Apple has sued OpenAI. According to the company, OpenAI systematically collected confidential information about upcoming Apple products and used it to build its own hardware. The iPhone maker is targeting two former employees and io Products, a company OpenAI acquired last year, in the lawsuit. Yet just two years ago, the two companies joined forces and the ChatGPT chatbot was integrated directly into iPhones. Now the partners have become rivals, and the dispute has ended up in court.
Apple alleges in the lawsuit that the theft took place throughout OpenAI’s entire organization. “At every level, from members of the technical team to the head of hardware and in coordination with business partners, OpenAI stole Apple’s trade secrets and confidential information,” the lawsuit states. The iPhone maker is asking the court to prohibit OpenAI from using or disclosing its secrets, compel the company to return all confidential materials, and preserve evidence.
According to Apple, the information included product designs, manufacturing processes, and supply chain strategies. The company adds that this is only the tip of the iceberg. It has no visibility into OpenAI’s internal operations and assumes it has uncovered only a portion of what was happening there.
Two former employees
The lawsuit names two key individuals. The first is Tang Tan, OpenAI’s current head of hardware. He spent twenty-four years at Apple and rose to become vice president of iPhone and Apple Watch design. He left the company in February 2024 to embark on a new project with Apple’s former chief designer, Jony Ive.
Apple accuses him of misusing confidential project code names when recruiting new employees and extracting further sensitive information from candidates. He allegedly urged candidates who were still working at Apple to bring “actual components” from Apple to interviews for so-called “show-and-tell” sessions, where he and his team mined them for additional secrets. These included batteries, logic boards, and System-in-Package modules from products that had not yet been unveiled. One candidate was reportedly so taken aback by the practice that they remarked how surprised they were that people brought unreleased hardware to job interviews.
Apple also claims that Tan compiled and distributed among new hires an internal document titled “Need to Know,” which described Apple’s security procedures for departing employees. Incoming employees were allegedly meant to use it to learn how to bypass checks and take data before submitting their resignations to Apple.
The second person named is Chang Liu, who worked at Apple for eight years as an advanced systems electrical engineer. He joined OpenAI in January 2026 and, according to the lawsuit, took more than just his experience with him.
Liu allegedly failed to return his work MacBook and, after leaving, discovered an authentication flaw that allowed him to continue accessing Apple’s corporate file servers. Instead of reporting it, he joked about it. “LOL, I found out I can access [network storage], so funny,” he wrote to former colleague Alyssa Peng, who remained at Apple, according to the lawsuit. She allegedly replied, “I’m ready,” and helped him obtain additional information through her own computer, Fortune reported.
According to Apple, Liu used this loophole to download dozens of confidential files. They included technical specifications, engineering presentations, manufacturing details, and testing procedures for unreleased products. The lawsuit says the collection of technical materials totaled more than a thousand pages. Apple also claims that Liu advised another employee on how to copy files without attracting the security team’s attention.
From partners to rivals
As recently as 2024, Sam Altman stood onstage at Apple’s headquarters as the two companies celebrated their alliance. ChatGPT was integrated directly into the iPhone operating system, and users could access its answers through Siri as well. Since then, however, the relationship has cooled considerably.
The turning point came last year, when OpenAI announced its entry into device manufacturing and acquired the startup io Products, co-founded by Jony Ive, for approximately $6.5 billion. Ive now leads device development at OpenAI. Tensions grew on both sides. OpenAI was unhappy with how Apple presented ChatGPT in its products, and reports emerged in May that it was considering legal action over an alleged breach of contract. Meanwhile, Apple announced in June that the redesigned Siri, due to arrive this fall, will run on Google’s Gemini models rather than OpenAI technology.
Notably, one person is absent from the lawsuit. Jony Ive is not among the defendants, even though he co-founded io Products and now leads OpenAI’s hardware efforts. The lawsuit targets OpenAI, io Products, and the pair Tan and Liu.
OpenAI denies everything
The company plans to unveil its first devices this year while also moving toward an anticipated stock market debut. Apple is seeking a preliminary injunction ordering the defendants to stop using its technologies, preserve evidence, and return all trade secrets. If the court grants the request, it could slow the launch of OpenAI’s hardware division.
OpenAI denies the allegations. “We have no interest in other companies’ trade secrets. We are focused on building innovative technologies that empower people around the world,” spokesperson Drew Pusateri said.
The dispute between the two companies shows how fierce the competition for talented employees and technology has become at a time when the shape of the next generation of devices is being determined. According to Apple, more than 400 of its former employees now work at OpenAI. Recruiting employees from competitors is itself legal in California because state law does not enforce non-compete clauses. Protecting trade secrets therefore remains one of the few tools Apple has left to counter the departure of its own employees.
