Apple has filed a lawsuit against OpenAI and two former employees, alleging that confidential company information was improperly taken and used to support OpenAI’s growing ambitions in consumer hardware.
The complaint, submitted in the U.S. District Court for the Northern District of California, claims that the defendants were involved in a coordinated effort to obtain Apple’s trade secrets, including details about product development, manufacturing methods and supply chain operations.
The case names former Apple employees Chang Liu, a former senior system electrical engineer, and Tang Yew Tan, a former vice president responsible for product design involving the iPhone and Apple Watch. OpenAI Foundation, OpenAI Group PBC and io Products are also listed as defendants.
Apple Claims Former Employees Took Confidential Information
According to Apple’s lawsuit, Liu allegedly kept a company-issued laptop after leaving the company and later exploited a security vulnerability to access Apple’s internal systems. The company claims he downloaded numerous confidential hardware-related documents.
Apple also alleges that Tan collected sensitive company information before his departure, including supplier details and internal technology summaries that were sent to his personal accounts.
The lawsuit further claims that Tan sought information about unreleased Apple projects by communicating with former colleagues and requesting details about confidential developments.
Apple argues that the alleged actions benefited OpenAI as the artificial intelligence company expands beyond software into consumer hardware products.
Growing Competition Between Apple and OpenAI
The legal dispute highlights increasing competition in the technology industry as major companies race to develop artificial intelligence-powered devices and services.
Apple and OpenAI previously formed a partnership in 2024, allowing ChatGPT integration with Apple’s ecosystem. The agreement enabled users to access ChatGPT features through Siri and other Apple applications.
However, the relationship has become more complicated as OpenAI moves into hardware development following its acquisition of io Products, a startup focused on consumer devices.
The acquisition, valued at approximately $6.5 billion, involved former Apple design leaders, including Jony Ive, although Ive is not named in Apple’s lawsuit.
Apple Seeks Court Order Blocking Use of Information
Apple is requesting a preliminary injunction that would require the defendants to preserve evidence, stop using Apple-related technology and return any alleged trade secrets.
If granted, the order could affect OpenAI’s developing hardware initiatives by limiting access to information Apple claims was obtained improperly.
OpenAI did not immediately issue a public response to requests for comment regarding the lawsuit.
AI Industry Faces Rising Intellectual Property Battles
The lawsuit reflects broader concerns across the technology sector as companies compete for specialized talent and proprietary innovations in artificial intelligence.
As AI companies expand into areas such as personal devices, robotics and consumer electronics, disputes over intellectual property and employee movement between major firms are expected to become increasingly significant.
Apple’s legal action represents one of the latest clashes in the rapidly evolving competition between traditional technology companies and emerging AI-focused organizations.
