Apple accuses OpenAI of stealing AI hardware trade secrets through former employees.
Lawsuit seeks a jury trial, product redesign, and destruction of confidential materials.
OpenAI denies the allegations as the AI hardware rivalry intensifies.
Apple has sued OpenAI, accusing the artificial intelligence company of orchestrating a campaign to obtain trade secrets related to its upcoming hardware products, escalating tensions between the two companies that have worked together on artificial intelligence features, according to a Bloomberg report.
The lawsuit, filed in the US District Court for the Northern District of California, alleges that OpenAI encouraged current and former Apple employees to share confidential information, engineering drawings, components and other proprietary materials to accelerate development of its own AI devices.
Apple named OpenAI's chief hardware officer, Tang Tan, as a defendant in the case. Tan previously served as Apple's vice president of product design, overseeing development of the iPhone, Apple Watch, AirPods and other hardware products before leaving the company.
1 June 2026
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"At every level, from members of its technical staff to its chief hardware officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information," Apple alleged in the lawsuit, according to Bloomberg.
The iPhone maker is seeking a jury trial and has asked the court to order OpenAI to stop using any allegedly misappropriated information, destroy proprietary materials and redesign upcoming hardware products so they do not incorporate Apple's technology.
OpenAI denied the allegations, the Bloomberg report added.
"We have no interest in other companies' trade secrets," an OpenAI spokesperson said in a statement, adding that the company remained focused on "building innovative technology that empowers people everywhere".
The legal dispute marks a sharp deterioration in relations between the companies, which have collaborated in recent years to integrate ChatGPT into Apple's software ecosystem. OpenAI's technology powers several Apple Intelligence features, including ChatGPT integration within Siri and other AI-powered tools on Apple devices.
According to the lawsuit, more than 400 former Apple employees have joined OpenAI. Apple alleged that departing employees were coached on how to avoid immediate removal from the company's systems, enabling continued access to confidential information during their notice periods.
The complaint also names former Apple hardware engineer Chang Liu, who joined OpenAI in January. Apple alleged that Liu downloaded dozens of confidential files containing information on unreleased products, technical specifications, engineering presentations and proprietary project data before leaving the company.
Apple further alleged that Tang Tan encouraged prospective recruits to disclose information about unreleased Apple products during job interviews.
The lawsuit comes as major technology companies race to develop a new generation of AI-focused hardware, including smart glasses, wearable devices and other products that could eventually reduce reliance on smartphones.
Tan left Apple in 2024 to co-found AI hardware startup io Products alongside former Apple design chief Jony Ive and veteran designer Evans Hankey. OpenAI acquired the startup last year for $6.5 billion. Neither Ive nor Hankey has been named in the lawsuit.
Apple said it had attempted to resolve the dispute privately by asking OpenAI to stop the alleged practices and eliminate any proprietary materials but received no response, prompting the legal action, Bloomberg reported.
