Apple on Friday filed a lawsuit in a federal court in San Jose, California, accusing OpenAI of orchestrating a systematic campaign to steal trade secrets and confidential information to accelerate its own consumer hardware ambitions. The 41-page complaint, which also names two former Apple employees now at OpenAI and the hardware subsidiary io Products, alleges that the artificial intelligence company engaged in a “coordinated pattern of misconduct” to extract proprietary knowledge about unreleased products, manufacturing processes, and supplier relationships. The legal action immediately complicates OpenAI’s preparations for a highly anticipated initial public offering, with the company valued at roughly $852 billion.

Apple’s complaint details specific allegations against Tang Yew Tan, a 24-year Apple veteran who now serves as OpenAI’s chief hardware officer, and Chang Liu, a former senior electrical engineer. Tan is accused of using confidential project code names during job interviews to probe candidates about unreleased Apple products and of instructing Apple employees to bring physical components, such as batteries and circuit boards, to interviews for “show and tell” sessions. Liu allegedly downloaded dozens of confidential hardware-related files after leaving Apple in January and exploited a network vulnerability to continue accessing internal systems. Apple claims that more than 400 former Apple staff now work at OpenAI, and that the company “actively coached” departing employees on how to avoid detection. OpenAI, through a spokesperson, stated it has “no interest in other companies’ trade secrets” and remains focused on building innovative technology.

The lawsuit marks a dramatic rupture in a relationship that began with a 2024 partnership to integrate ChatGPT into Apple’s operating systems. Viewed from Cupertino, the collaboration soured after OpenAI acquired io Products—co-founded by former Apple design chief Jony Ive—for $6.5 billion in 2025, signalling its intent to compete directly in consumer hardware. Bloomberg reported in May that OpenAI had itself considered legal action against Apple, alleging the iPhone maker failed to adequately promote the ChatGPT integration. Analysts in London note that the dispute reflects an intensifying war for AI talent and intellectual property across Silicon Valley, as companies race to develop next-generation devices that embed artificial intelligence at their core.

The case, filed in the Northern District of California, seeks unspecified monetary damages and an injunction barring OpenAI from using any Apple confidential information. Apple said it attempted to raise its concerns with OpenAI in February but received no response. The lawsuit’s outcome could set a precedent for how trade secret law applies to the movement of employees between tech giants in the AI era. With OpenAI’s IPO timeline now clouded, the company faces the prospect of redesigning upcoming hardware products to exclude any contested technology. A jury trial has been requested, though no date has been set.