Apple has filed a lawsuit against OpenAI, accusing the company of trade secret theft and breach of contract. The complaint, submitted on Friday in the U.S. District Court for the Northern District of California, alleges that OpenAI’s senior leadership, including Chief Hardware Officer Tang Tan, orchestrated a pattern of misconduct. According to Apple, Tan—who previously spent 24 years at the company, most recently as VP of product design for the iPhone and Apple Watch—used confidential Apple project code names during OpenAI’s recruiting efforts. He is also accused of asking job candidates to bring Apple hardware components to interviews, coaching departing employees on how to bypass security protocols, and requesting details about unannounced products.

The lawsuit emerges amid rumors that OpenAI is developing its first hardware product, potentially a smartphone that relies on AI agents rather than apps, as suggested by analyst Ming-Chi Kuo in April. If true, this could pose a significant threat to Apple’s core hardware business. The filing also references OpenAI’s acquisition of Jony Ive’s device startup, io, in a $6.5 billion deal last year to support its hardware ambitions, though Ive himself was not named in the complaint.

Beyond Tan, the lawsuit cites Chang Liu, a former senior systems electrical engineer at Apple who joined OpenAI in 2026. Apple alleges that Liu failed to return a company-issued laptop and used it to download confidential documents, including information about unannounced technologies, technical specifications, engineering presentations, and proprietary project data. Liu is also accused of sharing this information with other Apple employees applying for jobs at OpenAI, advising at least one on what to study before their interview.

Apple claims it sent a letter to OpenAI in February raising concerns but received no response. The company argues that these actions are part of a broader strategy to extract its confidential information, such as asking employees to bring designs and prototypes to interviews and answer questions about component and vendor selection. The filing further alleges that OpenAI and its partners have used Apple’s confidential information in developing their own hardware, citing a proprietary metal finishing technique that OpenAI used after allegedly misleading a partner into believing it had Apple’s permission.

In court, Apple seeks to bar OpenAI from using or disclosing its trade secrets, require the return of confidential materials, and preserve evidence. “This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership,” the filing states. “As a natural result, OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”

Apple also released a prepared statement: “At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products. We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so.”

OpenAI has been asked for comment. This story is developing and will be updated.