Apple Sues OpenAI Over Trade Secret Theft in AI Hardware Push

Apple has filed a lawsuit against OpenAI in federal court in California, accusing Sam Altman's company of systematically stealing trade secrets tied to unreleased products. According to Apple, the scheme was institutional in nature rather than the actions of individual employees.

What Apple Alleges

According to the complaint, Tang Tan, who spent 24 years at Apple and helped design the iPhone and Apple Watch, used confidential Apple project code names while recruiting for OpenAI. He allegedly asked job candidates to bring physical Apple hardware components to interviews, including CAD files, prototypes, batteries, motherboards and enclosures, for "show and tell" sessions.

Apple also claims Tan advised departing employees on how to bypass the company's internal security procedures, and questioned candidates about details of unannounced products. The second defendant, Chang Liu, allegedly failed to return his company laptop after leaving Apple and used it to download confidential technical documentation, including information about unreleased technologies and features.

Substantial evidence has recently emerged that individuals employed by OpenAI unlawfully took Apple's trade secret and confidential information regarding our unreleased technologies, processes and products - Apple, from the lawsuit

The Hardware at Stake

The case carries added weight amid reports that OpenAI is working on its own hardware device meant to compete with the iPhone. In April 2026, industry analyst Ming-Chi Kuo suggested it could be a smartphone built around AI agents rather than traditional apps. Those plans rest on OpenAI's acquisition of io, the startup founded by legendary Apple designer Jony Ive, which OpenAI completed in May 2025 for $6.5 billion.

Ive is named in the lawsuit as part of the case's background, but Apple is not bringing direct claims against him. It is the former io team, bolstered by the recruitment of Apple veterans, that is said to be responsible for developing OpenAI's future hardware.

What Apple Is Seeking

In the lawsuit, Apple is seeking an injunction barring OpenAI from using or disclosing the trade secrets it obtained, the return of all confidential materials, and the preservation of evidence for further proceedings. The company has not yet specified the amount of damages it will seek as the case proceeds.

OpenAI has not yet publicly responded to the allegations. The case could take months to resolve, and its outcome would carry not just reputational but practical stakes if the court were to impose a temporary injunction on further work on the disputed parts of the project.

Tech Giants Clash Over AI Hardware

The dispute is the latest episode in growing tension between Apple and OpenAI, which are simultaneously partners (through the ChatGPT integration with Siri) and increasingly sharp rivals in the device market. For Apple, the stakes are protecting the iPhone's position as the central device in its ecosystem; for OpenAI, the ability to enter the hardware market without unfair-competition accusations dogging the project from the start.

For Polish tech companies and investors, the case is a signal of how much legal risk now comes with recruiting specialists from direct competitors for AI-related hardware projects, especially when confidential product data and engineering documentation are involved.

Sources: TechCrunch (techcrunch.com), CNBC (cnbc.com), Fox Business (foxbusiness.com)