Apple Sues OpenAI Over Alleged Theft of Trade Secrets for Hardware Development

Apple has filed a lawsuit against OpenAI in the Northern District of California federal court, accusing the AI company of stealing trade secrets and intellectual property to advance its hardware products. The complaint alleges that OpenAI systematically obtained confidential Apple information through former employees and candidates still employed at Apple during job interviews. Documents submitted to the court claim that OpenAI coordinated with technical staff and business partners to acquire proprietary data.

This legal action marks a significant shift in relations between the two companies, which had announced a partnership earlier in 2024 integrating ChatGPT into the iPhone operating system. Apple’s claims intensified after OpenAI entered the hardware market by acquiring IO Products, founded by former Apple designer Jony Ive, for $6.4 billion.

Central to Apple’s allegations is the conduct of Tang Tan, a former Apple vice president now leading hardware at OpenAI, who allegedly encouraged Apple employees and candidates to disclose confidential information during interviews and to bring actual Apple product parts to "show and tell" sessions. Apple also accuses OpenAI of instructing former employees on how to bypass Apple’s security protocols and claims that ex-employee Chang Liu stole an Apple laptop after joining OpenAI. Additionally, Apple alleges OpenAI misled hardware manufacturers into using a proprietary Apple metal finishing technique under false pretenses.

Apple is seeking damages, injunctions, and court orders to compel OpenAI to cease using the allegedly misappropriated information. OpenAI responded by denying any interest in other companies’ trade secrets and emphasized its focus on developing innovative technology to empower people worldwide.