Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of stealing trade secrets in an effort to develop its own consumer hardware device. The suit was submitted on Friday to a federal court in San Jose, California, alleging that OpenAI engaged in a coordinated campaign to poach Apple employees and extract confidential information related to unreleased Apple technologies, processes, and products.
The dispute marks a significant escalation in tensions between the two companies, which had previously partnered in 2024 to integrate OpenAI’s ChatGPT into Apple’s products. However, their relationship reportedly soured, with reports earlier this year indicating that OpenAI was contemplating legal action against Apple, accusing the tech giant of insufficiently promoting the ChatGPT integration.
Apple’s complaint specifically cites OpenAI, its hardware subsidiary io Products—which was co-founded by former Apple design chief Jony Ive—and two former Apple employees now with OpenAI: Tang Yew Tan, the company’s chief hardware officer, and engineer Chang Liu. The suit alleges that Tan, who worked at Apple for 24 years and was recently vice president of product design for the iPhone and Apple Watch, used confidential Apple project code names during OpenAI job interviews to probe candidates about unreleased Apple products. Apple claims that approximately 400 employees at OpenAI previously worked for the iPhone maker.
The lawsuit also describes instances where Apple employees were asked to bring physical components, such as batteries and circuit boards, to interviews for “show and tell” sessions, which Apple contends was part of OpenAI’s effort to gain access to proprietary information. Apple characterized its findings as only the “tip of the iceberg,” stating it has limited insight into activities occurring inside OpenAI.
Apple is seeking damages and an injunction to prevent OpenAI from using its confidential information. The company said the legal action followed unsuccessful attempts to resolve its concerns with OpenAI since February.
OpenAI, valued at about $852 billion and having raised over $180 billion from investors, has been pursuing expansion into consumer hardware as a key growth strategy. The lawsuit could pose significant challenges to OpenAI’s plans for an upcoming initial public offering.
In response to the allegations, an OpenAI spokesperson stated that the company has no interest in other firms’ trade secrets and remains focused on developing innovative technologies to empower users worldwide.
The legal confrontation highlights the complex dynamics between two major technology players as they navigate competition and collaboration in rapidly evolving sectors such as artificial intelligence and consumer electronics.