Apple has filed a law, suit against OpenAI, accusing the artificial intelligence company of engaging in a coordinated effort to steal confidential information and trade secrets related to Apple’s upcoming products and hardware initiatives, Bloomberg reported.
The lawsuit, filed in the Northern District of California, alleges that OpenAI encouraged Apple employees to share sensitive materials, including product details, engineering documents, designs and technical information, as the AI firm works to develop its own range of hardware devices.
Apple has also named Tang Tan, OpenAI’s chief hardware officer, as a defendant. Tan previously served as Apple’s vice president of product design, where he was involved in the development of major products including the iPhone, Apple Watch and AirPods.
OpenAI rejected the allegations, saying the company does not seek trade secrets belonging to other organisations. A spokesperson said OpenAI remains focused on developing technology that benefits users globally.
The legal dispute marks a major shift in the relationship between two companies that had previously worked closely together. OpenAI’s technology powers several features within Apple Intelligence and Siri.
However, tensions between the companies have increased following OpenAI’s acquisition of io Products, an AI hardware startup founded by former Apple design chief Jony Ive and Tan.
Apple said OpenAI has recruited more than 400 former Apple employees and accused the company of using confidential knowledge gained from those employees to strengthen its emerging hardware business.
The iPhone maker alleged that OpenAI employees and business partners had accessed and misused proprietary information related to unreleased technologies.
Apple said it wants OpenAI to stop using the information, destroy any confidential materials obtained and redesign future products if they contain Apple technology.
The lawsuit also names former Apple hardware engineer Chang Liu, who joined OpenAI in January.
Apple alleged that Liu accessed and downloaded dozens of confidential files containing information about unreleased products, technical specifications, engineering presentations and internal project details before leaving the company.
Apple further claimed that OpenAI advised departing employees on how to manage their exits from Apple in a way that allowed continued access to confidential systems and information.
According to Apple, it attempted to resolve the matter privately months ago by asking OpenAI to stop the alleged practices and remove proprietary materials. The company said it received no satisfactory response, forcing it to pursue legal action.
The dispute highlights the intensifying competition among technology giants to develop next-generation AI-powered devices.
Companies including Apple, OpenAI and Meta are investing heavily in products designed for a future beyond traditional smartphones.
Apple is reportedly working on multiple AI-focused devices, including smart glasses, wearable accessories and camera-equipped AirPods, as it seeks to expand its presence in the artificial intelligence era.
Tang Tan had left Apple in 2024 to co-found io Products with Jony Ive and former Apple design executive Evans Hankey.
OpenAI later acquired the startup in a deal reportedly valued at $6.5 billion. Neither Ive nor Hankey has been named in Apple’s lawsuit.
The case underscores the growing importance of AI hardware development and the fierce competition for talent, technology and intellectual property in Silicon Valley.
