Apple has filed a lawsuit against OpenAI, its commercial arm OpenAI Group PBC, and its hardware subsidiary io Products (IO), accusing the ChatGPT creator of orchestrating a systematic theft of confidential Apple information.
The suit, lodged in the U.S. District Court in California, names two former Apple employees, Chang Liu and Tang Yew Tan, and turns what had been an uneasy AI partnership into open legal warfare.
Liu, an 8-year Apple engineer who joined OpenAI in January 2026, allegedly kept his Apple work laptop, exploited an authentication bug to slip back into Apple’s internal network, and pulled dozens of confidential files covering unreleased products and technical specifications.
He is also accused of coaching a colleague he was recruiting on how to lift files without tripping Apple’s security systems.
Tan’s alleged conduct runs deeper given his seniority, having spent 24 years at Apple, rising to Vice President of Product Design for iPhone and Apple Watch, before becoming OpenAI’s Chief Hardware Officer.
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Apple claims he emailed himself supplier data and internal industry summaries before quitting, used an internal Apple codename to probe an unannounced product during interviews with Apple staff, and told job candidates still on Apple’s payroll to bring actual hardware parts to interviews for show-and-tell sessions.
The lawsuit comes at a time when the relationship between the two companies appears to be under strain. Apple and OpenAI partnered in 2024 to bring ChatGPT to Siri and Apple Intelligence.
However, reports in May 2026 suggested OpenAI was considering legal action over what it viewed as a disappointing Siri integration.
OpenAI’s $6.5 billion acquisition of Jony Ive’s IO in 2025 also raised the stakes. The deal signaled the company’s intention to build consumer hardware that would compete directly with the iPhone instead of simply providing software for Apple’s devices.
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Apple is pursuing trade secret misappropriation and breach of contract claims, arguing that Liu and Tan violated the Intellectual Property Agreements they signed as Apple employees.
The Cupertino-based company wants damages, a jury trial, and a court order barring OpenAI from touching the material it allegedly obtained.
In a statement responding to the suit, OpenAI has pushed back on the allegations, stating:
“We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
The denial sidesteps the specific claims against Liu and Tan and instead frames OpenAI’s broader mission, leaving the factual disputes over the laptop, the network access, and the codename inquiries to play out in court.
If Apple wins, the case sets a firm boundary around how aggressively AI companies can poach hardware talent from established manufacturers.
Courts could order OpenAI to purge Apple’s data from its systems, delay IO’s device roadmap, and force stricter vetting of hires who come from rivals. It would also hand Apple a strong deterrent against future defections, reinforcing the message that IP agreements have teeth.
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If OpenAI wins or the claims are limited, it would indicate that courts are becoming stricter about what counts as real trade secrets versus the general knowledge that engineers gain throughout their careers, which belongs to individuals rather than companies.
That outcome would embolden AI firms building hardware divisions to keep recruiting from Apple, Samsung, and other device makers without fear of sweeping litigation.
