Apple has filed a lawsuit in California accusing OpenAI and former executive Tang Tan of stealing confidential design files and supplier data. The legal action alleges that OpenAI’s new hardware division relies on misappropriated secrets to build its upcoming AI devices. OpenAI has denied the claims, stating it has no interest in using another company’s intellectual property.
Apple Inc. has launched a legal battle against OpenAI, alleging that the artificial intelligence company built its hardware division using stolen trade secrets. The lawsuit, filed in the Northern District of California, marks a significant escalation in the competition between the two tech giants. Apple claims that former employees, including veteran product design leader Tang Tan and engineer Chang Liu, misappropriated sensitive technical files, design plans, and supplier information before joining OpenAI.
The Core Allegations
According to Apple’s filing, the company initiated an internal investigation in February 2026 after noticing potential leaks. Apple alleges that the defendants took proprietary data that is essential to its product development process. The company has also named io Products, a hardware startup acquired by OpenAI, as a co-defendant. Apple’s filing describes OpenAI’s hardware ambitions as being built on an illegal foundation, claiming that the alleged theft provides an unfair advantage in the development of AI-integrated consumer devices.
Leadership and Competitive Stakes
Tang Tan, who spent over two decades at Apple, was a high-level executive responsible for the product design of flagship devices like the iPhone and AirPods. His departure to OpenAI followed a trend of talent migration between major technology firms. Apple notes that OpenAI has reportedly hired over 400 former Apple employees, raising concerns about the potential transfer of internal knowledge. This legal action highlights the intense rivalry in the AI hardware sector, where companies are rushing to integrate advanced artificial intelligence directly into wearable and handheld devices.
Response and Legal Path Forward
OpenAI has formally denied the allegations, stating that its hardware developments are the result of original, innovative research. The company asserted that it has no interest in utilizing trade secrets from other firms. As the case proceeds, Apple is seeking a jury trial and a court-ordered injunction to prevent the destruction of evidence. The company is also demanding the return of all allegedly stolen files and is seeking compensation through royalties.
For investors, this litigation introduces a layer of uncertainty regarding the timeline and viability of OpenAI’s hardware roadmap. The key monitorable will be the court’s rulings on evidence handling and whether the injunction impacts OpenAI’s ability to proceed with its product launches. Investors may also look for further management commentary from both companies as the legal process moves toward the discovery phase.