Apple has filed a federal lawsuit against OpenAI, accusing the AI company of orchestrating a systematic campaign to steal trade secrets for its consumer hardware push. The suit, filed in the Northern District of California on July 10, names OpenAI, its hardware subsidiary io Products, and two former Apple employees now at OpenAI: chief hardware officer Tang Yew Tan and engineer Chang Liu. Apple alleges that Tan and Liu used their knowledge of Apple's confidential projects, supplier relationships, and unreleased products to accelerate OpenAI's hardware development. Source: AP News Source: CNA
Apple claims that Tan directed Apple employees interviewing at OpenAI to bring physical components—such as batteries, circuit boards, and prototypes—for 'show and tell' sessions. Liu is accused of failing to return a company laptop, using an authentication bug to access Apple's internal network, and downloading dozens of confidential hardware-related files after leaving for OpenAI. Source: Engadget Source: The Verge The complaint also alleges that Tan emailed himself information about Apple suppliers before his departure. OpenAI now employs more than 400 former Apple workers. Source: Tom's Hardware
The lawsuit marks a dramatic rupture between former partners. Apple and OpenAI teamed up in 2024 to integrate ChatGPT into Apple devices, but tensions grew as OpenAI moved into hardware—acquiring io Products (founded by ex-Apple design chief Jony Ive) for $6.5 billion. Bloomberg previously reported that OpenAI was considering its own legal action against Apple over insufficient promotion of the ChatGPT integration. Source: CNBC Source: Wired
“"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 41-page complaint.”
“Drew Pusateri, a spokesman for OpenAI, told the BBC: "We have no interest in other companies' trade secrets."”
“Apple also claims that Tan "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."”
“Liu is accused of accessing Apple's systems after leaving the company and downloading information, including "dozens of Apple's confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data."”
“It's a shocking reversal for the two companies, which entered into a high-profile partnership in 2024 when ChatGPT was integrated into the iPhone's operating system.”
“"OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," Apple says in the lawsuit.”