OpenAI has been quietly building toward a smartphone launch that would rival the iPhone, but a newly filed lawsuit from Apple threatens to derail those ambitions before they take shape.
The legal complaint, submitted Friday in a California federal court, accuses OpenAI of systematically extracting confidential information from former Apple employees — including one who spent nearly a quarter-century at the company. Tang Tan, who now serves as OpenAI’s chief hardware officer after two decades designing Apple’s flagship products, is at the center of allegations that he coached departing staff on how to sidestep the company’s security protocols and encouraged job candidates to bring Apple hardware components to their interviews.
The timing of the suit is significant. OpenAI is widely believed to be developing its first hardware product — reported to be an AI-first smartphone that would replace traditional app grids with autonomous agents. If successful, it would mark the most direct competitive challenge to Apple’s core business in years. Industry analyst Ming-Chi Kuo has suggested the device could represent a fundamental shift in how users interact with their phones.
Apple alleges the misconduct extends well beyond Tan. A senior systems engineer named Chang Liu reportedly kept a company-issued laptop after leaving for OpenAI earlier this year and used it to download sensitive technical documents covering unannounced features, engineering presentations, and proprietary project data. Apple also claims OpenAI misled a manufacturing partner into using Apple’s proprietary metal finishing technique by falsely suggesting it had permission to do so.
The iPhone maker says it first raised concerns with OpenAI in February through a formal letter, which went unanswered. The company argues that only the court’s discovery process can reveal the full scope of what it describes as a normalized pattern of theft from OpenAI’s leadership.
OpenAI responded publicly after the filing, stating it has no interest in other companies’ trade secrets and remains focused on building innovative technology. The lawsuit seeks to block OpenAI from using any of Apple’s confidential information and demands the return of all materials.
Source: TechCrunch
