Apple has filed a lawsuit against OpenAI in the U.S. District Court for the Northern District of California. The complaint alleges that former Apple employees stole trade secrets to help develop OpenAI’s AI hardware products, according to a statement Apple provided to 9to5Mac.
The lawsuit was filed on Friday. The primary defendants are Chang Liu and Tang Tan, who were senior Apple employees before joining OpenAI’s hardware team. Apple is seeking injunctive relief and damages.
The company claims it has substantial evidence that OpenAI employees used their former Apple credentials to access the company’s networks and copy confidential files.
What Apple Alleges Against OpenAI and Who Is Named
The lawsuit alleges that OpenAI built its hardware project using confidential information stolen from Apple. The specific claims include that more than 400 former Apple employees, many of whom had access to unreleased Apple products, joined OpenAI.
Among them are Chang Liu, a senior electrical engineer at Apple for eight years before moving to OpenAI in January, and Tang Tan, who helped design the iPod, iPhone, and Apple Watch.
It is alleged that Liu and Tan led a pattern of hiring former Apple employees and advising them on how to extract files and devices while avoiding security measures.
Liu reportedly shared messages celebrating the exploit with a former colleague. The lawsuit also claims that OpenAI misled Apple’s third-party partners into revealing details of manufacturing techniques, suggesting it had Apple’s approval.
Additionally, OpenAI is accused of gathering information about power, batteries, and other components from Apple’s partners. Apple stated that it brought these concerns to OpenAI in February but did not receive a response.
Tang Tan led the design of the iPhone and Apple Watch at Apple before leaving in 2024 to co-found a hardware startup called io with fellow Apple design veteran Jony Ive.
OpenAI later acquired io, which brought Tan into OpenAI’s hardware division. Chang Liu spent eight years at Apple as a senior electrical engineer before joining OpenAI in January 2026.
Both individuals are identified as key figures in a broader pattern of alleged trade secret misappropriation. Apple has not revealed specific charges against individual defendants beyond what is outlined in the complaint.
OpenAI’s Hardware Plans, Past Apple Partnership, and Legal Stakes
The lawsuit comes as OpenAI works on a new hardware platform for its generative AI technology. According to previous reports:
- OpenAI is developing a device without a screen that uses its AI to help users by continuously recording visual and audio data and responding based on the context.
- Sam Altman has said that the device is not intended to replace smartphones, comparing it to how smartphones did not replace laptops.
- OpenAI is also reportedly creating a smartphone mainly for running AI applications, with a possible release around 2028.
The specific hardware, which is said to be built using Apple trade secrets, has not been publicly detailed by OpenAI. The lawsuit from Apple references the io acquisition and OpenAI’s hardware ambitions as the source of the allegedly stolen information.
The lawsuit comes after a previous partnership between Apple and OpenAI that seems to have fallen apart. Apple had integrated ChatGPT into Siri, but the collaboration apparently fell short of OpenAI’s expectations.
Bloomberg reported in May that OpenAI was preparing to take legal action against Apple as the partnership soured. However, Apple’s lawsuit states that its complaint does not involve the ChatGPT-Siri collaboration.
Apple is seeking injunctive relief to stop further use of what it alleges are trade secrets, as well as damages related to the misappropriation.
The company has not revealed the specific amount of damages involved. Cases like this usually involve extensive discovery, expert testimony, and can take several years of litigation.
If Apple wins the case, possible outcomes include OpenAI being required to abandon or significantly redesign hardware products that involve the alleged trade secrets. Apple could also be awarded financial damages.
Additionally, there might be restrictions on former Apple employees working on OpenAI’s hardware projects, along with increased scrutiny of talent movement between major tech companies in the AI hardware space
If OpenAI wins, the company could continue developing the disputed hardware without restrictions. There may also be a public defense of the practice of hiring specialized talent between large tech firms. Furthermore, potential counterclaims could arise related to earlier collaborations between Siri and ChatGPT.
What Users Should Watch as the Apple, OpenAI Lawsuit Moves Forward
Users interested in the AI hardware market should be aware of several developments. There have been updates to the case docket filed with the US District Court for the Northern District of California. OpenAI has issued statements in response to the allegations against it.
Discovery filings may reveal details about OpenAI’s hardware plans as well as confidential information from Apple. Settlement discussions are also possible, which is common in high-profile trade secret cases before a trial.
For consumers considering AI hardware purchases, the lawsuit does not impact current products but could delay or alter the launch of OpenAI’s screenless device or AI-oriented smartphone.
This lawsuit illustrates the broader tensions in the legal landscape surrounding major AI firms. Anthropic has been involved in disputes with the U.S. government over access to Claude Fable 5 and Mythos 5.
Alibaba has restricted Claude Code for employees due to concerns over hidden tracking. Google remains under ongoing regulatory scrutiny. The dispute between Apple and OpenAI introduces a trade secrets aspect to the increasingly complex commercial and legal challenges faced by cutting-edge AI companies.
OpenAI has not publicly commented on the lawsuit. Users can monitor OpenAI’s official channels for updates and check the U.S. District Court for case filings as the situation develops.
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