Apple and OpenAI have recently gone from partners to courtroom rivals after Apple filed a lawsuit accusing the ChatGPT-maker of stealing trade secrets to build its growing AI hardware business.
The lawsuit marks a dramatic turn in the relationship between the two companies, which only a year ago worked together to bring ChatGPT-5 to iOS 26 through Apple Intelligence.
Filed in the U.S. District Court for the Northern District of California, the 41-page complaint alleges that OpenAI and several former Apple employees engaged in a coordinated effort to obtain confidential information about Apple’s unreleased products, manufacturing processes and supply chain.
Apple says the information was used to strengthen OpenAI’s hardware ambitions. But OpenAI has denied the allegations, saying it has no interest in other companies’ trade secrets.
“We have no interest in other companies’ trade secrets,” Drew Pusateri, OpenAI’s Director of Strategic Communications said on X. “We remain focused on building innovative technology that empowers people everywhere.”
Apple Says Trade Secrets Were Taken to Benefit OpenAI
Apple’s lawsuit names OpenAI, io Products and two former Apple employees now working with OpenAI. These employees include Tang Yew Tan, who now serves as OpenAI’s Chief Hardware Officer, and Chang Liu, a former senior systems engineer at Apple. Apple alleges the pair improperly accessed and retained confidential company information before and after leaving the company.
According to the complaint, the iPhone-maker believes the alleged conduct went far beyond the actions of a few individuals, as it also claims OpenAI encouraged job candidates and former employees to share confidential information during interviews and throughout the hiring process.
Apple says this activity helped support OpenAI’s effort to develop consumer AI hardware that could eventually compete with products like its flagship iPhone.
More Than 400 Former Apple Employees Now Work at OpenAI
Another striking claim from the lawsuit is Apple’s statement that more than 400 former Apple employees are now working at OpenAI. Apple argues that the number itself is not evidence of wrongdoing, but says it has made protecting its intellectual property increasingly difficult as OpenAI expanded its hardware team with former Apple talent.
Apple also alleges that some interview discussions involved questions about its confidential projects and unreleased technologies. This includes messages and internal communications that the company says demonstrate unauthorized access to sensitive files after certain employees had already left the company.
However, these allegations remain unproven and will be tested in court.
A Sharp Change from Partnership to Legal Battle
The lawsuit represents a major breakdown in a relationship that once appeared mutually beneficial. In 2024, Apple announced a partnership that integrated ChatGPT into Apple Intelligence, giving iPhone, iPad and Mac users access to OpenAI’s technology. Since then, OpenAI has expanded into hardware through its acquisition of io, the startup co-founded by former Apple design chief Jony Ive.
Apple is now asking the court to stop OpenAI from using any alleged trade secrets, require the return of confidential materials and preserve evidence related to the case.
In unusually strong language, Apple argues that OpenAI’s hardware business is “rotten to its core” because it allegedly relies on misappropriated trade secrets. The iPhone-maker’s lawsuit further claims that the incidents described are only a small part of the broader picture and says the discovery process could reveal additional evidence if the case proceeds.
The case is likely to become one of the most closely watched legal battles in the AI industry, as the outcome could shape how companies recruit talent, protect intellectual property, and compete as AI increasingly expands into consumer hardware.
