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Apple has filed a lawsuit against OpenAI and two former Apple executives, accusing the artificial intelligence company of misappropriating confidential trade secrets to accelerate the development of its own AI hardware for ChatGPT.
The complaint, filed in a federal court in California on Friday, alleges a coordinated effort to obtain Apple’s confidential information, including product designs, manufacturing processes and supply chain strategies, marking a significant escalation in tensions between the two technology companies. OpenAI did not immediately respond to requests for comment.
The lawsuit names former Apple employees Chang Liu, a senior system electrical engineer, and Tang Yew Tan, a former vice president of product design for the iPhone and Apple Watch, as defendants alongside the OpenAI Foundation, OpenAI Group PBC and io Products. None of the defendants immediately commented on the allegations.
According to the complaint, Liu failed to return a company-issued laptop after leaving Apple and later exploited an authentication vulnerability to gain access to Apple’s internal network, where he allegedly downloaded dozens of confidential hardware-related files.
Apple also accused Tan, now OpenAI’s hardware chief, of systematically using Apple’s proprietary information to benefit his new employer. The company alleges that before leaving Apple, Tan emailed himself confidential information about suppliers and internal industry analyses.
The lawsuit further claims Tan encouraged Apple employees interviewing with OpenAI to bring Apple components to interviews for “show and tell” sessions. Apple cited one incident in which an OpenAI job candidate allegedly remarked that they “didn’t even know we could take those from the office.”
Apple said more than 400 former employees now work at OpenAI, noting that while many possess valuable expertise, the company is not entitled to use Apple’s confidential information.
“That OpenAI now employs people who were once entrusted with Apple’s trade secrets does not entitle OpenAI to use that information to jumpstart its hardware efforts,” Apple said in its complaint.
OpenAI has not disclosed the exact nature of the hardware it is developing but has said it aims to create a new way for users to interact with artificial intelligence beyond traditional devices and interfaces. The project is part of a broader industry effort to bring AI into dedicated consumer hardware.
Apple argues that OpenAI’s hardware initiative was built, at least in part, on knowledge obtained from its confidential information.
The company also alleges that OpenAI employees sought proprietary information directly from Apple’s suppliers. In one instance, Apple claims, a supplier used a confidential metal-finishing technique for OpenAI after mistakenly believing Apple had authorised its use.
OpenAI expanded its hardware ambitions last year by acquiring io Products, a startup founded by former Apple design chief Jony Ive, in a deal valued at $6.5 billion. Ive is not named as a defendant in the lawsuit.
The legal action comes as competition between Apple and OpenAI intensifies in the race to develop next-generation AI technologies, fuelling fierce rivalry over talent and intellectual property.
Apple said it contacted OpenAI in February to express concerns that its confidential information was being used by the AI company and sought discussions on the matter, but received no response.
A news agency reported in May, citing a person familiar with the matter, that OpenAI had been exploring legal options against Apple, including alleging a breach of contract, although no lawsuit was filed.
Despite the dispute, the two companies remain commercial partners. In 2024, Apple integrated ChatGPT into its Apple Intelligence platform, allowing Siri to access ChatGPT responses and enabling iPhone users to subscribe to ChatGPT directly through iOS settings.
Apple also rolled out a long-awaited overhaul of Siri last month, two years after first announcing plans for a major upgrade. Source: Al Jazeera