Apple sues OpenAI for allegedly running a "coordinated campaign" to steal trade secrets through poached employees

"At every level, from members of its technical staff to its chief hardware officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information," the complaint states. "As a natural result, OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."

OpenAI denied the allegations. A spokesperson said the company has no interest in others' trade secrets and is focused on building its own technology.

More than 400 ex-Apple employees now work at OpenAI

The lawsuit centers on Tang Tan, OpenAI's Chief Hardware Officer. Tan previously led iPhone, Apple Watch, and AirPods development as Apple's VP of Product Design. Apple claims he encouraged employees to share details about upcoming products during job interviews.

Former iPhone hardware engineer Chang Liu is also named. Liu joined OpenAI in January and allegedly downloaded dozens of confidential files over several weeks, covering unreleased products, technical specs, and proprietary project data. Last month, Paul Meade, who ran Apple's Smart Glasses and Vision Pro division, left for OpenAI too.

More than 400 former Apple employees now work at OpenAI, according to the complaint. Apple says OpenAI "counseled" departing staff, telling them not to reveal their new employer and to avoid quitting immediately so they could keep accessing confidential data during their two-week notice period.

Apple wants OpenAI to stop these practices, destroy all proprietary materials, and redesign products so they contain no Apple technology. The company is seeking a jury trial.

A partnership that ended up in court

The lawsuit grows out of OpenAI's push into hardware. Tan left Apple in 2024 to co-found AI device startup io Products with former Apple design chief Jony Ive and veteran Evans Hankey. OpenAI bought the startup last year for $6.5 billion. Neither Ive nor Hankey is named in the suit.

In June 2024, the two companies announced a close collaboration at WWDC. ChatGPT was integrated into Apple Intelligence. OpenAI had high hopes, but the partnership didn't move the needle. Apple has since shifted to working more closely with Google on Siri.

OpenAI's hardware won't ship until 2027 at the earliest

When OpenAI's hardware will launch and what it will look like remain open questions. The project reportedly faced major software, privacy, and infrastructure hurdles late last year. OpenAI scrapped the planned "io" brand and said its first device won't ship before late February 2027, later than originally announced.

Internally, the company is exploring several form factors: a pen-like device with a camera and microphone (codenamed "Gumdrop"), smart headsets, and a screenless speaker.

But the first mass-market product might just be a phone. Analyst Ming-Chi Kuo says OpenAI is working with MediaTek, Qualcomm, and Luxshare on a device that could hit mass production in the first half of 2027, controlled by an AI agent that users guide with voice commands. OpenAI likely built the technical foundation for this with its new ChatGPT Live mode.