Apple Accuses OpenAI of Orchestrating Systematic Theft of Its Hardware Secrets

A Partnership Turns Into a Legal War

Apple has sued OpenAI in federal court in Northern California, alleging the AI company took Apple's intellectual property in order to develop its own consumer hardware. The lawsuit is a shocking reversal for the two companies, which entered into a high-profile partnership in 2024, when ChatGPT was integrated into the iPhone's operating system. Now, rather than collaborating, the two tech giants are headed for a courtroom showdown — one that could reshape the AI industry's future.

The lawsuit marks a dramatic escalation between two companies that were once working together to bring ChatGPT into Apple's software platforms and Apple's Siri digital assistant — a partnership that faded over time, with Apple eventually turning to Google for its Apple Intelligence efforts. In May, Bloomberg had reported that OpenAI was considering legal action against Apple, potentially alleging breach of contract over claims that Apple had not sufficiently integrated and promoted OpenAI's products across its devices. The tables have now turned — decisively.

What Apple Says Was Stolen and How

Apple alleges that the misconduct reveals a pattern of theft from OpenAI employees who previously worked at Apple, directed by OpenAI's senior leadership, including Chief Hardware Officer Tang Tan — who is accused of using Apple's confidential project code names during OpenAI's recruiting process, asking job candidates to bring in Apple hardware components to their interviews, coaching departing Apple employees on how to evade Apple's security procedures, and asking for details about unannounced products.

Before joining OpenAI, Tan had spent 24 years at Apple, most recently as VP of product design for the iPhone and Apple Watch. The lawsuit also alleges that Chang Liu, a former senior electrical engineer at Apple, kept a work-issued Apple laptop and discovered a bug that allowed him to access Apple's cloud file storage after leaving — and celebrated the exploit. While developing hardware for OpenAI, he accessed and downloaded dozens of confidential files from Apple's network, many labeled as confidential.

The filing also references a proprietary metal finishing technique that OpenAI allegedly used after misleading a partner into believing it had Apple's permission to do so. Apple says the stolen documents included information about unannounced technologies, features, and products, including technical specifications, engineering presentations, and proprietary project data.

OpenAI's Hardware Ambitions at the Center of It All

Apple's former lead designer Jony Ive's device startup io was acquired by OpenAI last year in a $6.5 billion deal to aid the AI company with its hardware ambitions. The suit does not name Ive as a defendant, nor does it accuse him of wrongdoing. The device OpenAI has been developing is expected to be unveiled later this year — but the lawsuit could throw a wrench into those plans.

Apple said in the lawsuit that it reached out to OpenAI in February to raise its concerns early in its investigation, but OpenAI did not respond. Apple is now asking the court to bar OpenAI from using or disclosing its trade secrets, require the company to return any confidential Apple materials, and preserve evidence related to the case. OpenAI, for its part, has pushed back firmly. "We have no interest in other companies' trade secrets," said OpenAI spokesperson Drew Pusateri, adding that the company remains "focused on building innovative technology that empowers people everywhere."

High Stakes Beyond the Courtroom

Mounting legal woes present another risk to OpenAI as it gears up for what's expected to be a historic IPO. OpenAI has aggressively poached top current and former Apple leadership and engineering talent, primarily to build a dedicated hardware division — with at least ten engineers having recently joined the AI company directly from Apple.

The case raises uncomfortable questions that extend far beyond these two companies. How do you protect decades of proprietary innovation when your most knowledgeable employees walk out the door to join a competitor? Like many tech companies, Apple typically investigates potential trade secret theft by analyzing communications on company-owned devices and reading through server logs — but by taking the case to court, Apple will have an opportunity to learn more about the extent of the alleged operation through the legal discovery process. That discovery process alone could prove explosive — and whatever emerges may well set new legal precedents for how Silicon Valley handles talent poaching in the AI era.