Apple has sued OpenAI for alleged trade secret theft, claiming the AI lab coached departing employees to bypass security and misappropriate confidential hardware data. While Apple alleges OpenAI ignored its concerns, emails indicate communication stalled after an Apple attorney accidentally misidentified two OpenAI employees, complicating the legal dispute.
The Legal Allegations and Trade Secret Claims
The conflict between two of the tech industry’s most prominent players erupted last Friday when Apple filed a 41-page complaint in the U.S. District Court for the Northern District of California. According to the filing, Apple alleges that “at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information.”
Central to the lawsuit is Tang Tan, OpenAI’s Chief Hardware Officer and a former Apple vice president. Apple contends that Tan, who spent 24 years at the iPhone maker and previously held top positions including vice president of product design for the iPhone and Apple Watch, directed candidates to bring “actual parts” from Apple to their interviews for “show and tell” sessions. Apple alleges these sessions were intended to elicit further confidential information. The lawsuit also claims that OpenAI coached departing Apple employees on how to evade security processes when leaving the iPhone maker. Additionally, the filing names Chang Liu as a defendant in the case.
The lawsuit marks a significant escalation in tensions following OpenAI’s acquisition of former Apple designer Jony Ive’s startup, IO Products, for $6.4 billion. Apple claims its internal investigation uncovered evidence that OpenAI and its partners used the company’s confidential information to develop a hardware product, with reports suggesting the company is working on a mobile, screen-free smart speaker that could directly compete with Apple’s business.
Communication Breakdown via Legal Misidentification
While Apple asserted in its legal filings that OpenAI “never responded” to its concerns this year regarding what Apple believed was trade secret theft, internal correspondence suggests a more disorganized reality. Emails reviewed by NBC News indicate that OpenAI did respond in February to Apple’s initial outreach. According to OpenAI, the communications became bogged down and abruptly stopped after an outside attorney representing Apple mixed up the names and email addresses of two OpenAI employees who had the last names Wang and Chang.
OpenAI’s Defense and the Hardware Pivot
OpenAI has publicly denied the claims. In an initial statement provided to TechCrunch hours after the lawsuit was filed, the company proclaimed a lack of interest in technology developed by other companies, stating, “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
On Tuesday, OpenAI further pushed back against the allegations in a statement first shared by Bloomberg reporter Ed Ludlow on X. “While we take these allegations seriously, we’re not aware of any evidence that this complaint has merit,” the company stated. “We believe in fair competition and allowing people the freedom to work wherever they choose, and we’re focused on building innovative technology that empowers people everywhere.”
The legal battle represents a shocking reversal for the two companies, which entered into a high-profile partnership in 2024 when ChatGPT was integrated into the iPhone’s operating system. At the time of that announcement, OpenAI CEO Sam Altman visited Apple’s headquarters. The relationship has since chilled, particularly as Apple prepares for the fall launch of an updated version of its Siri assistant, which is reportedly based on Google’s Gemini AI models rather than OpenAI’s technology. On September 4, 2025, Sam Altman and Apple CEO Tim Cook were photographed together during a dinner with tech leaders in the State Dining Room of the White House in Washington, DC.
The court must now weigh these allegations of security breach against OpenAI’s defense of open competition, with the future of the companies’ high-profile partnership remaining uncertain.
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