Apple accuses OpenAI of using stolen trade secrets to create its upcoming AI gadgets in new lawsuit

Apple Files Lawsuit Against OpenAI Over Alleged Trade Secret Theft for AI Hardware

A Legal Battle Over Innovation and Intellectual Property

Apple accuses OpenAI of using stolen – On Friday, Apple initiated formal legal proceedings against OpenAI, accusing the artificial intelligence firm of appropriating valuable trade secrets to develop its own upcoming hardware products. The complaint, lodged within the District Court of Northern California, outlines serious allegations of both trade secret misappropriation and breach of contractual obligations. This legal action comes as OpenAI prepares to unveil a secretive device intended to revolutionize how smartphone users interact with artificial intelligence.

The lawsuit suggests that OpenAI has been actively recruiting talent and gathering critical information from Apple to fuel its hardware ambitions. Central to these claims is the revelation that OpenAI has been collaborating with a former design leader from Apple on a confidential project. While the new gadget is slated for release later this year, the timing of this legal dispute may significantly disrupt OpenAI’s launch schedule. Furthermore, the litigation introduces uncertainty regarding OpenAI’s plans for a highly anticipated initial public offering, which could face delays or complications due to the ongoing legal scrutiny.

Key Figures and Specific Allegations

The legal document identifies several individuals and entities as defendants. Alongside OpenAI itself, the suit names Chang Liu, a former Apple engineer, and Tang Tan, who currently serves as the hardware chief at OpenAI. Tan previously held a prominent role in product design for both the iPhone and Apple Watch. Additionally, io Products, a company established by Jony Ive—the iconic design chief who departed Apple in 2019—is listed as a defendant. Notably, while Ive is associated with io Products, he is not personally named as a defendant, nor is he accused of any misconduct in the filing.

Apple’s complaint details specific actions taken by Liu and Tan that allegedly facilitated the theft of proprietary information. According to the suit, Liu departed Apple in January 2026 but failed to adhere to standard exit protocols. Apple claims Liu did not respond to efforts to have him sign a confidentiality reminder, schedule an exit interview, or confirm the return of his company-issued devices. The lawsuit further asserts that Liu neglected to return a work laptop and subsequently accessed a former colleague’s computer to retrieve data.

Regarding Tang Tan, Apple alleges that he utilized confidential company information during his recruitment efforts. Tan reportedly instructed potential hires to bring Apple components with them during interviews. The complaint also suggests that Tan and OpenAI coached current Apple employees on strategies for leaving the company. Before departing his role, Tan allegedly informed OpenAI about crucial meetings with Apple suppliers and emailed himself relevant details concerning those partnerships.

Impact on Partnership and Future Plans

In response to the allegations, OpenAI spokesperson Drew Pusateri issued a statement emphasizing the company’s commitment to integrity. “We have no interest in other companies’ trade secrets,” Pusateri stated. “We remain focused on building innovative technology that empowers people everywhere.”

Apple has expressed its own dedication to protecting its intellectual property. “At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously,” the company said in a separate statement. Apple noted that it reached out to OpenAI during the early stages of its investigation but received no reply.

This lawsuit marks a significant strain on the relationship between the two tech titans. In 2024, they announced a partnership to integrate ChatGPT into Apple’s ecosystem. However, reports from Bloomberg in May indicated that OpenAI was contemplating legal action against Apple, potentially citing insufficient integration and promotion of its products across Apple devices. OpenAI has been aggressively expanding its hardware division by hiring top engineering talent, with a CNN analysis of LinkedIn profiles revealing at least ten recent hires from Apple.