Apple Unleashes Legal Storm: Sues OpenAI Over Alleged Trade Secret Theft

Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of stealing trade secrets to aid in its development of proprietary hardware for ChatGPT. The legal action, filed in a California federal court, alleges that OpenAI encouraged former Apple employees it was recruiting to share confidential information, even providing guidance on how to avoid detection when transitioning to new roles.

The lawsuit specifically names two former Apple employees, Tang Tan and Chang Liu, who are now working for OpenAI. Tang Tan, who played a crucial role in designing products like the iPhone, Apple Watch, and iPod, is now OpenAI’s chief hardware officer. Chang Liu, a former electrical engineer, was reportedly entrusted with some of Apple's most sensitive product development efforts before joining OpenAI earlier this year.

According to Apple’s filing, the company initiated an investigation into potential compromises of its confidential information, which uncovered a "pattern of theft" by former employees moving to OpenAI. Allegations include Liu accessing and downloading several confidential hardware-related files from an Apple-issued device after his departure. Furthermore, Apple claims Tan instructed job candidates still employed by Apple to bring "actual parts" from Apple to their interviews at OpenAI.

OpenAI has stated it is reviewing the filing. A spokesperson for OpenAI, Drew Pusateri, commented that the company has "no interest in other companies’ trade secrets" and remains focused on developing innovative technology. Apple claims it reached out to OpenAI in February regarding its concerns, but received no response. An Apple spokesperson affirmed the company's commitment to defending its teams' hard work and innovations.

The lawsuit highlights a significant shift in the relationship between Apple and OpenAI. While the two companies partnered in 2024 to integrate ChatGPT as an AI-powered "answer engine" on the iPhone, their alliance has increasingly veered towards rivalry. OpenAI's expansion efforts include recruiting former Apple designer Jony Ive to lead a project for an AI-powered device, which many analysts believe could challenge Apple's existing products.

As part of this collaboration, OpenAI acquired io Products, a company co-founded by Ive, Tan, and two others, in a deal reportedly valued at nearly $6.5 billion. This acquisition itself led to a separate trademark infringement lawsuit filed by a startup, iyO Inc., against Ive and OpenAI CEO Sam Altman due to a similar company name and past interactions. iyO Inc. also added trade secret theft claims against Tan to its lawsuit. Apple's current lawsuit also names io Products as a defendant.

OpenAI has been actively pursuing its hardware ambitions, with its chief financial officer, Sarah Friar, confirming plans for "consumer hardware that will come towards the end of this year." This legal challenge from Apple adds another layer of complexity for OpenAI, which is also exploring a potential public offering and facing intense competition from rivals like Anthropic and Google.