Apple filed a federal lawsuit against OpenAI on Friday in the Northern District of California, alleging systematic trade secret theft. The complaint claims OpenAI’s hardware division stole Apple intellectual property to develop its own consumer devices, with the scheme reaching “at every level” of the AI company’s hardware organization.
The Allegations
The lawsuit centers on Tang Tan, OpenAI’s Chief Hardware Officer and a former Apple vice president who spent years leading development of the iPhone, iPod, and Apple Watch before joining OpenAI. According to Apple’s complaint, Tan directed Apple employees interviewing at OpenAI to bring “actual parts” from Apple to their interviews for “show and tell” sessions designed to extract confidential information.
“This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information,” Apple stated in the filing.
Apple also alleges that OpenAI coached departing Apple employees on how to evade security processes when leaving the company. Chang Liu, a former Apple employee who joined OpenAI, is accused of stealing an Apple laptop and is named as a defendant alongside Tan. IO Products, the startup founded by former Apple designer Jony Ive that OpenAI acquired for $6.4 billion in 2025, is also named in the suit.
Partnership to Litigation
The lawsuit represents a sharp reversal. In 2024, OpenAI CEO Sam Altman visited Apple’s headquarters to announce the integration of ChatGPT into the iPhone operating system. That partnership began deteriorating after OpenAI acquired IO Products and signaled its entry into consumer hardware, directly competing with Apple.
Apple has since moved on: its updated Siri assistant, launching this fall, is built on Google’s Gemini AI models rather than OpenAI’s technology, according to CNBC.
One specific allegation involves manufacturing processes. Apple claims OpenAI is asking hardware partners to carry out a metal finishing technique that Apple invented, while “misleading the partner to believe they had Apple’s permission to do so.”
Timing and Stakes
Apple is seeking damages, injunctions, and a court order to force OpenAI to stop using its trade secrets. OpenAI has not announced specific hardware products, but Altman confirmed in November 2025 that the company had finished its first prototypes.
“We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere,” an OpenAI spokesperson told CNBC.
The suit adds to OpenAI’s mounting legal exposure as the company prepares for what is expected to be a historic IPO. It comes two months after OpenAI won a trial against Elon Musk, who alleged that Altman and co-founder Greg Brockman reneged on agreements to run the company as a nonprofit. Musk has said he will appeal.
The Agent Ecosystem Risk
For companies building on OpenAI’s APIs and agent infrastructure, the lawsuit introduces a new category of platform risk. If Apple prevails on injunctive relief, OpenAI’s hardware roadmap could be delayed or altered significantly. More immediately, Apple’s decision not to comment on whether the lawsuit affects the existing ChatGPT integration into Apple Intelligence creates uncertainty about the durability of one of the most important AI distribution channels in the consumer market.