Anabelle Colaco
12 Jul 2026, 23:44 GMT+10
SAN FRANCISCO, California: Apple has sued OpenAI and two former employees, accusing them of misappropriating trade secrets to accelerate the ChatGPT maker's push into consumer hardware, escalating tensions between the two technology companies.
Filed in the U.S. District Court for the Northern District of California, the lawsuit alleges OpenAI orchestrated a broad effort to obtain Apple's confidential information through former employees, recruitment practices and supplier relationships.
"We have no interest in other companies' trade secrets," OpenAI said in a statement. "We remain focused on building innovative technology that empowers people everywhere."
The case comes as competition intensifies over AI-powered consumer devices that analysts believe could eventually challenge smartphones as the primary way people interact with artificial intelligence.
PP Foresight analyst Paolo Pescatore said the lawsuit reflects a changing relationship between the companies.
"Apple sees OpenAI moving from partner to potential rival, while OpenAI is trying to reduce its dependence on the iPhone and build a direct relationship with consumers," he said. "Even if the allegations are not proven, the lawsuit could delay OpenAI's hardware ambitions and further weaken what is already becoming an increasingly fragile partnership."
The two former Apple employees named in the lawsuit are Chang Liu, a former senior system electrical engineer, and Tang Yew Tan, Apple's former vice president of product design for the iPhone and Apple Watch. Neither immediately responded to requests for comment.
Apple alleged Liu failed to return a company-issued laptop and later exploited an authentication flaw to access Apple's internal network, downloading "dozens of Apple's confidential hardware-related files."
The company also alleged Tan emailed himself confidential supplier information and internal industry summaries before leaving Apple and encouraged employees interviewing at OpenAI to bring Apple parts for "show and tell" sessions.
Apple named OpenAI Foundation, OpenAI Group PBC and io Products, the hardware startup OpenAI acquired, as defendants.
According to the complaint, Apple contacted OpenAI in February to raise concerns that its confidential information was reaching the company but received no response.
Stanford Law School professor Mark Lemley said the lawsuit "has the potential to be a very big case."
"But if Apple's claims that the employees took confidential documents with them, and that OpenAI is using those documents, are true, that is a problem for OpenAI," he said.
Apple and OpenAI currently partner on Apple Intelligence, which integrates ChatGPT into Siri and other Apple services, even as OpenAI expands into consumer hardware through its acquisition of io Products, founded by former Apple designer Jony Ive.
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