Apple sues OpenAI over alleged theft of hardware trade secrets

Close up of Apple and OpenAI logos displayed on digital screens side by side

Quick Read

  • Apple filed a lawsuit against OpenAI and former employees, alleging the theft of proprietary hardware secrets.
  • The complaint highlights a 'pattern of theft' involving unreleased designs and manufacturing techniques to aid OpenAI’s hardware ambitions.
  • The legal action follows the collapse of a partnership and OpenAI's acquisition of Jony Ive's startup, io Products.

CUPERTINO (Azat TV) – Apple has initiated formal legal action against OpenAI in the U.S. District Court for the Northern District of California, alleging a coordinated and institutional effort to misappropriate confidential hardware trade secrets. The lawsuit marks a dramatic collapse in the relationship between the two tech giants, who just two years ago entered a high-profile partnership to integrate ChatGPT into Apple’s ecosystem.

Apple alleges systematic trade secret theft by former employees

The complaint details what Apple describes as a “pattern of theft” involving proprietary engineering processes, manufacturing techniques, and unreleased hardware specifications. According to CNBC, the suit names OpenAI, hardware startup io Products—which OpenAI acquired in 2025—and two former Apple employees: former Vice President of Product Design Tang Tan and former senior systems engineer Chang Liu.

Apple claims that Tan, now serving as OpenAI’s chief hardware officer, encouraged candidates interviewing for positions at OpenAI to bring sensitive Apple materials to interviews. The filing alleges that Tan requested “actual parts” and used internal Apple project codenames to extract information. Furthermore, Apple asserts that Chang Liu continued to access secure systems after his departure, allegedly using an Apple-issued device to download confidential files, including manufacturing documentation and technical specifications.

The shift from partnership to hardware rivalry

The legal confrontation follows OpenAI’s pivot toward consumer hardware, a move that placed it in direct competition with the iPhone maker. After acquiring Jony Ive’s startup, io Products, for $6.4 billion last year, OpenAI began developing a secret AI-powered device. As reported by Reuters, this expansion has strained ties between the companies, with Apple notably shifting its upcoming Siri assistant updates to utilize Google’s Gemini models instead of OpenAI’s technology.

Apple’s legal team argues that OpenAI’s nascent hardware division is built upon an illegal foundation. The complaint specifically highlights instances where OpenAI allegedly induced third-party manufacturing partners to perform proprietary metal finishing techniques invented by Apple, while misleading those partners into believing they had received the necessary authorization.

OpenAI’s response and the broader tech landscape

OpenAI has denied the allegations, stating that the company has no interest in misappropriating trade secrets and remains focused on building innovative technology. This legal challenge arrives at a precarious time for the AI firm, which is currently preparing for a highly anticipated IPO. While OpenAI recently successfully defended itself in a separate trial involving Elon Musk, the accusations from Apple suggest a more complex regulatory and legal environment for the company as it attempts to transition from software to physical hardware.

The severity of Apple’s allegations suggests that this is not merely a dispute over individual employee conduct, but a strategic challenge to OpenAI’s entry into the hardware market, effectively forcing the AI lab to defend the legitimacy of its intellectual property pipeline before it can scale its consumer device ambitions.

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Creator:Azat TV Editorial

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