Apple has filed a federal lawsuit against OpenAI, accusing the artificial intelligence company of systematically acquiring the tech giant's confidential information by recruiting former Apple employees and exploiting their access to proprietary product development data.

The lawsuit, filed on Friday, names OpenAI, its design subsidiary io Products, and two former Apple employees as defendants, alleging what Apple described as "a pattern of theft" involving confidential product designs, manufacturing processes, and unreleased technologies.

According to the complaint, at least two long-time Apple employees who later joined OpenAI allegedly emailed themselves sensitive internal documents before leaving the company. Apple claims the information included details related to unreleased products, trusted supplier relationships, engineering techniques, and strategic development plans.

The lawsuit names Chang Liu, a former senior electrical engineer who spent eight years at Apple, and Tang Yew Tan, who worked at the company for 24 years and served as vice president of design for the iPhone and Apple Watch before becoming OpenAI's Chief Hardware Officer.

Apple alleges that OpenAI has pursued "a strategy to extract Apple's confidential information" to accelerate its entry into the consumer hardware market.

The complaint further claims that OpenAI recruiters encouraged current Apple employees interviewing for positions to bring "actual parts" from Apple products as "props" for "show and tell," an allegation the company says demonstrates a broader effort to obtain proprietary information through recruitment.

Apple also accuses io Products, the hardware startup founded by legendary former Apple designer Jony Ive, of participating in the alleged scheme. OpenAI acquired the company last year as part of its expanding ambitions in AI-powered consumer hardware.

In response to the lawsuit, OpenAI denied any interest in acquiring competitors' trade secrets.

"We have no interest in other companies' trade secrets," OpenAI spokesperson Drew Pusateri said in a statement, adding that the company is reviewing Apple's complaint and remains "focused on building innovative technology that empowers people everywhere."

Apple, meanwhile, said the legal action is supported by "significant evidence" and claimed it had attempted to raise its concerns with OpenAI privately in February before deciding to pursue litigation after those efforts allegedly went unanswered.

The lawsuit marks a dramatic deterioration in relations between the two technology companies, which had previously maintained a cooperative relationship in the artificial intelligence sector.

Under former Apple CEO Tim Cook, Apple integrated OpenAI's ChatGPT into several of its products as part of its push to expand AI capabilities. However, earlier this year the company shifted more of its artificial intelligence features toward Google's Gemini models and services.

Despite their previous collaboration, Apple now contends that OpenAI's emerging hardware business has been built on improperly obtained proprietary information.

The company argues in its filing that OpenAI's alleged conduct has become institutionalized, stating that its "nascent hardware business now rests on the shakiest of foundations," claiming it relies on misappropriated trade secrets.

OpenAI is expected to unveil its first consumer hardware product—reportedly an AI-focused keyboard—later this month as it continues expanding beyond software into physical devices. The company is also preparing for a future public stock market listing.

Apple is asking the court to issue an injunction preventing OpenAI from acquiring or using any confidential Apple information and is seeking unspecified monetary damages for the alleged misuse of its trade secrets.

The case is expected to become one of the most closely watched legal disputes in the rapidly evolving artificial intelligence industry, highlighting growing tensions over talent recruitment, intellectual property, and competition in the race to develop next-generation AI technologies. (ILKHA)