Apple has filed a lawsuit against OpenAI in the United States District Court for the Northern District of California. The complaint alleges that former Apple employees stole trade secrets to help develop OpenAI’s artificial intelligence hardware products, according to a statement Apple provided to 9to5Mac.
The lawsuit was filed on Friday. The main defendants are Chang Liu and Tang Tan, who were senior Apple employees before joining OpenAI’s hardware team. Apple seeks injunctive relief and damages.
The company claims it has substantial evidence that OpenAI employees used their previous Apple credentials to access company networks and copy sensitive 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. Specific claims include that more than 400 former Apple employees, many of whom had access to unreleased Apple products, joined OpenAI.
They include 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.
Liu and Tan are alleged to have led a pattern of hiring former Apple employees and advising them on how to extract files and devices while bypassing 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 collecting information about power, batteries, and other components from Apple partners. Apple stated that it raised these concerns with OpenAI in February but received no response.
Tang Tan led iPhone and Apple Watch design at Apple before leaving in 2024 to co-found a hardware startup called io with fellow Apple design veteran Jony Ive.
OpenAI subsequently acquired io, bringing Tan to 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 disclosed specific charges against the individual defendants beyond what is outlined in the complaint.
OpenAI hardware plans, previous partnership with Apple and legal risks
The lawsuit comes as OpenAI works on a new hardware platform for its generative AI technology. According to previous reports:
- OpenAI is developing a screenless device that uses its AI to assist users by continuously recording visual and audio data and responding based on 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 primarily to run AI applications, with a possible launch around 2028.
OpenAI has not publicly detailed the specific hardware, which is said to be built using Apple trade secrets. Apple’s lawsuit references OpenAI’s io acquisition and hardware ambitions as the source of the allegedly stolen information.
The lawsuit comes after a previous partnership between Apple and OpenAI appears 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 deteriorated. However, Apple’s lawsuit claims that its complaint does not involve the ChatGPT-Siri collaboration.
Apple is seeking injunctive relief to stop future use of what it alleges are trade secrets, as well as damages related to misappropriation.
The company has not disclosed the specific amount of damages involved. Cases like this often 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 involving the alleged trade secrets. Apple could also receive damages.
Additionally, there could be restrictions on former Apple employees working on OpenAI 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 among large technology companies. Additionally, potential counterclaims could arise related to previous collaborations between Siri and ChatGPT.
What users should watch as the Apple and OpenAI lawsuit progresses
Users interested in the AI hardware market should be aware of several developments. There have been updates to the case file filed in the U.S. District Court for the Northern District of California. OpenAI has issued statements in response to the allegations against it.
The discovery filings may reveal details about OpenAI’s hardware plans, as well as confidential Apple information. Settlement discussions are also possible, which is common in high-profile trade secret cases before trial.
For consumers considering purchasing AI hardware, the lawsuit does not affect current products, but could delay or alter the launch of OpenAI’s screenless device or AI-oriented smartphone.
This lawsuit illustrates broader tensions in the legal landscape surrounding major AI companies. Anthropic has been involved in disputes with the United States government over access to Claude Fable 5 and Myths 5.
Alibaba has restricted Code Claude for employees due to concerns about hidden tracking. Google remains under continued regulatory scrutiny. The dispute between Apple and OpenAI introduces a trade secrets aspect to the increasingly complex business and legal challenges facing cutting-edge AI companies.
OpenAI has not commented publicly on the lawsuit. Users can monitor official OpenAI channels for updates and check the US District Court for case filings as the situation develops.
