Apple Sues OpenAI for Alleged Theft of Trade Secrets to Develop Hardware

Apple filed a lawsuit on Friday against OpenAI in a federal court in Northern California, accusing the AI company of stealing its trade secrets to develop its own consumer hardware products. Apple claims that OpenAI, from technical staff to its head of hardware, coordinated with business partners to misappropriate confidential information. The lawsuit demands damages, injunctions, and an order to stop OpenAI from using Apple’s trade secrets.

This legal action marks a sharp turn in relations between the two companies, which had announced a high-profile partnership in 2024 integrating ChatGPT into the iPhone operating system. OpenAI CEO Sam Altman even visited Apple’s headquarters for the announcement. However, tensions rose after OpenAI revealed plans last year to enter the hardware market by acquiring IO Products, a startup founded by former Apple designer Jony Ive, for $6.4 billion. Apple’s upcoming AI-enhanced Siri update will use Google’s Gemini models instead of OpenAI’s technology.

Apple’s claims focus heavily on former employees who joined or interviewed with OpenAI. The suit alleges that Tang Tan, OpenAI’s head of hardware and former Apple VP, instructed Apple employees interviewing at OpenAI to share Apple’s trade secrets and bring actual Apple components to interviews. Apple also accuses OpenAI of coaching departing employees on how to bypass security protocols and claims former Apple employee Chang Liu, now at OpenAI, stole an Apple laptop. Both Tan and Liu are named defendants.

Additionally, Apple alleges OpenAI is pressuring hardware partners to use a proprietary Apple metal finishing technique without Apple’s authorization. Apple’s spokesperson told CNBC that significant evidence shows OpenAI employees unlawfully took confidential Apple information about unreleased technologies and products. OpenAI responded that it has no interest in other companies’ trade secrets and remains focused on innovative technology development.

OpenAI has not announced when or what hardware products it will launch, though Altman said in November that initial prototypes are complete. Apple has not commented on whether the lawsuit will affect their ongoing partnership involving ChatGPT integration. The lawsuit adds legal risk for OpenAI as it prepares for a potentially historic initial public offering. This suit follows OpenAI’s recent legal victory over Tesla and SpaceX CEO Elon Musk, who plans to appeal a ruling against his claims that OpenAI breached nonprofit agreements.