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New Delhi: Apple has filed suit against OpenAI, accusing the AI ​​company of building its secretive hardware business on the back of stolen Apple trade secrets. The case, filed in federal court in Northern California, marks a striking turn for two companies that were partners just two years ago.

A Partnership Gone Sour

Back in 2024, Apple and OpenAI seemed to be on the same side ChatGPT got baked directly into iPhones as part of Apple Intelligence, with Sam Altman even making the trip to Cupertino for the announcement. That goodwill has clearly evaporated. Apple’s new Siri, rolling out later this year, runs on Google’s Gemini instead of OpenAI’s tech, and now the two companies are facing off in court.

Two Former Apple Insiders At The Center Of It

The lawsuit zeroes in on two people who used to work at Apple and now don’t: Tang Tan, who spent 24 years at Apple and led design on the iPhone and Apple Watch before becoming OpenAI’s chief hardware officer, and Chang Liu, a senior electrical engineer who left Apple for OpenAI earlier this year. Apple claims Liu held onto a company laptop after he left and used it to pull down technical files running into the thousands of pages — details on unreleased products, engineering specs, the kind of material Apple guards closely. According to the filing, Liu even joked about finding a security loophole that let him keep accessing Apple’s internal storage after he’d already gone.

Tan, meanwhile, is accused of something more calculated. Apple says he used the company’s own internal project codenames while interviewing OpenAI candidates who were still on Apple’s payroll, at times asking them to bring actual Apple hardware components into interviews for “show and tell.” The complaint also alleges he circulated an internal Apple document explaining how to get past the company’s exit-security checks — effectively coaching departing staff on how to leave without getting caught.

Apple Says This Wasn’t A Few Rogue Employees

What Apple is describing isn’t a couple of isolated incidents — it’s painting the picture of something baked into how OpenAI operates. The filing goes as far as to say the misconduct runs “at every level,” from ordinary technical staff up to leadership, and claims OpenAI also leaned on Apple’s suppliers to extract manufacturing details under false pretenses. Apple’s language in the complaint is blunt, calling OpenAI’s hardware business “rotten to its core” as a result.

OpenAI Isn’t Backing Down

OpenAI has flatly denied the allegations. In a statement, a company spokesperson said OpenAI has “no interest in other companies’ trade secrets” and remains focused on building its own technology the right way. The company hasn’t gone point by point through Apple’s specific claims yet, but it’s clear this fight isn’t going to be resolved quietly.

Why This Matters Beyond The Courtroom

This isn’t just a spat between two companies — it lands right as OpenAI is pushing toward a long-rumored hardware launch and gearing up for what’s expected to be a massive IPO. Apple, for its part, isn’t just asking for damages; it wants a court order stopping OpenAI from using whatever trade secrets it allegedly took, and it wants everything returned. However this plays out, it&8217;s likely to shape how seriously Silicon Valley treats the revolving door between rival AI companies going forward.