Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of misappropriating trade secrets connected to the development of future AI hardware. The complaint, submitted to the U.S. District Court for the Northern District of California, alleges trade secret misappropriation and breach of contract, marking a significant legal dispute between two companies that recently worked together on AI integration.
Apple’s Allegations Against OpenAI
According to the lawsuit, Apple claims confidential internal information was improperly obtained and used as OpenAI expanded its hardware efforts alongside former Apple design chief Jony Ive. OpenAI acquired Ive’s startup, io Products, last year, and the company has been developing an AI-focused hardware device that had been expected to launch later this year. The legal action could disrupt that timeline and may also complicate OpenAI’s broader business plans, including its anticipated initial public offering.
Apple’s complaint names two former employees who now work at OpenAI: Chang Liu, a former Apple engineer, and Tang Tan, OpenAI’s hardware chief, who previously led the design of products including the iPhone and Apple Watch.
Apple alleges that Liu failed to return a company-issued laptop after leaving the company, later accessed a former colleague’s work computer, and downloaded dozens of confidential files containing unreleased hardware information and technical specifications. The lawsuit also alleges that Tan used confidential company information during recruitment efforts and shared details about Apple’s supplier relationships before his departure.
The hiring activity reflects OpenAI’s broader hardware expansion. According to CNN’s review of LinkedIn profiles, the company has hired at least 10 engineers directly from Apple, illustrating its growing investment in hardware talent. The lawsuit, however, focuses specifically on Apple’s allegations regarding confidential information rather than the recruitment of former employees itself.
Apple’s Position
In a statement referenced in the court filing, Apple said it takes protecting its intellectual property and the work of its engineering teams “very seriously.” The company further claims it raised its concerns with OpenAI during the course of its investigation but did not receive a response before filing the lawsuit.
OpenAI Responds
OpenAI has denied the allegations. Company spokesperson Drew Pusateri said OpenAI has “no interest in other companies’ trade secrets” and remains focused on developing innovative technology.
The case has drawn significant attention across the technology industry, with outlets such as GrowBusinessMag noting its potential implications for companies investing in AI hardware and engineering talent.
A Changing Relationship Between Apple and OpenAI
The lawsuit represents a sharp turn in the relationship between the two companies. In 2024, Apple partnered with OpenAI to integrate ChatGPT into Apple products as part of its broader artificial intelligence strategy. More recently, reports indicated the partnership had become more complicated, with OpenAI reportedly considering its own legal action over Apple’s implementation of its technology.
At the same time, OpenAI has continued expanding its hardware division by recruiting former Apple engineers, highlighting its ambition to develop products beyond software and AI services.
What Happens Next?
The outcome of the lawsuit could influence more than the relationship between Apple and OpenAI. It may also shape how technology companies approach the protection of proprietary information while competing for experienced engineering talent in the rapidly evolving AI sector.
Court proceedings will determine whether Apple’s allegations can be substantiated and whether any confidential information was improperly used. Until then, uncertainty remains around the timeline for OpenAI’s planned AI hardware products and the broader implications for future collaborations between major technology companies.
Outlook
As the case moves through the court system, attention will remain on future filings, responses from both companies, and whether the dispute affects OpenAI’s hardware roadmap. The proceedings may also provide a closely watched example of how intellectual property disputes are handled as competition in AI hardware continues to intensify.
