Apple vs OpenAI: Inside the iPhone trade secrets lawsuit and what it means for ChatGPT on Apple devices

Former Apple executives at the centre

Tang Tan spent 24 years at Apple and was most recently vice-president of product design, where he worked on the iPhone, Apple Watch and other major devices. He later helped establish io Products before becoming OpenAI’s chief hardware officer.

OpenAI acquired io for about $6.5 billion in 2025 and combined the business with its hardware operation. Apple said more than 400 former employees of the iPhone maker are now working at OpenAI, although the lawsuit focuses on specific allegations involving Tan, Liu and other recruits.

Apple claims Tan used confidential product terminology and information during interviews to question prospective recruits about unreleased products. The complaint also alleges that candidates were encouraged to bring Apple work materials and discuss proprietary components and designs.

Liu, who joined OpenAI in January, is accused of accessing and downloading dozens of confidential hardware files after leaving Apple. The complaint claims the material included information about unreleased products, technical specifications, engineering presentations and proprietary project data.

Apple also alleges that Liu retained an Apple laptop, accessed company systems through a previously unknown authentication flaw and coached a former colleague on avoiding scrutiny while copying files. These remain Apple’s allegations and have yet to be tested before a judge or jury.

The fight is really about future devices

Apple and OpenAI began as high-profile partners when ChatGPT was integrated into Apple Intelligence and Siri. Their interests began moving closer to direct competition once OpenAI started building its own hardware operation.

The case gives a clearer view of how seriously Apple views that threat. OpenAI has assembled former Apple engineers and designers, including people who worked on some of the company’s most successful products, while also building relationships with established electronics manufacturers and…

Source