Apple has filed a lawsuit against OpenAI and two key members of OpenAI’s hardware organisation over alleged misuse of trade secrets. Apple described them as engaging in corporate espionage and demanded a jury trial. Apple claimed more than 400 of its former employees now work at OpenAI, adding it is not surprising that OpenAI employees know Apple’s confidential information.

On July 13, local time, multiple foreign media outlets including TechRadar reported that Apple claimed former Apple personnel used materials and technical information related to unreleased products for OpenAI’s hardware business.

The key figures in the lawsuit are OpenAI Chief Hardware Officer Tang Yew Tan (탕유 탄) and Chang Liu (창 리우), a former iPhone electrical engineer. Apple claimed the two left the company in the past two years, moved to OpenAI’s hardware organisation and then relied illegally on Apple’s internal confidential information and trade secrets. In its complaint, Apple said OpenAI’s early hardware business is "rotten from the ground up due to illegal reliance on misappropriated trade secrets."

Apple claimed Chang Liu did not return his work laptop when he resigned and later accessed Apple internal folders by exploiting a network vulnerability. He was reported to have left messages reading "LOL" and "so funny" while downloading unreleased product information, presentation materials, technical data and specifications. Apple also claimed Chang Liu told other Apple employees how to gather materials before leaving and advised them to send files to their personal email accounts.

Allegations involving Tang Yew Tan were also included. Apple claimed that after spending 25 years at Apple and moving to OpenAI, he is "systematically using Apple’s confidential information to benefit OpenAI." Apple also claimed Tang Yew Tan asked former Apple employees about next products using project code names used only inside Apple while staying in contact with them.

The complaint also included claims related to partner companies. Apple claimed OpenAI asked a partner to apply a specific metal finishing technique while describing it as if Apple had approved it. It also said OpenAI instructed applicants from Apple to bring everything from CAD files to actual prototypes or parts to interviews.

i am not afraid of apple, but i have tremendous respect for them. s-tier company.

OpenAI has been limiting its public response. Drew Pusateri (드루 푸사테리), head of strategic communications, wrote on X, formerly Twitter, "We have no interest in other companies’ trade secrets," adding, "We are focused on developing innovative technologies that empower people around the world." OpenAI Chief Executive Sam Altman said, when asked if he was afraid of Apple, "I am not afraid of Apple, but I have tremendous respect for them. S-tier company."

The lawsuit is expected to weigh on the companies’ existing partnership. Apple has enabled users, in the new Siri in the iOS 27 developer beta, to choose ChatGPT directly to handle requests, and it is also reflecting OpenAI functions in Image Playground and Visual Intelligence. If the legal dispute drags on, it has been raised that Apple could adjust the scope of such integration or put more weight on cooperation based on Google Gemini.

OpenAI could also take a hit. In the lawsuit, Apple pointed to OpenAI preparing an AI hardware business with Jony Ive (조니 아이브) that could lead to future wearable devices. Depending on the outcome, parts of OpenAI’s internal hardware development that touch Apple-related technology could face constraints.

The key question is whether the court battle will lead to an actual halt in cooperation. Apple claimed in its complaint that OpenAI has been stealing Apple’s trade secrets and confidential information across all levels of the organisation, from technical staff up to the chief hardware officer. It strongly criticised OpenAI, saying, "Such illegal conduct is normalised inside OpenAI, and management shows it." Apple has previously ended similar lawsuits with settlements, and settlement prospects are also being mentioned this time. But considering the strength of the language in the complaint, it does not appear easy for Apple and OpenAI’s cooperative relationship to return to its previous level.