Apple has filed a major lawsuit against OpenAI and two former employees, accusing the ChatGPT maker of using confidential information to accelerate its move into consumer hardware and challenge Apple’s core device business.
Apple Accuses OpenAI of Building Hardware on Stolen Know-How
The lawsuit marks a sharp escalation between two companies that were once public AI partners.
Reuters reported that Apple’s complaint accuses OpenAI of orchestrating a broad effort to acquire and exploit Apple’s confidential information through former employees, recruiting practices and supplier relationships.
OpenAI rejected the idea that it wanted Apple’s confidential information.
The Guardian reported that OpenAI spokesperson Drew Pusateri said the company was reviewing the court filing and repeated that OpenAI had no interest in other companies’ trade secrets.
Two Former Apple Employees Named
The lawsuit names Chang Liu, a former senior system electrical engineer, and Tang Yew Tan, a former Apple vice president of product design for the iPhone and Apple Watch. Liu and Tan were the two former Apple employees named in the suit and that neither immediately responded to requests for comment.
Apple’s allegations against Liu are specific. Apple claimed Liu failed to return a company-issued work laptop and later used an authentication bug to access Apple’s internal network and download dozens of confidential hardware-related files.
Tan’s Role Raises Hardware Stakes
Tan’s role is particularly sensitive because he now leads OpenAI’s hardware work. Tang Yew Tan, OpenAI’s chief hardware officer and a former Apple vice president, allegedly took information about Apple suppliers and encouraged interviewees at OpenAI to disclose confidential company information.
Apple also alleged unusual recruitment conduct. Apple’s complaint alleged Tan directed job candidates still working for Apple to bring “actual parts” to interviews so OpenAI could elicit more confidential information.
OpenAI’s Hardware Ambitions Strain Apple Partnership
The case lands as OpenAI moves deeper into consumer devices. OpenAI bought io Products, founded by former Apple designer Jony Ive, in a $6.5 billion deal last year as part of its push beyond software into consumer hardware.
That marks a reversal from the companies’ earlier cooperation. The Guardian reported that Apple and OpenAI announced a major partnership in 2024 that brought ChatGPT into Apple devices.
Lawsuit Could Shape the AI Device Race
Apple is seeking damages and a court order blocking OpenAI from using its alleged trade secrets. Apple is seeking damages and an order that would prevent OpenAI from possessing or using its trade secrets.
The case now turns on whether Apple can prove that OpenAI benefited from protected information, not merely from hiring former Apple employees. If the allegations hold, the lawsuit could slow OpenAI’s hardware ambitions. If OpenAI defeats the claims, the case may still show how fiercely Apple intends to defend its device expertise as AI companies move from chatbots into physical products.
