Apple Sues OpenAI, Accusing It of Stealing Trade Secrets

Apple filed a federal lawsuit against OpenAI on Friday, accusing the artificial intelligence company and two of its executives of stealing proprietary information about the iPhone maker's unreleased products, manufacturing processes and supply chain strategies in order to build OpenAI's own consumer hardware.

The civil complaint, filed in the U.S. District Court for the Northern District of California, names as defendants OpenAI's chief hardware officer Tang Yew Tan, a former Apple vice president who spent 24 years at the company helping design the iPhone, Apple Watch and iPod; Chang Liu, a former senior Apple electrical engineer who joined OpenAI earlier this year; and two OpenAI entities: the OpenAI Foundation and OpenAI Group PBC, as well as io Products, the design startup OpenAI acquired last year.

"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 said in the filing.

Apple alleged that Liu failed to return a company-issued laptop after leaving the company and later used an authentication vulnerability to access Apple's internal network, downloading dozens of confidential hardware-related files. The complaint also claimed that Tan, before departing Apple, emailed himself information about suppliers and internal industry summaries, and that he directed Apple employees interviewing for jobs at OpenAI to bring "actual parts" from Apple to the interviews for "show and tell" sessions.

"He has directed job candidates still working for Apple to bring 'actual parts' from Apple to their interviews for 'show and tell' sessions in which he and his team at OpenAI can elicit still more Apple confidential information," Apple said in the filing.

Apple said it reached out to OpenAI in February with concerns that its confidential information was making its way to the company, but received no response. The company said it later uncovered what it described as a "pattern of theft."

"Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes, and products," an Apple spokesperson said.

The Information, a technology news outlet, noted on X that the suit alleges former Apple employees brought "confidential documents, device parts and product details to OpenAI," writing in a post on X (@theinformation) that Apple accused OpenAI of "systematically stealing trade secrets to build its hardware business."

TrendSpider, a financial technology platform, highlighted additional allegations outlined in the complaint, writing in a post on X (@TrendSpider) that Apple accused OpenAI of coaching "departing Apple employees on how to evade security processes" and misleading business partners — details drawn directly from the filing.

OpenAI disputed the accusations. "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere," spokesperson Drew Pusateri said.

Digital Trends, a consumer technology publication, framed the suit in the broader context of the two companies' relationship, writing in a post on X (@DigitalTrends) that "OpenAI rescued Apple's misfiring AI efforts and made ChatGPT the foundation of Apple Intelligence," before Apple alleged its former employees stole trade secrets as OpenAI moved into hardware.

The lawsuit represents a significant shift in relations between the two companies, which entered a high-profile partnership in 2024 when ChatGPT was integrated into Apple's operating system. Since then, Apple has moved to use Google's Gemini AI models for some features in its updated Siri assistant.

OpenAI last year acquired io Products, a hardware startup co-founded by former Apple design chief Jony Ive, in a deal valued at approximately $6.5 billion. Apple noted in its filing that more than 400 former Apple employees now work for OpenAI.

Apple is seeking monetary damages, injunctions to block OpenAI from using any misappropriated information, and a court order compelling the company to cease the alleged conduct. OpenAI said it was reviewing the complaint.

The lawsuit adds legal pressure to OpenAI as the company prepares for what is expected to be a major initial public offering. The AI company confidentially filed its prospectus with regulators in June.