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The high-stakes battle to dominate the artificial intelligence era has officially moved into the courtroom. Apple filed an explosive lawsuit against OpenAI on Friday in the District Court of Northern California, accusing the AI powerhouse of trade secret misappropriation and breach of contract.
Apple alleges that OpenAI systematically poached its engineering talent to steal proprietary hardware secrets, weaponizing them to develop a secretive lineup of upcoming consumer AI gadgets.
The Secretive AI Hardware at the Center of the Storm
Last year, OpenAI confirmed it was partnering with Jony Ive—Apple’s legendary former design chief—on a highly confidential project to engineer hardware built specifically for the age of AI. The venture involved acquiring io Products, a company founded by Ive. While Ive himself is not named as a defendant or accused of wrongdoing, the lawsuit explicitly names OpenAI, its hardware chief Tang Tan, former Apple engineer Chang Liu, and io Products.
This unannounced AI device was widely expected to debut later this year. However, Apple's legal blitz threatens to completely disrupt those plans and could severely complicate OpenAI's path toward its highly anticipated initial public offering (IPO).
OpenAI has denied the allegations.
“We have no interest in other companies’ trade secrets,” said Drew Pusateri, an OpenAI spokesperson. “We remain focused on building innovative technology that empowers people everywhere.”
How the Stolen Technical Secrets Allegedly Left Apple
According to court filings, former Apple employees who transitioned into OpenAI's expanding hardware division played critical roles in orchestrating the data theft. The lawsuit centers heavily on the actions of two individuals:
Chang Liu (Former Apple Engineer)
Apple claims that when Liu left to join OpenAI in January 2026, he evaded all standard exit protocols. He reportedly ignored requests to schedule an exit interview, sign confidentiality reminders, or confirm the return of corporate hardware. Apple alleges he kept a work-issued laptop and even illegally accessed a former colleague's computer after leaving.
Through these methods, Liu allegedly downloaded "dozens of Apple’s confidential hardware-related files," including:
Voluminous, highly detailed data regarding unreleased products.
Proprietary engineering presentations and technical specifications.
Highly sensitive, internal project data.
Tang Tan (OpenAI Hardware Chief)
Tan previously led product design for the iPhone and Apple Watch before leaving Apple. The suit alleges Tan actively used confidential Apple information to poach talent, even instructing interview candidates to bring physical Apple parts with them to OpenAI interviews. Furthermore, Apple claims Tan and OpenAI systematically coached employees on how to covertly leave Apple, and that Tan emailed himself sensitive supplier meeting data before resigning.
The Collapse of a Tech Partnership
This lawsuit marks a definitive and bitter ending to the relationship between the two tech giants. In 2024, the companies grabbed headlines by announcing a high-profile partnership to integrate ChatGPT directly into Apple products.
Signs of structural cracks emerged earlier this year. In May, reports surfaced that OpenAI was considering its own legal action against Apple, claiming the iPhone maker breached contract terms by failing to sufficiently promote and integrate OpenAI’s products across its device ecosystem.
Ultimately, this legal war underscores a deeper strategic anxiety. Both companies are racing toward the next frontier of ambient computing. While Apple prepares to launch its heavily upgraded, deeply personalized version of Siri later this year, OpenAI is aggressively building standalone hardware. The tech industry widely believes that as autonomous AI agents mature, consumers will no longer rely heavily on traditional apps or screens—making the race to build the physical portal for these AI models the ultimate battleground.