Apple has filed a lawsuit against OpenAI, accusing the AI giant and two former Apple employees of stealing confidential information to support the development of competing hardware.

The federal lawsuit, filed in the Northern District of California, names OpenAI, its chief hardware officer Tang Tan, technical staff member Chang Liu and hardware startup IO Products as defendants.

Both Tan and Liu previously worked at Apple before joining OpenAI.

“This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information,” Apple said in the filing.

The case marks a significant deterioration in the relationship between Apple and OpenAI, which entered into a high-profile partnership in 2024 to integrate ChatGPT into Apple’s operating systems and Apple Intelligence.

OpenAI chief executive Sam Altman attended Apple’s headquarters for the announcement of the partnership.

However, tensions between the companies have reportedly grown since OpenAI announced plans to enter the consumer hardware market and acquired IO Products, the startup founded by former Apple designer Jony Ive, for $6.4bn.

Tan is leading OpenAI’s efforts to develop its own devices, which could allow the AI company to reach consumers directly rather than relying on products made by companies such as Apple.

Apple alleged that Tan directed current Apple employees interviewing for roles at OpenAI to disclose confidential information during the recruitment process.

“He has directed job candidates still working for Apple to bring ‘actual parts’ from Apple to their interviews for ‘show and tell’ sessions in which he and his team at OpenAI can elicit still more Apple confidential information,” Apple said in the filing.

The iPhone maker also alleged that Tan emailed himself confidential information relating to Apple’s suppliers.

Apple accused OpenAI of coaching departing Apple employees on how to evade the company’s security processes. It further alleged that Liu stole an Apple laptop before joining OpenAI.

The company said it does not have full visibility into how OpenAI may have used the information but claimed that evidence had emerged suggesting its confidential material had been taken.

“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,” an Apple representative told CNBC in a statement.

Apple also claimed that OpenAI has asked hardware companies to carry out a metal-finishing technique invented by Apple while “misleading the partner to believe they had Apple’s permission to do so.”

OpenAI rejected the allegations.

“We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere,” a representative for OpenAI said in a statement.

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OpenAI has not announced what its first consumer hardware product will be or when it will launch. However, Altman said in November that the company had completed its first prototypes.

Apple’s updated Siri assistant, announced in June and due to be released this autumn, is powered by Google’s Gemini AI models rather than OpenAI’s technology.

Apple has not said whether the legal dispute will affect its existing partnership with OpenAI, which includes the integration of ChatGPT into Apple Intelligence.

The iPhone maker is seeking damages and injunctions, as well as an order preventing OpenAI from continuing to use its alleged trade secrets.