Apple is suing OpenAI for allegedly pilfering hardware designs, claiming that employees brought prototypes to

      Apple has filed a lawsuit against OpenAI in a federal court in California, accusing the company of stealing trade secrets related to hardware designs as OpenAI prepares to launch consumer devices. The lawsuit, submitted on Friday, names OpenAI’s chief hardware officer Tang Tan and former Apple engineer Chang Liu, alleging that a pattern of misconduct has been “normalised and exemplified by leadership,” as reported by the Financial Times.

      According to Apple, Tang Tan, who worked at Apple for 24 years, including as VP of product design for both the iPhone and Apple Watch, allegedly shared confidential supplier information with OpenAI prior to his departure. The lawsuit claims that Tan directed Apple employees 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.

      In the case of Chang Liu, a former electrical engineer who contributed to Apple’s “most sensitive product development programs,” it is alleged that he did not return a work device, accessed trade secrets using another employee’s computer, advised that employee on copying files while evading security measures, and exploited a vulnerability in Apple’s network storage after leaving the company. Apple states that Liu messaged 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 asserted 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 prevent the destruction of evidence, the return of all trade secrets, and damages. The relationship between Apple and OpenAI has soured since OpenAI began preparing its own legal action concerning the failed ChatGPT-Siri partnership, with this lawsuit escalating the situation from a commercial dispute to criminal allegations.

      OpenAI responded by stating it has “no interest in other companies’ trade secrets” and is focused on developing innovative technology. The startup recently acquired Jony Ive’s io studio for $6.4 billion in May 2025, indicating plans to compete with the iPhone. Apple suggested that the alleged theft was partly due to OpenAI's pressure to quickly establish new revenue streams. OpenAI is currently under investigation by 42 state attorneys general and is facing scrutiny from investors regarding its $852 billion valuation, especially as it has been surpassed by Anthropic.