Apple Unleashes Lawsuit Against OpenAI, Alleges Widespread Trade Secret Theft for Rival Hardware

In a stunning reversal of their recent collaboration, Apple has filed an explosive lawsuit against artificial intelligence powerhouse OpenAI in a federal court in Northern California. The iPhone maker alleges a widespread scheme of trade secret theft, claiming OpenAI systematically stole Apple’s intellectual property to fuel its ambitions in consumer hardware development.

"This much is clear, however: 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 stated in its legal filing, underscoring the gravity of its accusations.

The lawsuit comes less than a year after Apple and OpenAI announced a high-profile partnership in 2024, which saw ChatGPT integrated into the iPhone's operating system. OpenAI CEO Sam Altman even visited Apple’s headquarters for the announcement, signaling a promising alliance. However, relations reportedly cooled significantly after OpenAI revealed its plans to enter the hardware market last year, notably acquiring former Apple design guru Jony Ive's startup, IO Products, for an astounding $6.4 billion.

VIDEO: Apple says OpenAI stole its secrets to build rival hardware (3:04)

Further evidence of the strained relationship surfaced when Apple announced that its updated Siri assistant, due this fall, would be powered by Google's Gemini AI models, bypassing OpenAI’s technology entirely.

Central to Apple's allegations are claims involving former employees who either interviewed with or joined OpenAI. The lawsuit specifically names OpenAI's hardware chief, Tang Tan, a former Apple vice president, as a defendant. Apple accuses Tan of directing job candidates still employed by Apple to bring "actual parts" from the tech giant to their interviews for "show and tell" sessions, purportedly to extract Apple’s confidential information.

The complaint also alleges that OpenAI actively coached departing Apple employees on how to circumvent security protocols upon their exit. One former employee, Chang Liu, who later joined OpenAI, is accused in the suit of stealing an Apple laptop.

Sam Altman, OpenAI CEO, and Tim Cook, Apple CEO, pictured at a White House dinner in September 2025. Will Oliver | Bloomberg | Getty Images

In addition to individual actions, Apple asserts that OpenAI approached hardware firms, requesting them to utilize a metal finishing technique invented by Apple, while allegedly misleading these partners into believing they had Apple's authorization to do so. A representative for Apple reiterated, "Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes, and products."

OpenAI, along with its acquired startup IO Products (also named in the lawsuit), has denied the accusations. "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere," an OpenAI representative stated. Despite these legal challenges, OpenAI CEO Sam Altman confirmed in November that the company had already completed its first hardware prototypes, though specific product details remain under wraps.

VIDEO: Apple suing OpenAI over alleged trade secret theft (5:30)

Apple has not commented on how this lawsuit might impact its ongoing partnership with OpenAI, especially concerning the integration of ChatGPT into its "Apple Intelligence" suite. These mounting legal issues add another layer of risk for OpenAI as it prepares for an anticipated historic IPO.

The lawsuit follows OpenAI's recent victory in a high-profile trial against Tesla and SpaceX CEO Elon Musk, who had claimed the AI lab reneged on agreements to operate as a nonprofit. While a federal jury sided with OpenAI, Musk has announced his intention to appeal. Apple is seeking damages, injunctions, and a court order to prevent OpenAI from further utilizing its alleged trade secrets.

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