Apple has filed a lawsuit against OpenAI, accusing the AI company of orchestrating a coordinated effort to obtain confidential information about Apple's unreleased technologies, products and engineering processes through former employees. The case, filed in the U.S. District Court for the Northern District of California, marks a significant legal battle between two of the technology industry's biggest players as competition in AI-powered hardware intensifies.

Apple Alleges Systematic Misuse of Confidential Information

According to the lawsuit, Apple claims OpenAI's recruitment strategy encouraged former Apple employees to disclose proprietary information during the hiring process. The company alleges that OpenAI's Chief Hardware Officer, Tang Tan, who spent 24 years at Apple before joining OpenAI, instructed candidates to discuss confidential Apple projects, bring hardware components to interviews and share details about unreleased products.

Apple also alleges that departing employees were coached on how to avoid triggering the company's internal security measures while leaving with sensitive information.

Former Employees Named in the Lawsuit

The complaint specifically names Chang Liu, a former senior systems electrical engineer at Apple, accusing him of failing to return a company-issued laptop after joining OpenAI in 2026.

Apple claims Liu downloaded confidential technical documents before leaving, including engineering presentations, product specifications and information relating to unreleased technologies. The lawsuit further alleges that he shared confidential knowledge with other Apple employees seeking roles at OpenAI and advised candidates on what to study before their interviews.

Hardware Competition Moves to the Centre

The legal action comes as OpenAI continues to expand beyond software into consumer hardware. Industry reports have suggested the company is developing its first AI-powered device, which could compete directly with the iPhone by relying heavily on AI agents rather than traditional mobile applications.

OpenAI strengthened its hardware ambitions in 2025 through its acquisition of Jony Ive's startup, io, in a $6.5 billion deal. While io is referenced in the lawsuit, Apple has not named Ive personally in the complaint.

Apple Claims OpenAI Used Proprietary Manufacturing Techniques

Beyond employee conduct, Apple alleges that OpenAI and its partners incorporated confidential Apple technologies into their own hardware development. The lawsuit cites the alleged use of a proprietary metal finishing technique after OpenAI reportedly misrepresented that it had Apple's authorisation to use the process.

Apple argues that these actions demonstrate a broader pattern of trade secret misappropriation rather than isolated incidents.

What Apple Wants from the Court

Apple is asking the court to:

  • Prevent OpenAI from using or disclosing Apple's trade secrets.
  • Require the return of any confidential Apple materials.
  • Preserve all evidence related to the alleged misconduct.
  • Allow further legal discovery to determine the full extent of the alleged information sharing.

The company said it had previously raised concerns with OpenAI through a formal letter sent in February but received no response before filing the lawsuit.

OpenAI Rejects the Allegations

Responding after the lawsuit became public, OpenAI denied the accusations, stating that it has no interest in using competitors' confidential information.

In a public statement, the company said it remains focused on building innovative technology and does not rely on other organisations' trade secrets.

Why It Matters

The lawsuit highlights the increasingly fierce competition between major technology companies as artificial intelligence expands into consumer hardware. As firms race to develop the next generation of AI-powered devices, intellectual property and talent acquisition are becoming just as strategically important as the technology itself.

If Apple's allegations are proven, the case could influence how AI companies recruit talent from competitors and shape future legal standards around trade secrets in the rapidly evolving AI industry.