Apple Sues OpenAI over Alleged Trade Secret Misuse

Apple has filed a lawsuit against OpenAI, accusing the ChatGPT developer of obtaining confidential company information through former Apple employees it later hired, escalating tensions between the two companies despite their AI partnership.

The lawsuit, filed in a federal court in San Jose, California, alleges that OpenAI pursued a strategy to acquire Apple's trade secrets by recruiting key employees with access to sensitive internal information.

OpenAI denied the allegations, saying it has no interest in competitors' confidential information and is investigating the claims.

The lawsuit also names two former Apple executives: Tang Tan, co-founder of AI hardware start-up io Products, and Jony Ive, Apple's former chief design officer. OpenAI acquired io Products for $6.5 billion in May 2025 as part of its expansion into AI-powered consumer devices, which it plans to launch by 2027.

Apple alleges that Tang Tan took internal company documents when he left the company in 2024 and that he later sought additional confidential information from Apple employees applying for jobs at OpenAI.

Another former Apple employee, Zhang Liu, is accused of retaining Apple-owned devices after leaving the company in 2026 and continuing to access its internal network.

Apple said more than 400 former employees now work at OpenAI, arguing that the company had deliberately sought to benefit from their knowledge of confidential and proprietary information. The iPhone maker added that it has only limited visibility into OpenAI's internal activities but believes the alleged conduct is linked to the development of the company's new AI hardware business.

Apple is asking the court to block OpenAI from using confidential information obtained from its current or former employees and is seeking damages, although it has not specified an amount.

The lawsuit is expected to complicate OpenAI's preparations for a planned initial public offering. The company, valued at about $852 billion, considers expansion into consumer electronics a key driver of its future growth.