Apple has taken OpenAI to federal court in San Jose, California, accusing the company of poaching employees and misusing confidential information tied to Apple’s hardware work. The dispute lands at a sensitive moment, as OpenAI pushes deeper into consumer hardware and faces fresh scrutiny over how it built that strategy.
The lawsuit adds immediate tension to a relationship that was once defined by cooperation. Apple says the case is not just about hiring practices, but about a broader pattern that it believes exposed trade secrets and internal know-how.
What Apple Is Alleging
In a 41-page complaint filed on Friday, July 10 local time, Apple says OpenAI coordinated with business partners to take trade secrets from multiple parts of the company. The accusations extend from technical staff to the Chief Hardware Officer.
Apple is asking the court for an injunction to stop OpenAI from using technology that it says was built on stolen trade secrets. The company is also seeking substantial monetary damages.
| Core Allegation | What Apple Says Happened | Apple’s Requested Action |
|---|---|---|
| Employee recruitment | OpenAI allegedly poached hundreds of Apple employees | Presented as part of an industrial espionage pattern |
| Trade secrets | Confidential and proprietary information allegedly taken | Apple wants the misuse blocked by injunction |
| AI hardware | The information was allegedly used for AI hardware development | Apple seeks major financial damages |
io Products Comes Into Focus
Apple singled out io Products, the hardware subsidiary tied to OpenAI and co-founded with Jony Ive, the former Apple design chief. The unit also involves two former Apple leaders, Tang Yew Tan and engineer Chang Liu.
Tang Yew Tan is a central figure in the complaint because he spent 24 years at Apple as Vice President of Product Design for the iPhone and Apple Watch. Apple says he used code names for secret projects while interviewing job candidates.
Internal documents cited in the lawsuit say at least 400 former Apple staff now work under the OpenAI umbrella. Apple views that large-scale movement as evidence of a wider effort rather than isolated hiring.
| Name or Entity | Role | Relevance to the Case |
|---|---|---|
| OpenAI | AI company | Main defendant in Apple’s lawsuit |
| io Products | OpenAI hardware subsidiary | Specifically highlighted in the complaint |
| Jony Ive | Former Apple design chief | Co-founded io Products |
| Tang Yew Tan | Chief Hardware Officer | Former Apple executive named in the filing |
| Chang Liu | Engineer | Listed among the io Products founders |
Prototype Parts and the Interview Allegations
Apple also claims Tang Yew Tan told candidates moving to the new venture to bring physical components from unreleased prototypes into interviews. The items allegedly included custom battery cells, circuit boards, and original parts.
According to Apple, those parts were used in secret show-and-tell sessions. The company says the finding is only the visible edge of a much broader security problem inside its hardware operations.
The case could also complicate OpenAI’s broader business plans, including a potential initial public offering. With a valuation of $852 billion, the company had already identified consumer hardware as a possible growth engine.
OpenAI had not issued a formal response at the time of reporting. Mediaindonesia.com said the dispute adds pressure to a rivalry between two companies that once moved in the same direction and are now facing each other in court.