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By Aurax Radio | July 11, 2026 | 2 min read
Apple has filed a federal lawsuit accusing OpenAI and two former Apple employees of misappropriating confidential information tied to the company's hardware development. The case marks a significant escalation in tensions between two companies that previously collaborated on artificial intelligence features while competing in the rapidly expanding AI market.
OpenAI is facing a federal lawsuit filed by Apple alleging the misuse of confidential hardware-related information.
Apple filed a lawsuit Friday in U.S. District Court for the Northern District of California accusing OpenAI and two former Apple employees of unlawfully obtaining and using confidential company information to accelerate OpenAI's hardware development efforts. The complaint alleges that former Apple executives Tang Yew Tan and Chang Liu improperly retained or accessed proprietary materials before and after leaving the company, including product designs, engineering data, manufacturing processes and supplier information. Apple also named OpenAI and its hardware subsidiary, io Products, as defendants, seeking monetary damages and court orders preventing any further use of the disputed information.
According to the complaint, Apple alleges the former employees downloaded or retained confidential files and shared internal knowledge that benefited OpenAI's effort to develop AI-powered consumer hardware. The lawsuit claims OpenAI recruited numerous Apple engineers as it expanded beyond software into hardware following its acquisition of io Products, the startup co-founded by former Apple design executive Jony Ive. OpenAI said it disputes the allegations, stating it has no interest in using competitors' trade secrets and intends to defend itself in court.
The lawsuit represents a sharp deterioration in the relationship between the two technology companies, which announced a partnership in 2024 that integrated ChatGPT into Apple's ecosystem through Siri and other services. It also underscores the increasingly intense competition among major technology companies to develop AI-powered devices and secure engineering talent as artificial intelligence expands beyond software into consumer hardware. The case is expected to proceed through the federal court system, where Apple will be required to prove its allegations and OpenAI will have an opportunity to contest the claims.
Sources: Information for this report was provided by Reuters, AP, The New York Times, The Washington Post, CNBC, The Guardian and Al Jazeera.