Apple has filed a lawsuit against OpenAI, alleging that former employees who transitioned to the AI giant systematically stole proprietary hardware secrets "for the benefit of OpenAI."

The Allegations

In its complaint, Apple claims it uncovered "a pattern of theft of Apple's trade secrets by OpenAI employees who were formerly at Apple." The suit targets three key defendants:

  • IO Products — Jony Ive's hardware startup, acquired by OpenAI in 2025
  • Tang Tan — OpenAI's chief hardware officer and former Apple executive
  • Chang Liu — who joined OpenAI from Apple in January

What's at Stake

The lawsuit signals a sharp escalation in tensions between two companies that have had a complex relationship — Apple integrated OpenAI's ChatGPT into its Apple Intelligence platform just last year. Now, the two are facing off in court over some of Apple's most sensitive hardware R&D.

"At Apple, our teams are constantly developing breakthrough technologies to create the best…" — Apple spokesperson, via 9to5Mac

The inclusion of IO Products is particularly notable. OpenAI's acquisition of Jony Ive's venture was widely seen as a major bet on building a next-generation AI hardware device — making Apple's proprietary hardware knowledge an especially valuable target.

Broader Implications

This case puts a spotlight on the fierce talent wars reshaping the AI industry, where departing engineers often carry deep institutional knowledge. For OpenAI, the lawsuit could complicate its ambitious hardware roadmap at a critical moment in its push beyond software.