Apple is suing OpenAI in California federal court, alleging the AI company orchestrated a campaign to steal trade secrets for its hardware ambitions.
The lawsuit names OpenAI's Chief Hardware Officer Tang Tan, a former Apple employee, and claims the company encouraged recruited staff to share confidential product specs, manufacturing processes, and supplier relationships. Apple alleges OpenAI ran "show and tell" interviews where candidates brought physical components to demonstrate replicating Apple's proprietary metal-finishing techniques.
Specific tactics cited: Tang Tan allegedly kept his company laptop after leaving, exploited security bugs to access internal systems, and downloaded confidential files. Another former employee, Chang Liu, is also named.
Apple contacted OpenAI in February 2026 requesting they stop using information from former employees. OpenAI did not respond. The suit followed.
This ruptures the Apple-OpenAI partnership that integrated ChatGPT into Apple Intelligence. OpenAI's statement: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."
Why this matters for sales teams: OpenAI is expanding beyond software into hardware that directly competes with iPhone and Siri. If the allegations hold, it shows how aggressive talent acquisition strategies can cross legal lines. The case will likely drag through a multiyear jury trial. Apple is seeking an injunction to force OpenAI to redesign hardware without Apple's IP, which could delay device rollout and reshape OpenAI's go-to-market strategy.
Market context: Apple pulled $390B revenue in 2023, dominates consumer hardware. OpenAI, backed by $13B+ from Microsoft, leads AI software but is new to hardware manufacturing. Both have significant ANZ operations, with Apple employing thousands regionally and OpenAI expanding AI teams.
Apple attempted private resolution before filing. OpenAI's silence on that outreach is notable. Worth watching: how this impacts their existing partnership and whether other tech companies face similar allegations as AI firms push into hardware.