What was once one of the most talked-about partnerships in artificial intelligence has now turned into a major legal dispute. Apple has filed a lawsuit against OpenAI, accusing the AI company of misappropriating confidential information and trade secrets to accelerate the development of its own AI-powered hardware.
The case, filed in the US District Court for the Northern District of California, highlights growing tensions between two companies that only recently collaborated to bring ChatGPT-powered features to Apple’s ecosystem.
Beyond the courtroom, the dispute reflects the fierce competition surrounding AI talent, intellectual property, and next-generation AI devices.
Apple Accuses OpenAI of Misusing Confidential Information
According to Apple’s lawsuit, OpenAI and members of its hardware division allegedly coordinated efforts to obtain proprietary information related to Apple’s unreleased products.
The complaint names Tang Tan, OpenAI’s Chief Hardware Officer, and Chang Liu, a former Apple hardware engineer, among those accused of possessing or accessing confidential company information after leaving Apple.
Apple alleges that its trade secrets were used to support OpenAI’s growing hardware ambitions.
OpenAI has strongly denied the allegations, stating that it has no interest in acquiring competitors’ confidential information and remains focused on building its own technology.
Who Is Tang Tan?
Tang Tan spent years at Apple as Vice President of Product Design, overseeing the development of several flagship products, including:
- iPhone
- Apple Watch
- AirPods
- Other consumer hardware
In 2024, Tan left Apple to co-found io Products alongside former Apple design leaders Jony Ive and Evans Hankey.
OpenAI later acquired io Products in a deal reportedly valued at $6.5 billion, making Tang Tan the company’s Chief Hardware Officer.
Although Jony Ive and Evans Hankey are not named in the lawsuit, Apple argues that OpenAI’s hardware expansion relied on former Apple employees with access to sensitive product information.
Apple’s Key Allegations Against OpenAI
Attempting to Obtain Confidential Product Information
Apple claims OpenAI encouraged prospective employees to discuss confidential Apple projects during recruitment.
According to the lawsuit, candidates were allegedly asked to provide details about unreleased products and, in some cases, even bring prototype components to interviews.
Downloading Proprietary Company Files
The lawsuit also accuses former Apple engineer Chang Liu of downloading confidential hardware documents before leaving the company.
Apple alleges the files included:
- Engineering presentations
- Technical specifications
- Product development documents
- Information about unreleased hardware
The company claims these materials were accessed while Liu was preparing to join OpenAI.
Coaching Employees on Leaving Apple
Apple further alleges that OpenAI advised departing Apple employees on how to resign without attracting attention.
According to the complaint, the company encouraged employees to avoid disclosing their future employer, allowing them to retain access to Apple’s internal systems for longer periods before their departure.
Contacting Apple’s Manufacturing Partners
Another allegation states that OpenAI used confidential information obtained from former Apple employees to communicate with Apple’s manufacturing partners.
Apple claims at least one supplier was approached regarding production techniques used for Apple devices, including methods for finishing metal components.
Ignoring Apple’s Warning Letter
The lawsuit states that Apple formally contacted OpenAI in February 2026, warning that confidential information may have been improperly transferred.
According to Apple, OpenAI never responded to the letter.
What Apple Wants From the Court
Apple is seeking a jury trial and several legal remedies, including:
- An injunction preventing OpenAI from using Apple’s trade secrets
- The return of any confidential intellectual property
- Destruction of proprietary Apple materials
- A court order requiring OpenAI to redesign future hardware products if they rely on Apple’s technology
- A permanent halt to any practices involving alleged misuse of confidential information
From Strategic Partners to Legal Rivals
The lawsuit marks a dramatic reversal in the relationship between the two technology giants.
In 2024, Apple announced a partnership with OpenAI during its Worldwide Developers Conference (WWDC), integrating ChatGPT into Siri as part of the company’s broader Apple Intelligence initiative.
The collaboration enabled users to:
- Access ChatGPT directly through Siri
- Generate text using ChatGPT
- Analyse images with Visual Intelligence
- Create AI-generated images inside Image Playground
At the time, Apple publicly praised OpenAI as a leader in artificial intelligence, and OpenAI CEO Sam Altman attended the announcement.
Why the Relationship Began to Deteriorate
Industry reports suggest tensions emerged as both companies pursued increasingly ambitious AI strategies.
OpenAI reportedly became dissatisfied with how ChatGPT was integrated into Apple’s products, believing the partnership was not delivering the expected impact.
Meanwhile, Apple’s recruitment challenges intensified as hundreds of former Apple employees reportedly joined OpenAI, including engineers involved in future hardware projects.
The hiring of legendary Apple designer Jony Ive for OpenAI’s hardware ambitions further fuelled speculation that the companies were becoming direct competitors.
Competition Intensifies in the AI Device Race
The dispute also highlights Silicon Valley’s rapidly growing competition to build the next generation of AI-powered consumer devices.
Apple is reportedly developing several AI-focused products, including:
- Smart glasses
- AI-enabled wearables
- Camera-equipped AirPods
- Other intelligent personal devices
OpenAI, meanwhile, is believed to be developing an AI-first smartphone designed around autonomous AI agents rather than traditional app-based interfaces.
The company aims to rethink how users interact with technology in a future where artificial intelligence becomes the primary computing interface.
Apple Expands AI Partnerships
Adding another twist to the rivalry, Apple recently announced plans to integrate Google’s Gemini AI into Siri and other Apple Intelligence features.
Reports suggest OpenAI considered legal options after becoming dissatisfied with the evolving partnership, arguing that the collaboration had not delivered the expected commercial benefits.
Conclusion
The legal battle between Apple and OpenAI goes far beyond allegations of trade secret theft. It reflects the rapidly intensifying competition for AI talent, intellectual property, and leadership in the next era of consumer technology. As both companies race to build AI-powered devices that could redefine computing after the smartphone, the outcome of this lawsuit may have significant implications for the future of the global artificial intelligence industry.