Apple files suit in California
Apple has filed a lawsuit against OpenAI and several former Apple employees in the U.S. District Court for the Northern District of California, alleging a coordinated effort to obtain Apple trade secrets for consumer AI hardware development. The Information reported that the case marks the first public legal clash between the two companies after a sharp deterioration in their relationship.
Apple says more than 400 former Apple employees have joined OpenAI since the company launched its hardware project. The group includes former iPhone product executive and now OpenAI chief hardware officer Tang Tan, along with technical staffer Chang Liu.
Apple says the hiring campaign was systematic
In the complaint, Apple argues this was not ordinary talent movement but a systematic recruiting plan centered on AI hardware. It says Tang Tan was one of the main recruiting figures for OpenAI’s hardware team.
Apple alleges that before leaving the company, Tang Tan discussed supply chain matters with OpenAI or its partners and sent himself Apple supplier information and internal industry material. After joining OpenAI, Apple says he asked some candidates who were still at Apple to describe unpublished products and even bring Apple hardware parts to interviews to obtain more internal information.
Apple also claims OpenAI asked candidates to share research and development information, including product designs, CAD files, prototypes, supplier collaboration methods, and system integration tools. The complaint further alleges that new hires were given advice on how to avoid detection by Apple’s security team.
Those claims come from Apple’s filing and have not been established by a court.
Chang Liu named as a defendant
Apple also named former employee Chang Liu as a defendant. According to the complaint, Liu kept an Apple work computer after leaving the company and used a previously unknown authentication flaw in Apple’s enterprise system to access and download dozens of confidential hardware development files.
Apple says Liu also advised Apple employees being recruited by OpenAI on how to copy internal materials without being detected by Apple’s security team. During its investigation, Apple says it found a broader pattern: some former employees who later joined OpenAI sent Apple internal materials to personal email accounts before leaving, while others used trade secrets they had learned at Apple in OpenAI’s hardware development work.
OpenAI denies interest in rivals’ secrets
OpenAI responded that it has “no interest in other companies’ trade secrets” and remains focused on developing innovative AI technology. Tang Tan and Chang Liu have not publicly responded to the allegations.
The dispute is a sharp turn from two years ago, when Apple integrated ChatGPT into Apple Intelligence and was widely seen as one of OpenAI’s most important partners. The rivalry has now moved from AI software into consumer hardware.
Lawsuit lands as OpenAI expands hardware plans
Apple’s suit comes as OpenAI accelerates its hardware efforts. Last year, OpenAI acquired io Products in an all-stock deal valued at about $6.5 billion. The company was founded by Tang Tan and former Apple chief design officer Jony Ive, and has become a key base for OpenAI’s hardware business.
The Information previously reported that OpenAI has discussed several products with suppliers, including a screenless smart speaker, AI glasses, digital recording devices, and wearables. The first products are planned for launch from late 2026 to early 2027. Apple says in its complaint that OpenAI has hired substantial numbers of Apple hardware employees across product design, disclosure, antennas, supply chain management, and procurement teams.
Apple also alleges that OpenAI misled one Apple supply chain partner into believing it had Apple’s authorization, allowing OpenAI to obtain a metal surface treatment process used internally by Apple.
Claims still face court review
Apple argues that OpenAI’s hardware business was built with heavy reliance on Apple trade secrets. OpenAI, however, has not publicly released any hardware products, and the allegations will need to be tested in court and weighed against evidence.
The report noted that Apple’s intellectual property disputes with companies such as Samsung and Qualcomm have often lasted for years. For an AI company that has secretly filed IPO documents and is preparing to enter the consumer hardware market, the lawsuit adds legal and compliance uncertainty.