Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of obtaining confidential information through former Apple employees as competition between the two firms expands from software into consumer hardware.
The case, filed in federal court in California on Friday, names OpenAI, hardware company io Products and two former Apple engineers. Apple alleges the defendants took confidential product designs, manufacturing information and supplier data linked to unreleased devices and used that knowledge to support OpenAI’s hardware programme.
The lawsuit marks a break in relations between two companies that worked together on artificial intelligence features for Apple devices. ChatGPT became part of Apple’s software ecosystem in 2024, but Apple has since shifted many of its latest AI services to Google’s Gemini platform while OpenAI has expanded its own hardware ambitions.
Apple said the legal action followed an internal investigation launched earlier this year.
“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 spokesperson said.
The company said it raised its concerns with OpenAI in February but received no response before filing the lawsuit.
OpenAI rejected the allegations.
“We have no interest in other companies’ trade secrets,” company spokesperson Drew Pusateri said. “We remain focused on building innovative technology that empowers people everywhere.”
Apple alleges OpenAI pursued an organised effort to recruit engineers with access to confidential projects. According to the complaint, more than 400 former Apple employees now work at OpenAI, reflecting what Apple describes as an aggressive hiring campaign aimed at strengthening the company’s hardware division.
Among those named in the lawsuit is Tang Tan, Apple’s former vice-president of product design for the iPhone and Apple Watch. Tan spent 24 years at Apple before joining Jony Ive’s hardware venture, io Products, which OpenAI acquired for $6.4 billion last year. Tan now serves as OpenAI’s chief hardware officer.
Apple claims Tan retained confidential information about suppliers before leaving the company and later used that knowledge while recruiting Apple staff. The lawsuit alleges candidates interviewing with OpenAI were encouraged to bring Apple components to interviews for “show and tell” sessions.
Another former employee, Chang Liu, is accused of failing to return at least one company device after leaving Apple. The lawsuit claims Liu continued accessing Apple’s internal systems after his departure and downloaded confidential hardware files through what Apple describes as a vulnerability in its network.
Apple also alleges Liu encouraged another departing employee to copy files while avoiding the company’s internal security systems.
The company argues these actions formed part of a wider effort to obtain commercially valuable information related to unreleased products, manufacturing methods and supplier relationships.
OpenAI has not responded publicly to the detailed allegations contained in the complaint beyond denying any interest in competitors’ trade secrets. The company said it is reviewing the filing.
Apple is asking the court to order OpenAI and the individual defendants to return any confidential information belonging to Apple, preserve evidence linked to the case and stop using any trade secrets obtained through former employees. The company is also seeking financial damages, with the amount to be determined during the legal proceedings.
HT