAI knowingly benefited from confidential information taken by former employees who had worked on some of the company’s most sensitive hardware projects. The iPhone maker claims that its proprietary designs, engineering processes, manufacturing techniques and supplier relationships constitute some of its most valuable intellectual property and that these trade secrets are critical to maintaining its competitive advantage in the global technology market. Apple argues that unauthorized access to such information could provide competitors with an unfair shortcut in developing rival products.
The lawsuit specifically names former Apple employees Tang Yew Tan and Chang Liu. Tan, who spent nearly 24 years at Apple and most recently served as Vice President of Product Design for the iPhone and Apple Watch, later joined OpenAI as its Chief Hardware Officer. Apple alleges that before leaving the company, Tan held discussions with OpenAI and its affiliates while still employed at Apple and maintained contact with key suppliers associated with Apple’s hardware operations. The complaint further claims that during recruitment interviews, Tan encouraged Apple employees seeking jobs at OpenAI to bring physical hardware components and confidential information to discussions, enabling OpenAI to gain insights into Apple’s unreleased technologies.
Apple has also accused Chang Liu, who worked as a Senior System Electrical Engineer for eight years, of retaining an Apple-issued laptop after leaving the company and continuing to access confidential internal information. According to the lawsuit, Liu exploited a software vulnerability to obtain engineering documents, technical specifications, manufacturing data and presentations related to unreleased Apple products even after joining OpenAI. Apple alleges that Liu also advised another Apple employee interviewing with OpenAI on how to access confidential material while avoiding detection by Apple’s internal security systems.
The complaint further alleges that the misconduct extends beyond individual employees and reflects a broader institutional effort by OpenAI to acquire Apple’s confidential information. Apple claims that OpenAI, along with io Products—the hardware startup founded by former Apple design chief Jony Ive and later acquired by OpenAI—used former Apple personnel and industry contacts to approach Apple’s trusted manufacturing partners in an effort to accelerate the company’s planned entry into the consumer hardware market. Apple describes the alleged conduct as part of a coordinated strategy involving multiple individuals and business associates.
Apple says more than 400 former employees now work at OpenAI, making it essential for the AI company to ensure that proprietary Apple information is not brought into its operations. The lawsuit claims Apple had previously raised concerns directly with OpenAI and requested an internal investigation, but alleges the company failed to respond. As a result, Apple has asked the court to issue preliminary and permanent injunctions preventing further use of its trade secrets, while also seeking monetary damages for what it describes as willful and malicious misappropriation of confidential information.
OpenAI has denied any intention to misuse competitors’ proprietary information. In its initial response, the company said it has no interest in other organizations’ trade secrets and remains focused on building innovative AI technologies responsibly. OpenAI indicated it is reviewing Apple’s allegations and intends to defend itself against the claims in court.
The lawsuit is being closely watched across the technology industry as it unfolds against the backdrop of an increasingly competitive AI landscape. With OpenAI investing heavily in AI hardware following its acquisition of io Products and Apple accelerating its own artificial intelligence initiatives, the dispute underscores the high stakes surrounding intellectual property, talent recruitment and technological innovation. Legal experts believe the outcome could have significant implications for how major technology companies recruit employees, safeguard confidential information and compete in the rapidly evolving AI hardware market.
