Apple has filed a lawsuit against OpenAI and two former Apple executives, accusing the ChatGPT maker of using confidential company information to speed up its expansion into consumer hardware. The legal action marks a sharp escalation in tensions between the longtime technology partners as competition in artificial intelligence intensifies.
Filed in the U.S. District Court for the Northern District of California, the complaint alleges that OpenAI systematically obtained Apple’s proprietary information through former employees, recruitment efforts, and supplier relationships to gain an advantage in developing AI-powered consumer devices.
OpenAI rejected the allegations.
“We have no interest in other companies’ trade secrets,” the company told in a statement. “We remain focused on building innovative technology that empowers people everywhere,” OpenAI further added.
The lawsuit comes as industry speculation grows that OpenAI is developing its own AI hardware, potentially including a smartphone or another consumer device. Such products could eventually compete with Apple’s ecosystem by offering AI-first experiences that rely less on traditional apps and operating systems.
According to Apple, the defendants include former senior system electrical engineer Chang Liu and former Apple vice president of product design Tang Yew Tan, who spent nearly 24 years working on products including the iPhone and Apple Watch before joining OpenAI.
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Apple alleges that Liu kept a company-issued laptop after leaving the company and later exploited an authentication flaw to access Apple’s internal network, downloading dozens of confidential files related to hardware development.
The company also claims Tan improperly retained sensitive information before departing Apple. According to the complaint, he emailed himself documents containing details about Apple’s suppliers and internal industry analyses.
Apple further alleges that Tan encouraged prospective OpenAI hires to bring Apple components to interviews for what it described as “show and tell” sessions. In one instance cited in the filing, a job candidate allegedly remarked, “I didn’t even know we could take those from the office.”
The lawsuit also names OpenAI Foundation, OpenAI Group PBC, the company’s commercial entity, and io Products, the AI hardware startup acquired by OpenAI.
Apple said it contacted OpenAI in February to raise concerns that its confidential information was being used by the company and requested discussions on the matter. According to the filing, OpenAI did not respond.
The iPhone maker noted that more than 400 former Apple employees now work at OpenAI but argued that hiring former employees does not give the company the right to use Apple’s proprietary information.
“That OpenAI now employs people who were once entrusted with Apple’s trade secrets does not entitle OpenAI to use that information to jumpstart its hardware efforts,” Apple stated in the complaint.
Apple also alleges that OpenAI employees sought confidential information through Apple suppliers. In one example included in the lawsuit, a supplier reportedly carried out a proprietary metal-finishing process after believing OpenAI had Apple’s authorization to use the technique.
The case opens a new legal front in the race to dominate AI-powered consumer devices, underscoring how the battle for talent, intellectual property, and next-generation hardware is reshaping relationships across the technology industry.