Apple has filed a lawsuit against OpenAI, claiming that its employees took hardware designs and brought prototypes to the company.

      Apple has filed a lawsuit against OpenAI in a federal court in California, alleging the theft of trade secrets. The suit claims that OpenAI has engaged current and former employees to illegally obtain hardware designs in preparation for the launch of AI-based consumer devices. Filed on Friday, the legal action names OpenAI’s chief hardware officer Tang Tan and ex-Apple engineer Chang Liu, pointing to a culture of misconduct “normalised and exemplified by leadership,” as reported by the Financial Times.

      According to the lawsuit, Tang Tan, who worked at Apple for 24 years, including as the VP of product design for the iPhone and Apple Watch, allegedly shared sensitive supplier information with OpenAI prior to his departure. The suit claims he directed Apple staff to bring “digital designs and prototypes” to interviews at OpenAI for “show and tell sessions.” It is noted that over 400 former Apple employees are currently employed at OpenAI.

      Chang Liu, a former electrical engineer with experience in Apple’s “most sensitive product development programs,” is accused of not returning a work device, using another employee's computer to access trade secrets, coaching this employee on how to copy files while avoiding detection, and taking advantage of a vulnerability in Apple’s network storage after leaving. Apple alleges that Liu texted the employee: “LOL, I found out I can access the [network storage], so funny.”

      Apple described the evidence as “the tip of the iceberg” and claimed that OpenAI’s “nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.” The company is seeking an injunction to stop the destruction of evidence, the return of all trade secrets, and financial damages. The relationship between Apple and OpenAI has soured since OpenAI began exploring its own legal actions related to the failed ChatGPT-Siri partnership, escalating this issue from a commercial disagreement to a criminal accusation.

      In response, OpenAI stated that it has “no interest in other companies’ trade secrets” and is concentrating “on building innovative technology.” The startup also acquired Jony Ive’s io studio for $6.4 billion in May 2025, indicating its intention to compete with the iPhone. Apple claims that the alleged theft is partially due to OpenAI’s urgent need to quickly establish new revenue sources. OpenAI is currently under investigation by 42 state attorneys general and facing scrutiny from investors regarding its $852 billion valuation, particularly as it has been surpassed by Anthropic.