Apple filed a lawsuit on Friday against OpenAI alleging trade secret theft and breach of contract, the iPhone maker said in a complaint filed in the U.S. District Court for the Northern District of California.

The Allegations

Apple alleges the misconduct — which it says reveals “a pattern of theft” by former Apple employees now at OpenAI — was directed by OpenAI’s senior leadership, including Chief Hardware Officer Tang Tan, who spent 24 years at Apple most recently as VP of product design for the iPhone and Apple Watch. The suit accuses Tan of using Apple’s confidential project code names during recruiting, asking candidates to bring Apple hardware components to interviews, and coaching departing employees on how to evade Apple’s security procedures.

Apple also names Chang Liu, a senior systems electrical engineer who spent eight years at Apple, alleging he failed to return an Apple-issued laptop after leaving for OpenAI and used it to download confidential technical documents. The company said it sent OpenAI a letter in February raising concerns and received no response.

The Stakes

The accusations land as OpenAI is rumored to be developing its first hardware product — potentially a smartphone built around AI agents rather than apps — which would compete directly with the iPhone. OpenAI acquired Jony Ive’s device startup io last year in a $6.5 billion deal to power those ambitions. OpenAI, asked for comment, said it “has no interest in other companies’ trade secrets” and remains “focused on building innovative technology.”

Sources