Apple and OpenAI's AI partnership has given way to a courtroom battle.
Apple sued OpenAI and two former employees, accusing the ChatGPT maker of using confidential designs, supplier information, and manufacturing techniques to speed up its move into consumer devices. The case might have an impact on OpenAI’s hardware plans, weaken its partnership with Apple, and push technology companies to tighten controls around employee departures, recruiting, and intellectual property.
Apple details its allegations
Apple filed the lawsuit in the US District Court for the Northern District of California and named former employees Tang Yew Tan and Chang Liu as defendants.
Reuters reported that the company accused OpenAI of systematically obtaining confidential information by hiring Apple workers, questioning job candidates about unreleased projects, and contacting Apple suppliers.
Apple alleges Tan, OpenAI’s chief hardware officer, encouraged candidates to bring physical components from Apple to interviews for “show-and-tell” sessions. Tan spent 24 years at Apple and worked on product design for the iPhone and Apple Watch.
Liu allegedly kept an Apple laptop after leaving the company and exploited an authentication flaw to access Apple’s internal network. Apple said he downloaded dozens of confidential hardware files.
The lawsuit also accused OpenAI of approaching an Apple manufacturing partner to learn a proprietary metal-finishing technique while suggesting it had permission to use the process.
OpenAI rejected these claims.
“We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere,” an OpenAI spokesperson said, according to CNBC.
A partnership turns into a rivalry
The New York Times reported that Apple and OpenAI announced a major partnership in 2024 that brought ChatGPT into Siri and other parts of Apple’s operating systems.
Tensions grew as OpenAI moved beyond software and into hardware. The company acquired io Products, a hardware startup founded by former Apple design chief Jony Ive, for about $6.5 billion last year.
OpenAI has not revealed its first device, though CEO Sam Altman said the company had completed initial prototypes. The New York Times reported that OpenAI explored wearable or pocket-sized products built around voice, cameras, and AI services rather than traditional apps.
A successful OpenAI device could mean that a successful hardware launch could give OpenAI a direct relationship with consumers instead of relying on Apple, Google, or other platform owners to distribute ChatGPT.
Apple, meanwhile, faces the prospect of a new AI device competing for the time and attention now centered on the iPhone.
The lawsuit could slow OpenAI’s hardware push
Apple wants damages and a court order preventing OpenAI from possessing, using, or sharing its trade secrets. An injunction could disrupt OpenAI’s product development, supplier relationships, and hardware launch plans.
The case also exposes a growing compliance challenge across the technology industry. AI companies are hiring aggressively from competitors, making it harder to separate an employee’s general experience from protected documents, manufacturing methods, or unreleased product information.
Apple still must prove that OpenAI obtained and used legally protected trade secrets, since hiring hundreds of former Apple employees alone does not establish wrongdoing.
The legal fight could influence how technology companies recruit hardware talent, manage offboarding, and protect confidential information as competition over AI devices intensifies.
Read more: OpenAI is also facing a separate lawsuit from Florida over child safety concerns.