Apple sues OpenAI over alleged theft of trade secrets for hardware division

Apple has sued OpenAI and two former employees, accusing the AI company of orchestrating a systematic campaign to steal trade secrets to build its own hardware division. The lawsuit, filed Friday in the Northern District of California, alleges that OpenAI poached Apple engineers and extracted confidential information about unreleased products and manufacturing processes Source: emolcl.

The Allegations

The complaint centers on two former Apple employees now at OpenAI. Chang Liu, a former senior electrical engineer, is accused of retaining an Apple laptop after resigning, exploiting an authentication flaw to access internal servers, and downloading thousands of pages of confidential technical documents, including a manual on iPhone motherboard fabrication Source: elmundoes. Apple also claims Liu coached other candidates on how to bypass security checks when leaving Apple Source: euronewses. Tang Tan, OpenAI's head of hardware and a 24-year Apple veteran, is alleged to have used codenames for secret Apple projects during interviews and instructed candidates still employed at Apple to bring physical components to "show and tell" sessions Source: elconfidencial. Apple further asserts that OpenAI contacted one of its manufacturing partners to execute a proprietary metal-finishing technique under false pretenses Source: clarin.

The Backdrop

The legal action marks a dramatic reversal for the two companies, which formed a partnership in 2024 to integrate ChatGPT into Apple devices. Relations soured after OpenAI acquired io Products, a design studio founded by former Apple design chief Jony Ive, for $6.5 billion Source: lavanguardia. Apple subsequently partnered with Google for its AI services.

The Fallout

OpenAI denied the allegations, stating it has "no interest in the trade secrets of other companies" Source: excelsiormx. The lawsuit also sparked a social media exchange between Elon Musk and Sam Altman, with Altman mocking Musk's obsession and Musk calling Altman a "swindler" Source: infobae. The suit could complicate OpenAI's plan for a high-profile initial public offering Source: excelsiormx.