Former Apple executives at the center
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 flagship devices. He later helped found 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 on OpenAI, though the lawsuit focuses on specific allegations involving Tan, Liu and other recruits.
Apple alleges that Tan used terminology and confidential product information during interviews to ask potential recruits about unreleased products. The complaint also alleges that candidates were encouraged to bring in Apple’s 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 The complaint alleges that the material included information about unpublished products, technical specifications, engineering presentations and proprietary project data.
Apple also alleges that Liu carried an Apple laptop, accessed company systems through a previously unknown authentication flaw, and directed a former colleague to avoid scrutiny while copying files. These remain Apple’s claims and have yet to be tested in front of a judge or jury.
The war is about future devices
Apple and OpenAI began as high-profile partners when ChatGPT was integrated into Apple Intelligence and Siri. Their interests began to approach direct competition as OpenAI began building its own hardware operation.
The case gives a clearer picture of how seriously Apple views this threat. OpenAI has brought together 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 suppliers.
Apple’s complaint says OpenAI’s hardware software worked with Foxconn, Luxshare and Goertek, companies with extensive experience supplying or assembling Apple products. It also says that OpenAI had completed the first prototypes of the device by the end of 2025.
The dispute centers on whether OpenAI can turn the experience of former Apple staff into new products without using information that legally belongs to their former employer.
Employees are generally free to apply skills and experience gained during their careers, but confidential files, unpublished designs and proprietary manufacturing processes remain the property of the employer. The line between personal expertise and protected information will be central to the case.
What Apple wants from OpenAI
Apple is seeking financial damages and a jury trial, but the most immediate claim concerns the OpenAI hardware program.
The company wants the court to stop OpenAI and other defendants from possessing, using or disclosing its confidential information. She has also sought the return of Apple property, restrictions on further access and an order preventing the destruction of evidence.
A court order covering these claims could force OpenAI to share disputed information from its hardware work while the litigation continues. Apple will still have to back up its claims with evidence, while OpenAI will have an opportunity to dispute the allegations and present its defense.
The discovery process will be important because it could give Apple access to internal communications, recruitment data and technical documents related to the development of OpenAI’s hardware. Apple said in its filing that litigation and discovery were required to expose the extent of the alleged conduct.
What it means for Apple and ChatGPT users
Current iPhone, iPad and Mac users can continue to use ChatGPT through supported Apple Intelligence features. Neither company has announced the removal or suspension of that integration, and Apple’s filing says the existing ChatGPT agreement is not part of the dispute.
The long-term impact is about the products that can be offered to consumers in the coming years. OpenAI has built devices that put artificial intelligence at the heart of the experience, while Apple is developing its own AI wearables and home products.
Delays or limitations affecting OpenAI’s program could reduce the speed with which those competing devices reach consumers. The case could also make both companies more cautious about expanding their partnership into additional Apple features as they battle to develop hardware.
OpenAI CEO Sam Altman has publicly downplayed the confrontation while acknowledging Apple’s power.
“I’m not afraid of Apple, but I have tremendous respect for them. Top notch company,” Altman wrote in X.
– With data from Bloomberg.
Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation and the big changes shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series. Her reporting has taken her from breaking news to feature-length shows and high-profile interviews. Nivetha has interviewed Prince Khaled bin Alwaleed Al Saud, Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu, the IMF’s Jihad Azour, and a long list of CEOs, regulators and founders who are reshaping the region’s economy. An Erasmus Mundus journalism alum, Nivetha has shared classrooms and newsrooms with journalists from more than 40 countries, which perhaps explains her weakness for data, context and a good follow-up question. When she’s away from her keyboard (AFK), you’ll most likely find her at the gym with an Eminem playlist, enjoying One Piece, or exploring games on her PS5.
