Apple Accuses OpenAI, Jony Ive Firm of Trade Secret Theft

Apple has accused OpenAI of stealing its trade secrets, filing a lawsuit that turns a once friendly software partnership into a bitter courtroom fight over hardware. The suit, filed Friday in the Northern District of California, names OpenAI, two former Apple employees, and io Products, the hardware startup once led by Apple's former design chief Jony Ive.

At a Glance

Apple filed a 41 page complaint accusing OpenAI of systematically stealing trade secrets tied to unreleased hardware
Two named defendants, Tang Tan and Chang Liu, are former Apple employees now working at OpenAI
io Products, the hardware firm OpenAI bought for 6.4 billion dollars in May 2025, is also named
OpenAI denies wrongdoing, saying it has no interest in other companies' trade secrets
The case lands as Apple prepares a leadership change and OpenAI eyes a possible IPO

Why Apple Accuses OpenAI of Stealing Its Secrets

According to the complaint, the alleged theft reached deep into Apple's organization. Apple says it stretched from members of OpenAI's technical staff up to its chief hardware officer, and that it involved coordination with outside business partners. The company argues that OpenAI's entire hardware push now depends on information it never should have had.

Tang Tan, who spent about 24 years at Apple and rose to vice president overseeing iPhone and Apple Watch design, left in 2024 to join io Products. Apple claims Tan used confidential Apple codenames while recruiting for OpenAI, pushed interviewers to reveal internal information, and told some candidates to bring actual Apple hardware components into interview sessions.

The second named individual, Chang Liu, worked on OpenAI's technical staff. Apple alleges Liu downloaded numerous confidential files covering hardware specifications, engineering slide decks, and data tied to products that have not launched. Apple also claims Liu coached an Apple employee on how to slip files past the company's internal security checks. Separately, Apple says OpenAI used insider knowledge of its supplier network and internal terminology to approach the same contractors and vendors Apple relies on.

How OpenAI Is Responding

OpenAI pushed back firmly. In a statement, the company said it has no interest in other companies' trade secrets and remains focused on building technology that helps people. Apple, for its part, said in a statement that protecting its intellectual property is something it takes very seriously, noting that its teams are constantly working on new technology for its products and services.

From Partners to Rivals

The timing stings because Apple and OpenAI were, until recently, allies. ChatGPT had been woven into Apple's software and into Siri. That arrangement cooled, and in January Apple said it would lean on Google instead for its Apple Intelligence work. The lawsuit effectively closes the door on any near term reconciliation.

OpenAI's hardware ambitions are not secret. CEO Sam Altman has talked openly about building a new category of AI devices meant to eventually replace smartphones as people's main gadget. Buying Ive's io Products for 6.4 billion dollars in May 2025 was a clear signal of that intent, and it raised eyebrows across the tech industry given Ive's history shaping Apple's most iconic products. Ive himself is not named as a defendant in the suit.

A employee badge and security reader near a glass office entrance at dusk.

What Apple Wants and What Comes Next

Apple is asking the court for injunctive relief, monetary damages, and declaratory judgments meant to halt any further use of the disputed information. The case adds to a run of legal battles swirling around OpenAI. In 2023, the New York Times sued OpenAI and Microsoft over the use of its articles to train AI models. In June, a California judge threw out a separate lawsuit from Elon Musk's xAI, which had accused OpenAI of poaching an engineer to extract details about its Grok chatbot.

What This Fight Signals for the AI Hardware Race

This lawsuit lands just as both companies are shifting gears. Apple CEO Tim Cook is set to hand leadership to John Ternus in September, and OpenAI is preparing for a possible IPO while fending off rivals like Anthropic and Google. Whether Apple's allegations hold up in court remains unresolved, but the filing alone signals how seriously Apple views OpenAI's hardware ambitions as a competitive threat, not just a legal nuisance.