Apple accuses OpenAI of using stolen trade secrets to create its upcoming AI gadgets in new lawsuit

In a significant legal move, Apple has filed a lawsuit against OpenAI, claiming that the AI company has unlawfully utilized its trade secrets to develop new AI gadgets. The lawsuit was submitted to the District Court of Northern California, where Apple accuses OpenAI of misappropriating trade secrets and breaching contractual agreements. The conflict escalated after OpenAI revealed its collaboration with Jony Ive, Apple's former design chief, on a secretive project aimed at creating devices that will usher smartphone users into the AI era. An unveiling of this innovative device is anticipated later this year, but Apple's lawsuit could jeopardize those plans. This legal battle may also complicate OpenAI's forthcoming initial public offering (IPO), which is eagerly awaited in the tech world. The lawsuit names OpenAI, alongside Chang Liu, a former Apple engineer, and Tang Tan, OpenAI's hardware lead, who previously directed design for the iPhone and Apple Watch. While Jony Ive is not a defendant, Apple alleges that Liu and Tan played pivotal roles in the alleged misconduct. According to the lawsuit, Liu, who departed Apple in January 2026, neglected to respond to Apple's attempts to ensure he adhered to company confidentiality protocols upon his exit. Apple claims Liu failed to return a company-issued laptop and accessed a colleague's work computer after leaving, downloading numerous confidential files related to unreleased products. Furthermore, Apple contends that Tan misused proprietary information during the recruitment of candidates, including advising them to bring Apple components to interviews. The lawsuit also suggests that Tan and OpenAI provided guidance to former Apple employees on how to transition from the company. Apple has expressed its commitment to protecting its intellectual property and the innovations developed by its teams. In an official statement, the company emphasized the importance of safeguarding its technological advancements. Despite reaching out to OpenAI during the investigation, Apple claims it received no response. This lawsuit marks a deterioration of the previously collaborative relationship between Apple and OpenAI, which had announced a partnership in 2024 to integrate ChatGPT into Apple products. Additionally, reports have surfaced that OpenAI is contemplating legal action against Apple, alleging breaches of contract related to the integration and promotion of its products. The situation is fluid, with OpenAI actively recruiting from Apple's talent pool to bolster its hardware division. Recent LinkedIn analysis indicates that OpenAI has onboarded at least ten engineers directly from Apple, intensifying the competition between the two tech giants.