Apple initiated legal proceedings on Friday against OpenAI, accusing the company of stealing trade secrets and breaching contractual agreements.
The iPhone manufacturer claims that this misconduct reflects a systematic pattern of theft among OpenAI employees who were previously affiliated with Apple, under the guidance of senior leadership, notably Chief Hardware Officer Tang Tan.
The lawsuit, lodged in the U.S. District Court for the Northern District of California, alleges that Tan misappropriated Apple’s internal project code names during OpenAI's recruitment efforts. Specific accusations include encouraging candidates to present Apple hardware during their interviews, coaching former Apple employees on how to circumvent security protocols, and soliciting information regarding unreleased Apple products.
Tan, who dedicated 24 years to Apple, most recently served as Vice President of Product Design for both the iPhone and Apple Watch before joining OpenAI.
These allegations emerge amid speculation that OpenAI is working on its inaugural hardware product, which could potentially rival the iPhone. In April, industry analyst Ming-Chi Kuo suggested that this device might be a smartphone leveraging AI agents instead of traditional apps. If accurate, this development poses a significant challenge to Apple’s core hardware market.
Last year, OpenAI acquired the device startup founded by Apple’s former lead designer Jony Ive, known as io, for $6.5 billion as part of its hardware aspirations. While io is mentioned in the lawsuit, Ive is not directly implicated.
The complaint also refers to Chang Liu, another OpenAI employee who transitioned from Apple, alleging that he did not return an Apple-issued laptop upon joining OpenAI in 2026. It is claimed that Liu utilized this laptop to download sensitive Apple documents.
Apple's lawsuit asserts that the acquired documents included data on undisclosed technologies, features, and products, encompassing technical specifications and proprietary engineering presentations. Additionally, Liu is alleged to have shared Apple’s confidential information with other applicants interviewing at OpenAI, providing at least one individual with advice on preparation for their meeting.
In February, Apple sent a letter to OpenAI to express its concerns but reported receiving no response, as stated in the lawsuit.
The case alleges that the actions of these former employees align with OpenAI’s broader strategy to obtain Apple’s confidential information, including requests for designs and prototypes during interviews and inquiries about selection processes for components and vendors.
Apple claims that its ongoing investigation has uncovered evidence indicating that OpenAI and its collaborators may have utilized Apple’s confidential knowledge while developing their hardware product. The filing also mentions a specific proprietary metal finishing technique allegedly applied by OpenAI after misleading a partner into thinking it had Apple's authorization.
In line with the practices of many tech companies, Apple investigates allegations of trade secret theft and other wrongdoing by analyzing communications on company devices and reviewing server logs. By bringing this matter to court, Apple aims to gain insight into the full extent of the alleged misconduct through the legal discovery process.
The company is seeking a court order to prevent OpenAI from using or disclosing its trade secrets, mandate the return of any confidential Apple materials, and ensure the preservation of relevant evidence.
“This represents just the beginning. Apple lacks insight into the activities occurring behind the scenes at OpenAI, where such actions are reportedly normalized at the leadership level,” the filing claims. “Consequently, OpenAI’s emerging hardware business is built on an unstable foundation, undermined by illegal reliance on misappropriated trade secrets.”
In a prepared response, Apple emphasized:
“At Apple, we continuously innovate to develop exceptional products and services, and we place great importance on protecting our intellectual property. Recently, there has been substantial evidence suggesting that OpenAI employees unlawfully took Apple’s confidential information concerning unreleased technologies, processes, and products. We are committed to defending our team's innovations and are taking all necessary measures to do so.”
OpenAI has been approached for comments regarding the lawsuit.
The full filing is available for review, and updates regarding the story will follow as developments occur. The original post went live at 1:32 PM PT.
