Apple sues OpenAI, alleging theft of trade secrets for hardware development

Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence firm of orchestrating a campaign to steal the iPhone maker's trade secrets. The suit, lodged in a federal court in San Jose, California, alleges that OpenAI aggressively sought to poach Apple employees and extract confidential information to build its own consumer hardware device.

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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.

This legal action marks a significant escalation in tensions between the two companies, which initially partnered in 2024 to integrate ChatGPT into Apple's products. The relationship has since soured, with reports emerging in May that OpenAI was considering legal action against Apple for allegedly failing to adequately promote the ChatGPT integration.

"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 stated in its 41-page complaint. The company is seeking damages and an injunction to prevent OpenAI from using its confidential information, asserting that the lawsuit became necessary after OpenAI did not respond to concerns Apple raised in February.

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Significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes and products.

The suit names OpenAI, its hardware subsidiary io Products (co-founded by former Apple design chief Jony Ive), and two former Apple employees: Tang Yew Tan, now OpenAI's chief hardware officer, and engineer Chang Liu. Apple claims Tan used confidential project code names during OpenAI job interviews to probe candidates about unreleased Apple products. The complaint also states that approximately 400 OpenAI employees are former Apple staffers. Apple described its findings as "the tip of the iceberg," indicating limited visibility into OpenAI's internal activities.

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We will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so.