Apple filed a lawsuit on Friday against OpenAI and named two former Apple employees, accusing the ChatGPT developer of orchestrating a campaign to obtain confidential information to accelerate its hardware developments. According to Reuters, Apple asserts that OpenAI used targeted recruiting, former employees and supplier contacts to gain access to sensitive material.
Allegations in the complaint
The complaint names two former Apple employees: Chuang Liu, a former systems electrical engineer, and Tang Jev Tan, a former vice president responsible for iPhone and Apple Watch product design. Apple alleges that Chuang Liu failed to return a company laptop and exploited an authentication error to access the company’s internal network, from which he downloaded dozens of confidential documents related to hardware development.
Apple further alleges that Tang Jev Tan — who now leads OpenAI’s hardware division — emailed supplier data and internal market analyses to his personal account before leaving Apple, and encouraged former colleagues to bring parts to interviews at OpenAI as demonstrations. The filing also claims OpenAI employees attempted to obtain trade secrets directly from Apple suppliers, for example seeking details of a confidential metalworking process.
According to Apple, more than 400 former Apple employees are currently employed by OpenAI.
Responses
OpenAI has denied the allegations, stating it does not need others’ trade secrets and will continue focusing on developing its own innovative technologies.
What is at stake
At issue is who will dominate the future market for consumer devices powered by artificial intelligence — devices that could operate without traditional operating systems and apps. Analysts quoted in the report say a successful OpenAI hardware product could pose serious competition to the iPhone, one of Apple’s primary revenue sources; the article notes that OpenAI may already be working on its own smartphone or other hardware.
Prior ties and acquisitions
Tensions between the companies escalated despite a 2024 partnership under which ChatGPT was integrated into Apple devices and Siri gained access to AI-generated responses. Last year, OpenAI acquired hardware maker io Products for $6.5 billion; io Products was founded by Jony Ive, Apple’s former renowned designer, although his name is not listed as a defendant in Apple’s filing.
Legal assessment
Legal experts say the case could carry significant consequences. Mark Lemley, a law professor at Stanford University, observed that if it is proven that new hires stole trade secrets and OpenAI used them in its developments, the startup could face serious legal liability. At the same time, experts note that some of Apple’s claims — such as mass recruitment of employees — may not be unlawful under California law.
Potential impact
The lawsuit could shape the legal and commercial boundaries of competition in AI-driven hardware. For now, both sides maintain opposing accounts; the resolution will depend on the evidence presented in the legal proceedings.
