Apple Sues OpenAI Over Trade Secrets
Apple has initiated a lawsuit in federal court located in Northern California, claiming that OpenAI has appropriated trade secrets and sensitive information to create consumer hardware. The company asserts that this effort involved employees at “every level,” purportedly aiming to steal Apple’s innovative designs and technology.
According to reports, this lawsuit represents a significant shift in the dynamics between the two companies, as Apple accuses OpenAI of extensively copying its intellectual property. The complaint suggests that OpenAI systematically gathered Apple’s confidential materials across various levels of its organization.
Apple’s legal documentation indicates that the alleged theft has occurred at all tiers of OpenAI’s framework. “But this much is clear: At every level, from members of the technical staff to the chief hardware officer, and in collaboration with business partners, OpenAI is stealing Apple’s trade secrets and confidential information,” Apple noted in its court filing.
This lawsuit marks a dramatic turn of events for both companies, which had previously established a prominent partnership in 2024. At that time, they had announced plans to integrate ChatGPT into the iPhone operating system, with OpenAI’s CEO Sam Altman visiting Apple’s headquarters to unveil this collaboration. However, tensions escalated once OpenAI indicated intentions to enter the hardware sector.
A critical factor in this rift was OpenAI’s acquisition of IO Products for $6.4 billion. This startup, founded by ex-Apple designer Jony Ive, has also been named as a defendant in the lawsuit. OpenAI has yet to share specific information regarding its hardware products, but Altman hinted last November that a prototype had been developed.
Apple’s complaint centers on allegations involving former Apple employees who either interviewed with or joined OpenAI. Notably, OpenAI’s head of hardware, Tang Tan—a former Apple vice president—is explicitly mentioned in the lawsuit. Apple claims Tan instructed current Apple employees interviewing at OpenAI to divulge proprietary company information during the hiring process.
“He directs job candidates still working at Apple to bring ‘real parts’ of Apple to their interviews for ‘show-and-tell’ sessions, where he and his team at OpenAI can extract even more Apple confidential information,” Apple stated in its filing.
The lawsuit also alleges that OpenAI guided departing Apple employees on how to bypass security measures upon leaving the company. Furthermore, Apple accuses another former employee, Chang Liu, who joined OpenAI, of stealing Apple laptops. Liu is also named in the lawsuit.
Additionally, Apple alleges that OpenAI compelled its hardware manufacturers to utilize metal finishing techniques developed by Apple, misrepresenting the situation to those partners to suggest they had Apple’s approval to use its proprietary methods.
An Apple representative commented, “Significant evidence has recently come to light suggesting that individuals employed by OpenAI have improperly removed Apple’s confidential information about our unreleased technologies, processes, and products.”
In response, OpenAI stated, “We are not interested in the trade secrets of other companies. We remain focused on building innovative technology that empowers people everywhere.”
