Apple Takes OpenAI to Court Over Alleged Trade Secret Theft Tied to Future AI Devices
Apple has reportedly escalated its growing rivalry with OpenAI by filing a civil lawsuit in the Northern District of California, accusing the ChatGPT maker of misusing confidential information connected to Apple’s unreleased consumer AI products.
The case marks a dramatic new chapter in the battle for artificial intelligence talent and next-generation hardware. Over the past year, OpenAI has aggressively recruited former Apple employees as it works on AI-powered devices designed to move beyond software and into everyday consumer electronics. Apple now claims that some of those departures involved more than ordinary job changes.
According to Apple’s lawsuit, “significant evidence” has surfaced suggesting that individuals employed by OpenAI wrongfully obtained secret and confidential information related to Apple’s unreleased technologies, internal processes, and future products.
The complaint names OpenAI, Jony Ive’s AI hardware startup io, and two former Apple employees: Tang Tan, previously a vice president of design at Apple, and Chang Liu, a former senior system electrical engineer. OpenAI acquired io last year in a deal valued at $6.5 billion, bringing Ive’s hardware design ambitions directly into OpenAI’s growing AI ecosystem.
Apple alleges that Tang Tan used his deep knowledge of Apple’s future AI product roadmap while interviewing potential hires from the company. The lawsuit claims Tan encouraged candidates to bring Apple hardware components and samples to “show and tell” sessions, raising concerns that confidential product details may have been shared during OpenAI’s recruitment process.
In one example cited by Apple, a job candidate allegedly began taking screenshots and downloading files related to a highly confidential Apple project just hours before an interview with Tan. Apple claims Tan then pushed the candidate to provide more information about the project.
The iPhone maker also says it uncovered a broader pattern among employees leaving for OpenAI, alleging that some took steps to bypass Apple’s internal security protections designed to safeguard confidential files and engineering data.
Chang Liu is accused of exploiting a security flaw to download sensitive engineering documents after leaving Apple. According to the lawsuit, the files totaled more than a thousand pages and included details related to device circuit boards and other proprietary hardware information.
Apple further alleges that OpenAI misled one of Apple’s trusted partners into demonstrating a proprietary metal-finishing technique, which Apple claims was part of its protected manufacturing knowledge.
To strengthen its case, Apple points to OpenAI’s large-scale hiring from within its ranks. The lawsuit states that OpenAI has brought on more than 400 former Apple employees, a number that underscores how intense the competition has become between the two companies.
Apple is seeking damages as well as injunctive relief, which could limit OpenAI’s use of any information the court finds was improperly obtained.
The legal fight arrives as OpenAI continues to pursue consumer AI hardware that could challenge Apple’s dominance in personal technology. The company has reportedly been developing multiple AI devices, including AI-powered earbuds internally known as “Sweetpea,” which may eventually launch under the “Dime” brand, and a pen-shaped AI device carrying the internal codename “Gumdrop.”
OpenAI’s hardware push has been closely watched because it brings together advanced generative AI, former Apple design talent, and the influence of Jony Ive, whose design work helped define the iPhone, iMac, iPad, and Apple Watch.
Apple, meanwhile, appears determined to defend both its talent pipeline and its confidential product development. The company has reportedly increased annual bonuses for key members of its design team, with select employees eligible for payouts ranging from $200,000 to $400,000 depending on Apple’s stock performance.
The lawsuit highlights a broader shift in the technology industry. Artificial intelligence is no longer just a software race. Companies are now competing to build the next generation of AI-first devices, and the battle for engineers, designers, manufacturing experts, and hardware secrets is becoming increasingly fierce.
For Apple, the stakes are especially high. The company is under pressure to prove that it can remain a leader in the AI era while protecting the product secrecy that has long been central to its brand. For OpenAI, the case could complicate its ambitions to create a breakthrough consumer AI device capable of changing how people interact with technology.
As the case moves forward, it could reveal more about Apple’s unreleased AI hardware plans, OpenAI’s device strategy, and the increasingly aggressive fight to define the future of personal computing.
