Apple filed a federal lawsuit Friday against OpenAI, alleging the AI lab systematically stole trade secrets through former employees and job candidates in order to build its own consumer hardware, naming OpenAI's hardware chief and IO Products as defendants.
Apple filed a lawsuit against OpenAI in federal court in Northern California on Friday, alleging that the artificial intelligence lab systematically stole trade secrets and confidential information in order to develop its own consumer hardware.
"This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information," Apple said in the legal filing.
The suit marks a sharp reversal for the two companies, which formed a high-profile partnership in 2024 when ChatGPT was integrated into the iPhone's operating system. OpenAI CEO Sam Altman visited Apple's headquarters for that announcement.
Relations between the two deteriorated after OpenAI moved to enter the hardware market, acquiring former Apple designer Jony Ive's startup IO Products for $6.4 billion last year. IO Products is also named as a defendant in the lawsuit.
Central to Apple's allegations is Tang Tan, OpenAI's chief hardware officer and a former Apple vice president, who is named as a defendant. Apple alleges that Tan directed Apple employees interviewing at OpenAI to bring proprietary information into the process.
"He has directed job candidates still working for Apple to bring 'actual parts' from Apple to their interviews for 'show and tell' sessions in which he and his team at OpenAI can elicit still more Apple confidential information," Apple said in the filing.
Apple also named Chang Liu, a former employee who joined OpenAI, alleging that Liu stole an Apple laptop. The company further alleged that OpenAI coached departing Apple staff on how to circumvent security protocols upon exit.
In addition, Apple said it believes OpenAI has been directing hardware manufacturing partners to use a metal finishing technique that Apple invented, while "misleading the partner to believe they had Apple's permission to do so."
"Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes, and products," an Apple representative said in a statement.
OpenAI denied the allegations. "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere," an OpenAI representative said in a statement.
Apple has since distanced itself from OpenAI in other ways. The updated version of its Siri assistant, due this fall, is built on Google's Gemini AI models rather than OpenAI's technology. Apple declined to say whether the lawsuit would affect the existing ChatGPT integration within Apple Intelligence.
The legal action arrives at a difficult moment for OpenAI. The company confidentially filed its IPO prospectus with regulators in June, though it has not disclosed a debut date and is reportedly delaying until next year. OpenAI carries a valuation of $852 billion and is under pressure to justify that figure amid rising competition from rivals including Anthropic, Google, and a growing field of open-weight AI models from Chinese labs.
The Apple suit also comes roughly two months after OpenAI prevailed in a separate high-profile trial. A federal jury in Oakland found that Elon Musk, a co-founder of OpenAI, had waited too long to sue the company over claims that Altman and co-founder Greg Brockman reneged on commitments to keep it a nonprofit. Musk said he would appeal that verdict.
Apple is seeking damages, injunctions, and a court order compelling OpenAI to stop using its trade secrets. With an IPO on the horizon, the mounting legal exposure — now including one of the world's most valuable companies as an adversary — represents a significant new risk for Altman's organization to navigate before reaching public markets.
Marc Sabatini is a staff writer at TechEchelon covering enterprise software, cybersecurity, and the regulatory beats that shape both. He focuses on the deal flow and policy decisions that move markets.
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