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Apple Sues OpenAI, Alleges Trade Secret Theft in Consumer Hardware Development

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Apple has filed a federal lawsuit against OpenAI, accusing the artificial intelligence company of misappropriating confidential information and trade secrets to support the development of its consumer hardware business.

The lawsuit, filed in the U.S. District Court for the Northern District of California on Friday, alleges that OpenAI unlawfully obtained Apple's proprietary technology through former employees and used confidential information related to unreleased products, manufacturing techniques, and internal development processes.

In its court filing, Apple claimed the alleged misconduct extended across multiple levels of OpenAI's hardware organization.

“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 the complaint.

The legal action marks a significant shift in the relationship between the two companies. Apple and OpenAI entered a high-profile partnership in 2024, bringing ChatGPT integration to Apple's ecosystem. However, the relationship reportedly deteriorated after OpenAI expanded into consumer hardware through its acquisition of former Apple design chief Jony Ive's startup, IO Products.

Among those named in the lawsuit is Tang Tan, OpenAI's Chief Hardware Officer and a former Apple executive. Apple alleges that Tang encouraged prospective employees who were still working at Apple to discuss confidential projects and present proprietary hardware components during recruitment interviews.

The complaint also names former Apple employee Chang Liu, alleging that he improperly retained an Apple-issued laptop after joining OpenAI. Apple further claims that OpenAI coached departing employees on how to avoid Apple's internal security procedures when leaving the company.

In addition, Apple alleges that OpenAI attempted to replicate a proprietary metal-finishing process developed by Apple by working with manufacturing partners without authorization.

Apple said it decided to pursue legal action after discovering what it described as substantial evidence suggesting confidential information relating to unreleased technologies and products had been improperly obtained.

OpenAI has denied the allegations.

"We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere," an OpenAI spokesperson said in a statement.

Apple has asked the court to award damages, issue injunctions preventing the use of its confidential information, and require OpenAI to cease any use of Apple's alleged trade secrets in its hardware development.

The lawsuit comes as OpenAI continues expanding beyond artificial intelligence software into consumer hardware and prepares for what industry observers expect could become one of the largest public offerings in the technology sector. Apple has not indicated whether the legal dispute will affect its existing partnership with OpenAI, including ChatGPT integration within Apple Intelligence.


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