Apple sued OpenAI in federal court in Northern California on Friday, accusing the artificial-intelligence company, two of its employees and the design startup io Products of a coordinated "pattern of theft" that reached, in Apple's words, "at every level, from members of its Technical Staff to its Chief Hardware Officer."

The suit upends the relationship the two companies forged in 2024, when OpenAI's ChatGPT was folded into the iPhone's operating system, and lands weeks before OpenAI is expected to release its first consumer hardware product and pursue a planned initial public offering. Apple is asking the court to bar OpenAI from using the material at issue and to award unspecified damages.

What the filing alleges

Apple wrote in the complaint that OpenAI has been "stealing Apple's trade secrets and confidential information" and that the alleged conduct gave the startup access to "sensitive projects, trusted partner relationships, proprietary manufacturing techniques, and unreleased products."

Two former Apple employees are named as defendants alongside OpenAI and io Products. Tang Tan, now OpenAI's chief hardware officer, spent 24 years at Apple and served as a vice president of design for the iPhone and Apple Watch. Chang Liu, a senior electrical engineer, worked at Apple for eight years before joining OpenAI.

Apple alleged that Tan directed employees interviewing for OpenAI jobs to "bring 'actual parts' from Apple to their interviews for 'show and tell' sessions". Apple said those requests were part of a broader push by OpenAI to elicit unreleased product details from candidates still on Apple's payroll. The complaint also says OpenAI coached departing Apple staff on how to evade the company's security exit procedures, and that Liu took an Apple laptop when he left.

The filing further accuses OpenAI of asking hardware suppliers to apply a metal-finishing technique invented by Apple while "misleading the partner to believe they had Apple's permission to do so." Apple said it attempted to raise its concerns with OpenAI in February and was ignored.

Why the timing matters

The dispute has been building since OpenAI moved into hardware last year with its $6.4 billion purchase of io Products, the design house founded by former Apple design chief Jony Ive. OpenAI Chief Executive Sam Altman said in November that the venture had completed its first prototypes; the company is expected to introduce its first product, described in earlier reporting as a keyboard designed for use with OpenAI's AI tools, this month.

Apple has been unwinding its own OpenAI ties in parallel. The company's updated Siri assistant, due this fall, will run on Google's Gemini models rather than on ChatGPT. Chief Executive Tim Cook, who announced in April that he will step down later this year, personally championed the 2024 OpenAI integration. When Cook disclosed his departure, Altman called him "a legend" and said he was "very thankful for everything he has done." Four months later, Apple is asking a court to enjoin further use of Apple information by Altman's engineers.

OpenAI's response

OpenAI's public response so far has consisted of a single written statement. Drew Pusateri, a company spokesman, said OpenAI has "no interest in other companies' trade secrets" and is "focused on building innovative technology that empowers people everywhere." Pusateri said the company is reviewing the complaint. An Apple spokesman told the BBC the lawsuit is the product of "significant evidence."

Other side absent

Both wire accounts on which this article draws are center-lean and rely on Apple's version of the disputed conduct. OpenAI had not filed a response by press time, and neither Tan nor Liu has commented publicly on the claims. Ive and io Products, both named in the complaint, were not quoted in the underlying coverage. A federal jury ruled for OpenAI in May in a suit brought by Tesla and SpaceX Chief Executive Elon Musk over the company's shift away from its nonprofit origins; Musk said he would appeal. The May verdict indicates OpenAI has been willing to litigate rather than settle.

OpenAI is expected to unveil its first hardware product later this month and to advance its IPO plans. Friday's suit gives Apple a claim it can press before either milestone reaches the market.