Apple filed a civil lawsuit on Friday against OpenAI and two former employees, accusing the artificial intelligence company of orchestrating a systematic theft of trade secrets to accelerate its own consumer hardware ambitions. The complaint, lodged in the US District Court for the Northern District of California, names OpenAI’s chief hardware officer Tang Tan and engineer Chang Liu as defendants, alongside the OpenAI Foundation, its commercial entity, and hardware subsidiary io Products. According to the filing, the alleged misconduct includes instructing Apple staff to bring physical components to job interviews for “show and tell” sessions, probing candidates with confidential project code names, and advising departing employees on how to evade Apple’s security exit procedures.

Apple’s legal submission asserts that the campaign was “coordinated at an institutional level” and that the evidence uncovered so far represents “the tip of the iceberg.” The Cupertino-based company claims that Liu, after leaving Apple, accessed its internal network without authorisation and downloaded dozens of confidential files, while Tan is alleged to have emailed himself sensitive supplier information before his departure. The suit further states that OpenAI recruiters encouraged candidates to study proprietary Apple documents and prepare detailed technical presentations on their work. Apple says it raised its concerns with OpenAI in February but received no response, prompting the legal action.

Viewed from Silicon Valley, the lawsuit marks a sharp deterioration in a relationship that saw the two firms partner in 2024 to integrate ChatGPT into Apple’s ecosystem. Analysts note that tensions had been building for months, with Bloomberg reporting in May that OpenAI was itself considering legal action against Apple for allegedly failing to adequately promote the ChatGPT integration. The dispute now threatens to complicate OpenAI’s preparations for a highly anticipated initial public offering, as the company seeks to expand beyond software into physical devices designed by former Apple design chief Jony Ive’s studio, which OpenAI acquired last year.

OpenAI, headquartered in San Francisco, has not responded to requests for comment. The lawsuit seeks damages and an injunction barring OpenAI from using any misappropriated information, as well as a redesign of upcoming products. Apple said in a statement that it will “always defend our teams’ hard work and innovations.” The case, which also highlights the intensifying competition for AI engineering talent—over 400 former Apple employees now work at OpenAI—is in its preliminary stages, with no trial date yet scheduled.