Key points
- Apple has filed a lawsuit accusing OpenAI of trade secret theft and breach of contract.
- The suit alleges OpenAI recruited Apple employees to obtain confidential information on unreleased products.
- Apple names OpenAI’s Chief Hardware Officer, Tang Tan, and former Apple engineer Chang Liu in the complaint.
- OpenAI denies the allegations, saying it has no interest in competitors’ trade secrets.
Main story
Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of trade secret theft and breach of contract in connection with its efforts to build a hardware business.
The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that OpenAI orchestrated a coordinated effort to obtain Apple’s confidential information by recruiting former employees and encouraging them to disclose proprietary details about unreleased products and technologies.
According to the complaint, the alleged conduct was directed by OpenAI’s senior leadership, including its Chief Hardware Officer, Tang Tan, who spent 24 years at Apple and most recently served as Vice President of Product Design for the iPhone and Apple Watch before joining OpenAI.
Apple alleges that Tan used confidential Apple project code names during recruitment interviews, encouraged job applicants to bring Apple hardware components to interviews, coached departing employees on how to avoid the company’s security procedures and sought information about unannounced products.
The company also named former Apple engineer Chang Liu, alleging that he failed to return an Apple-issued laptop after joining OpenAI in 2026 and used the device to download confidential technical documents before leaving.
Apple said the documents included engineering presentations, technical specifications and proprietary information relating to unreleased technologies, products and internal projects.
The lawsuit further alleges that Liu shared confidential information with other Apple employees seeking employment at OpenAI and advised at least one candidate on interview preparation.
Apple said it wrote to OpenAI in February outlining its concerns but did not receive a response.
The company also alleged that OpenAI and its partners had used Apple’s confidential information during development of their own hardware products, including a proprietary metal-finishing technique.
Apple is seeking a court order preventing OpenAI from using or disclosing its trade secrets, requiring the return of any confidential materials and preserving evidence related to the case.
The lawsuit comes as OpenAI is widely expected to enter the consumer hardware market following its acquisition of former Apple designer Jony Ive’s startup, io, in a deal valued at approximately $6.5 billion.
Responding to the lawsuit, OpenAI rejected the allegations.
In a statement posted on X, the company said: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
The issues
The case highlights growing competition between leading technology companies as artificial intelligence increasingly expands into consumer hardware. It also underscores the importance companies place on protecting intellectual property, employee confidentiality and proprietary product development.
What’s being said
“We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.” — OpenAI
What’s next
The case will proceed through the U.S. federal court system, where the discovery process is expected to determine the extent of the alleged misconduct and the evidence supporting Apple’s claims.
Bottom line
Apple’s lawsuit marks a significant escalation in the rivalry between two of the technology industry’s biggest players as competition intensifies over the future of AI-powered hardware.
