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Apple has filed a lawsuit against OpenAI, claiming the ChatGPT maker used its confidential information to speed up its AI hardware development. The lawsuit marks a major shift in the relationship between the two companies that recently worked together on artificial intelligence features. As competition in AI grows, the legal battle could have a lasting impact on the technology industry.
The case was filed in the US District Court for the Northern District of California. Apple claims OpenAI and two former employees used confidential company information without permission. According to the complaint, the information included product designs, manufacturing methods, supplier details, and internal business plans related to future hardware projects.
Apple named former Vice President of Product Design Tang Tan and former Senior System Electrical Engineer Chang Liu as defendants. The company also owns OpenAI entities and io Products, the hardware startup that OpenAI acquired. Apple says the alleged actions helped OpenAI move faster in building new hardware products without spending the same time on research and development.
The complaint claims Liu kept an Apple-issued laptop after leaving the company. Apple also says he later accessed Apple's internal network through a security issue and downloaded confidential hardware files. Apple further alleges Tan sent supplier information and internal reports to himself before leaving the company. The lawsuit also claims he encouraged job candidates to bring Apple components to interviews at OpenAI.
Apple believes these actions formed part of a larger effort to collect confidential business information. The company also claims some OpenAI employees contacted Apple's suppliers for private production details. In one example, Apple says a supplier shared a secret metal finishing process after believing OpenAI had permission to use it.
OpenAI has denied the allegations. The company said it has no interest in using another company's trade secrets and plans to defend itself in court. At this stage, the court has not ruled on the case, and the claims remain allegations.
Apple and OpenAI previously worked together when Apple added ChatGPT to iPhones, iPads, and Macs in 2024 through Apple Intelligence. Since then, both companies have expanded their own AI strategies, increasing competition in the fast-growing AI market.
The lawsuit could shape how technology companies protect confidential information while hiring experienced employees. A court decision may also clarify the legal limits between professional experience and company trade secrets as AI competition becomes stronger.
Apple also said more than 400 former employees now work at OpenAI. The company accepted that employee movement is common across the technology industry. However, Apple argues confidential company information should never move with employees changing jobs.
The lawsuit also comes as OpenAI increases its focus on consumer hardware. The company bought io Products, the startup founded by former Apple designer Jony Ive, to expand beyond software. Reports suggest OpenAI wants to create a new AI device that offers a different way to interact with artificial intelligence.
Industry experts believe the legal dispute could affect OpenAI's hardware plans and influence future hiring practices across the technology sector. Apple says the lawsuit aims to protect its intellectual property while the AI race continues to grow.
Also Read: OpenAI Expands ChatGPT Agent Features for Smarter Productivity in 2026
