Apple Inc. filed a lawsuit on Friday in the U.S. District Court for the Northern District of California accusing OpenAI, io Products, OpenAI Chief Hardware Officer Tang Tan, and former Apple engineer Chang Liu of trade secret misappropriation and breach of contract [Source: CNN Business]. The suit alleges a coordinated campaign to steal information about upcoming products, with Apple stating that 'significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes, and products' [Source: CNBC]. Apple further alleged that 'at every level, from Technical Staff to its Chief Hardware Officer, OpenAI has been stealing Apple's trade secrets and confidential information' [Source: CNBC].
Apple's complaint sets out specific allegations against both individual defendants. The company alleges that Tan directed job candidates who were still employed at Apple to bring 'actual parts' from the company to interviews for 'show and tell' sessions [Source: CNBC]. Apple further alleges Tan retained an internal Apple 'Need to Know' offboarding document describing security procedures for departures and shared it with new OpenAI hires [Source: MacRumors]. The suit also alleges OpenAI asked hardware partners to carry out a proprietary metal-finishing technique Apple invented, misleading the partner into believing they had Apple's permission [Source: CNBC]. With respect to Liu, who left Apple for OpenAI in January 2026, Apple alleges he failed to return an Apple-issued laptop and used it to download dozens of confidential hardware-related files, including information about unreleased products, engineering presentations, technical specifications, and proprietary project data [Source: CNN Business]. Apple said it first contacted OpenAI in February to raise its concerns but never received a response. The company is seeking a preliminary and permanent injunction to bar OpenAI from using or disclosing its trade secrets and to force the return of confidential materials.
The lawsuit arrives against a fractured backdrop between the two companies. Apple and OpenAI entered into a partnership in 2024 when ChatGPT was integrated into the iPhone's operating system, but the relationship has since deteriorated. Apple's updated version of Siri, due this autumn, is based on Google's Gemini AI models rather than OpenAI's technology. In May, Bloomberg reported that OpenAI had been considering legal action against Apple, potentially alleging breach of contract over claims Apple had not sufficiently integrated and promoted OpenAI's products.
OpenAI's ambitions in consumer hardware provide the broader context for the allegations. OpenAI acquired Jony Ive's device startup io in a $6.5 billion deal to build out its hardware capabilities [Source: TechCrunch], and Sam Altman said in November that OpenAI had finished its first hardware prototypes [Source: CNBC]. Tan spent 24 years at Apple before joining OpenAI, most recently serving as vice president of product design for the iPhone and Apple Watch [Source: TechCrunch]. Apple noted that more than 400 former Apple employees now work at OpenAI [Source: MacRumors]. Jony Ive, Apple's former chief design officer, was not named as a defendant in the suit. The lawsuit comes as OpenAI prepares for what is expected to be a historic initial public offering.
Sources: Bloomberg, CNN Business, CNBC, MacRumors, TechCrunch, Washington Examiner