Apple sues OpenAI over alleged trade secret theft

Apple has filed a lawsuit against OpenAI and two former Apple employees, accusing them of unlawfully using confidential information to develop consumer AI devices, The New York Times reports.

The lawsuit was filed in the US District Court for the Northern District of California. The defendants include former Apple senior engineer Chang Liu, former iPhone and Apple Watch product design vice president Tang Tan, OpenAI, and io Products — the hardware startup acquired by OpenAI for $6.5 billion in 2025.

• According to Apple, OpenAI "systematically" recruited current and former Apple employees to gain access to information about future products, manufacturing processes, suppliers, and hardware development.
• Apple argues that the information may have been used to accelerate OpenAI's own hardware efforts.
• One of the lawsuit's central allegations involves Chang Liu. Apple claims that after joining OpenAI, Liu failed to return his company-issued laptop and later exploited an authentication flaw to gain access to Apple's internal storage systems.
• According to the complaint, Liu downloaded dozens of confidential files related to Apple's hardware development.
• Apple also accuses Tang Tan, who spent 24 years at the company working on the design of the iPhone and Apple Watch before becoming one of OpenAI's hardware executives.
• The lawsuit alleges that before leaving Apple, Tan emailed himself supplier information and internal analysis documents, then used his knowledge of Apple's confidential projects while recruiting employees for OpenAI.
• Apple also claims that Tan asked Apple employees interviewing for OpenAI to bring actual hardware components — including batteries, circuit boards, and other parts — for demonstration during interviews.

The company further alleges that OpenAI contacted Apple's suppliers and relied on confidential information about Apple's manufacturing processes.

Apple notes that more than 400 former Apple employees now work at OpenAI. While it acknowledges that employees are free to move between companies, Apple argues that OpenAI cannot use their access to confidential information to build its own hardware business.

OpenAI denied the allegations.

"We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere," OpenAI spokesperson Drew Pusateri said.

The lawsuit marks a significant escalation in the relationship between Apple and OpenAI. In 2024, the two companies announced a partnership that brought ChatGPT to Apple Intelligence and Siri, allowing iPhone users to access the chatbot through built-in iOS features. Apple now appears to view OpenAI not only as a partner but also as a potential competitor in the emerging AI hardware market.

OpenAI's hardware ambitions became especially visible following its acquisition of io Products, the startup associated with former Apple Chief Design Officer Jony Ive. While Ive is not named as a defendant, he is involved in OpenAI's new hardware initiative. Apple is seeking an injunction preventing OpenAI and the other defendants from using or disclosing its trade secrets, as well as the return of confidential materials and monetary damages.