Apple expands AI partnerships while legal dispute with OpenAI continues
Apple partners with both OpenAI and Google for AI services amid competitive tensions.
Event / Security
Apple filed a lawsuit against OpenAI in July 2025 alleging that two former Apple employees misappropriated confidential hardware design and manufacturing information. The dispute involves allegations of data theft, destruction of evidence, and follows OpenAI's acquisition of io Products and employment of approximately 400 former Apple staff.
2026-09-02 to 2026-11-07 · UTC publication dates
Coverage begins 2 Sept, 02:16 UTC
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According to court filings, roughly 400 former Apple employees have joined OpenAI's hardware efforts. OpenAI cited California law allowing workers to move freely between competing companies and argued that Apple cannot characterize ordinary employee departures as unlawful just because they join a rival.
According to Apple's filing, Chang Liu sent instructions to destroy evidence to another OpenAI employee after discovering that Apple was conducting an internal investigation of him. The OpenAI employee confirmed she would comply with the destruction instructions.
Apple filed a lawsuit in July against OpenAI, io Products, and two former Apple employees (Chang Liu and Tang Yew Tan) alleging they stole confidential information related to hardware design, manufacturing, and supply-chain operations. Chang Liu was a senior systems electrical engineer at Apple who joined OpenAI in January. Tang Yew Tan previously worked at Apple for 24 years as vice president of product design for iPhone and Apple Watch, and now serves as OpenAI's chief hardware officer.
OpenAI filed a response denying any wrongdoing and asked the court to deny Apple's request for a preliminary injunction. OpenAI argued that the dispute stems from Apple's own handling of departing employees, noting that Apple encourages employees to use personal iCloud accounts for work and immediately escorts some departing employees from offices, leaving little time to return devices or transfer files.
Apple filed a motion requesting expedited discovery in the lawsuit, including early document production and depositions of key OpenAI employees and executives. Apple also sought access to a Mac mini that synced with Liu's MacBook, believing it contains additional evidence of trade secret misuse.
In January 2025, Apple struck a multiyear deal to use Google's Gemini models as the foundation for future Apple Intelligence features, including its revamped Siri.
In June 2024, Apple and OpenAI announced a partnership that brought ChatGPT into Apple products, allowing Siri and other Apple Intelligence features to tap into OpenAI's chatbot for some requests.
Apple alleged that Chang Liu continued to access Apple company files after leaving the company by exploiting what it described as a rare, previously unknown authentication bug. OpenAI later claimed that any Apple files Liu accessed after leaving were retrieved at the request of former colleagues who contacted him for help locating documents or answering questions about his previous work.
OpenAI acquired io Products, a hardware startup founded by former Apple design chief Jony Ive, in a deal valued at $6.5 billion. The acquisition brought Ive and his team into a close partnership with OpenAI as the company sought to develop a new generation of AI-powered devices. Tang Yew Tan left Apple before joining io and later became OpenAI's chief hardware officer.
Apple's forensic analysis of Chang Liu's MacBook revealed that Liu downloaded a confidential Apple circuit schematic and used it in his work at OpenAI. In March 2025, Liu used the schematic in LTspice, an electrical engineering tool, to run simulations with an AI agent. Apple argues that when trade secrets are fed into an AI agent or model that learns from them, it creates irreversible and continually propagating uses of the trade secret.
Apple partners with both OpenAI and Google for AI services amid competitive tensions.
OpenAI's $6.5B io Products acquisition added 400 Apple engineers to its workforce.
Apple accuses OpenAI employee of stealing hardware trade secrets and destroying evidence.