Apple sues OpenAI for allegedly stealing trade secrets as battle for AI gadgets intensifies

OpenAI pushes back on Apple trade secret lawsuit

OpenAI pushed back Tuesday against allegations made by Apple in a trade secret lawsuit, suggesting the complaint lacks merit. "While we take these allegations seriously, we're not aware of any evidence that this complaint has merit," OpenAI said in a statement, first shared by Bloomberg reporter Ed Ludlow on X. "We believe in fair competition and allowing people the freedom to work wherever they choose, and we're focused on building innovative technology that empowers people everywhere." The statement comes several days since Apple filed a lawsuit against the AI lab, alleging that OpenAI employees, who previously worked at the iPhone maker, engaged in a coordinated effort to obtain confidential information and intellectual property. The 41-page complaint, filed Friday in the U.S. District Court for the Northern District of California, contains a string of allegations against OpenAI leadership, including Chief Hardware Officer Tang Tan. Before joining OpenAI, Tan was a veteran at Apple, where he worked for 24 years and held top positions, including vice president of product design for the iPhone and Apple Watch. This is the first time OpenAI commented on the case itself. In its initial statement hours after Apple filed its lawsuit, it proclaimed a lack of interest in technology developed by other companies telling TechCrunch: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." Apple claims in its lawsuit that its internal investigation uncovered evidence that OpenAI and its partners used the company's confidential information as it develops its own hardware product. Reports, along with OpenAI's recent acquisition of Jony Ive's startup io, suggest the company is working on a device that could directly compete with Apple's business. Bloomberg reported on Tuesday that OpenAI is working on a mobile, screen-free smart speaker. TechCrunch has reached out to OpenAI for further comment and will update this article when the company responds.

Apple Is Suing OpenAI for Allegedly Stealing Hardware Secrets

Apple filed a lawsuit against OpenAI and its hardware chief on Friday for allegedly stealing the iPhone-maker's trade secrets, including unreleased parts and prototypes, confidential designs, and documents about stealth projects. The lawsuit accuses OpenAI chief hardware officer Tang Tan, who spent 24 years at Apple and oversaw iPhone product design, and his colleagues at the AI company of encouraging people departing or considering leaving Apple to bring with them proprietary and unreleased technology. Tan allegedly helped coach recruits on how to evade Apple's data security protocols and directed them to bring confidential Apple parts to job interviews at OpenAI. "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, which was filed in US district court in San Jose. The company describes OpenAI as resorting "to taking unlawful shortcuts" while under "mounting pressure to deliver its first commercial hardware product." OpenAI and Tan did not immediately respond to requests for comment. Apple spokesperson Hannah Smith says the company "will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so." The lawsuit opens what may become the highest-stakes and most dramatic battle over intellectual property theft in Silicon Valley since autonomous ride-hailing company Waymo in 2017 accused Uber of stealing hardware designs when it brought on a former Waymo engineer who had left with thousands of confidential files. Uber agreed to pay $245 million to settle the lawsuit during the middle of a trial the following year. Apple and OpenAI have been partners since 2024, when the companies announced a landmark deal to distribute ChatGPT on iPhones, Macbooks, and iPads. But the relationship has frayed in recent years, prompting Apple to rely more on Google's Gemini AI technology as the foundation for the company's in-house AI models. OpenAI and Apple are expected to more fiercely compete in the coming years in the emerging market for AI-powered consumer devices. OpenAI has hired more than 400 former Apple employees, according to the lawsuit. That includes several former Apple veterans who are leading OpenAI's development of AI-powered consumer devices. Last year, OpenAI paid $6.5 billion to acquire a startup called io Products that was cofounded by longtime Apple executives including Tan, Scott Cannon, Evans Hankey, and famed designer Jony Ive. io Products and Chang Liu, an electrical engineer at OpenAI who was at Apple until January, are also named as defendants in the lawsuit. (Liu didn't immediately respond to a request for comment.) Apple's investigation into the alleged theft relies on data and messages gathered from its employees' devices. The company caught onto the alleged theft early this year after Liu never returned his company-issued laptop and wrote to a former colleague about still having access to Apple's internal file-sharing system, according to the lawsuit. (Apple says in the filing that Liu's access was enabled by a bug that's now been fixed.) Liu "downloaded dozens of Apple's confidential hardware-related files," including a presentation on manufacturing and testing complex circuit boards used in Apple's hardware, the lawsuit states. It adds that Liu also coached an Apple employee he was recruiting to join OpenAI on how to "'avoid trouble with the security team' when copying confidential Apple files." Apple wrote to OpenAI in February raising initial concerns about alleged theft but did not receive any response. That led to further investigation and the filing of the lawsuit. Apple learned that before leaving, Tan emailed himself information about the company's suppliers. Other employees leaving for OpenAI have done the same, Apple alleges. In addition, 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," the lawsuit alleges, naming batteries, logic boards, and shields as sought-after components. In another instance, Apple identified a then-Apple employee "screenshotting and downloading files relating to a highly confidential Apple project" in the hours before an interview with Tan at OpenAI. Tan is further accused of taking an internal Apple document for managers that explains security procedures for departing workers. He and OpenAI recruiters have allegedly used the file to counsel departing Apple employees to avoid disclosing their new employer, prolong access to company systems, and avoid signing any exit documents. "Unsurprisingly, Apple has uncovered a concerning recent pattern among employees who depart and then go work for OpenAI," the lawsuit states. "Departing employees have been taking actions to evade security measures, such as failing to provide two-weeks' notice, and ignoring outreach by security personnel to schedule exit processes and security reviews." Apple's accusations against OpenAI's io unit include that it has approached at least two of the iPhone maker's suppliers aiming to replicate work. One company carried out "a specific trade secret metal-finishing technique for OpenAI" after being misled into thinking that Apple had signed off on the project, according to the lawsuit. OpenAI approached the other supplier, which works on batteries, with "targeted questions" to learn more about Apple components and further its own interests, the lawsuit adds. OpenAI has said relatively little about its hardware efforts, except for the fact that it's developing a "family" of AI-powered devices. While OpenAI previously planned to use the io branding for its hardware products, the company has since indicated in court filings that it will choose a new name, and won't ship any devices to customers until at least April 2027. Reports indicate that OpenAI is working on an AI-powered puck that sits on a tabletop, and that users can control with their voice. Apple is seeking an injunction barring OpenAI from continuing to engage in the alleged theft. It also seeks monetary damages and a return of any pilfered property and data.

The wildest allegations in Apple's trade secrets lawsuit against OpenAI

Apple's trade secret lawsuit against OpenAI is packed with a number of extraordinary allegations that paint a picture of a coordinated effort to extract confidential information from current and former Apple employees. But what's perhaps most striking is how casually the alleged misconduct is described, including one message that reads, "LOL, I found out I can access the [network storage], so funny." The 41-page complaint, which was filed on Friday, is filled with unusually detailed allegations, like this and others. Here are some that stood out the most to us. * "Normalized and exemplified by leadership." With this description of OpenAI, Apple is making it clear its lawsuit isn't just focused on rogue employees, but that misconduct like this is part of OpenAI's culture and is led from the top. * "Rotten to its core." Leave it to Apple to work a rotten fruit analogy into its criticism of OpenAI's behavior in this case. The AI model maker is rumored to be working on a hardware device to challenge the iPhone, potentially a smartphone of its own. But Apple wants to stress that what OpenAI is developing was allegedly built with Apple's trade secrets. "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," the complaint states. * "This is the tip of the iceberg." In addition to documenting the allegations against its former employees, Apple is suggesting that the alleged misconduct outlined in the complaint is only a fraction of what it will uncover after the discovery process gets underway. In discovery, corporate documents and communications, including texts and emails, are obtained, potentially uncovering other examples of this kind of behavior at OpenAI. "Discovery will expose that the misappropriation has been occurring on a scale many times greater than the several instances described below," Apple's complaint states. * "LOL, I found out I can access the [network storage], so funny." Apple says that Chang Liu, previously a senior systems electrical engineer at Apple before joining OpenAI, sent this message to an Apple employee, Yu-Ting "Alyssa" Peng, who allegedly was a conduit between Apple and OpenAI. Peng later left to join OpenAI herself, but is not a defendant in the lawsuit. Peng allegedly replied to the message, "I'm ready." Apple claims that Liu was able to access Apple's systems by exploiting an authentication bug, which he did from his former colleague's Apple-issued work computer. * "I still have another computer." Liu allegedly also texted this within hours of leaving Apple, referring to another Apple computer he allegedly planned to use to access Apple's confidential information. Apple discovered the message on his former colleague's Apple-issued work laptop. * "Didn't even know we could take those from the office." One of the wilder allegations is that OpenAI job candidates working at Apple were directed by OpenAI Chief Hardware Officer Tang Yew Tan, who spent 24 years at Apple, most recently as VP of product design for iPhone and Apple Watch, to bring "actual parts" from Apple to their interviews at OpenAI for "show and tell sessions." One candidate was surprised by the request, saying he didn't even realize that Apple parts could be taken out of the office, Apple alleges. Apple also says employees were instructed to bring "CAD/design artifacts" and "prototypes" to interviews. * Avoiding the "dreaded walkout." Apple alleges that OpenAI coached departing Apple employees on how to evade Apple's security procedures to reduce the chance their alleged trade secret theft would be caught. The complaint claims that OpenAI circulated an internal Apple document bearing a "Need to know" designation to new hires with details of how to avoid the "dreaded walkout," which would immediately remove them from Apple after giving notice, instead of letting them continue to work for the typical two weeks, which would allow them more time to access Apple's confidential information. * "Let OpenAI know 'asap'" if asked to sign anything when quitting Apple. In addition to helping OpenAI job candidates avoid Apple's security procedures, the complaint alleges that if Apple asked departing employees to sign anything at an exit interview, they should let OpenAI know immediately, and advised them not to sign. * "Over four hundred former Apple employees now working at OpenAI." Another surprise: the complaint reveals the extent to which Apple employees have left the iPhone maker to work for OpenAI. Apple leverages this figure to paint a picture of the potential scale of the problem, noting that "it is not surprising that certain OpenAI personnel have knowledge of Apple's confidential and proprietary information, which they are obligated to keep confidential. But OpenAI has resorted to exploiting this confidential information..." * "io...access, exploited and used Apple's secret, proprietary industrial design techniques, processes, and know-how related to metal-finishing." Founded by former Apple employees, including Jony Ive, the company io was acquired by OpenAI last year in a $6.5 billion deal. Now, io is a defendant in this lawsuit, as Apple alleges that the firm used its industrial design techniques by misleading Apple's partner into believing that it had Apple's permission to carry out a "confidential metal-finishing technique," the complaint states. Apple also alleges that OpenAI approached a supplier using its confidential information about design and components related to power and batteries, even using "internal terminology" to ask targeted questions that "only Apple-insiders would know to ask.") * "Apple is left with no choice." Though seemingly typical legal language, in this case, it appears that Apple may have tried to resolve the situation outside the courts first. The tech giant says that it first tried to contact OpenAI in February, raising its concerns, but OpenAI never responded. So far, OpenAI has only commented publicly via a statement shared on X on Friday, which reads: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."

Apple vs. Open AI Explained: The Battle for AI Gadgets Begins With a Juicy Lawsuit

Bridget has spent over 18 years as a consumer tech reporter, hosting daily tech news shows and writing syndicated newspaper columns. She's often a guest on national radio and television stations, including ABC, CBS, CNBC and NBC. Apple's lawsuit against OpenAI is full of astonishing accusations and details, with Apple alleging it uncovered a pattern of theft of Apple's trade secrets. Apple's complaint mostly points the finger at a few ex-Apple employees that now work at OpenAI, the maker of ChatGPT. OpenAI has faced quite a number of lawsuits lately on how it does business, but Apple's suit brings a different twist. If this case goes to trial, it could reveal the secret hardware that OpenAI has long teased. A trial could seek damages if Apple's work is being used to help develop some sort of rival AI device. Would a lawsuit spill the beans on a device -- or several devices -- before OpenAI is ready to launch? This week's episode of One More Thing, embedded above, goes into the juicy details of the suit and what happens next. OpenAI CEO Sam Altman says he's not afraid of Apple, but maybe he should be. Taking rivals to court is part of the Apple playbook, and the company knows how to do it well. The fight could also drag in a few famous Apple faces. Apple's former design chief, Jony Ive, is now working on making AI gadgets for OpenAI. That means Apple lawyers might call to the stand the former designer of the iPhone, to see if he used information stolen from Apple. (Awkwaaard.) For more One More Thing, subscribe to our YouTube page to catch Bridget Carey breaking down the latest Apple news and issues every Friday.

The 6 wildest claims in Apple's lawsuit against OpenAI

When Apple employees interviewed for jobs at OpenAI, the AI startup's hardware head allegedly asked them to show up with something unusual: components they were working on and unreleased product samples. That's according to a blockbuster lawsuit filed by Apple, which accuses OpenAI of stealing confidential documents, spying on hardware prototypes, and tricking one of its trusted partners into performing a proprietary product design technique. The lawsuit primarily revolves around the actions of three people: They're accused of being part of an ongoing scheme to steal Apple's secrets as OpenAI plans its first AI hardware device, which is supposed to be coming next year. Here are the most surprising claims in Apple's 41-page filing. After announcing plans to leave Apple, Liu allegedly didn't respond to requests to sign a confidentiality reminder, schedule an exit interview, or confirm that he returned company-owned devices, as is standard with departures at Apple. Instead, Apple claims Liu "failed to return at least one Apple-owned computer," and told another employee, Peng, that he still has "another computer." Liu also allegedly accessed Apple's cloud-based network storage weeks after he left the company, using an authentication vulnerability that Apple didn't know about. "Mr. Liu celebrated his find with Ms. Peng and set about exploiting it: 'LOL, I found out I can access the [network storage], so funny,'" Apple claims. "Ms. Peng's response was immediate: "'I'm ready.'" Apple accuses Liu of downloading dozens of confidential files from its storage system, including documents containing technical specifications, details about unreleased products, and engineering presentations, including one detailing the manufacturing and testing of Apple's main logic boards. In the months following Liu's departure, Peng allegedly kept Liu in the loop about Apple's projects, engineering details, and vendor relationships. "Ms. Peng and Mr. Liu would engage in depth about those confidential projects, while Mr. Liu was working on developing OpenAI's competing hardware," Apple claims. "Mr. Liu's work for OpenAI was informed by a steadily flowing stream of Apple's trade secret information from Ms. Peng." Apple also claims that Liu informed Peng on how to access and copy files from Apple's devices "to avoid trouble with the security team," while pointing her to "specific Apple project folders and proprietary engineering data." Peng departed Apple for OpenAI in April 2026. Tan is accused of soliciting Apple's trade secrets during interviews with OpenAI job candidates -- and quizzing them on it. Apple claims Liu told Peng about how another former Apple employee "fumbled" his answers to a question Tan asked about "a top-secret project for an unreleased new Apple product." Liu then allegedly downloaded "some info" using his access to Apple's network to help Peng prepare for her interview. In another instance, Apple claims another former employee began "screenshotting and downloading files relating to a highly confidential Apple project" before an interview with OpenAI. Tan is accused of asking for more information about that same project during the interview. Last year, Tan admitted to receiving confidential information about an AI hardware startup before joining Ive's io. Aside from asking for more information about Apple's secret projects, Tan is accused of telling interviewees to bring hardware components and product samples from their work at Apple for "show and tell sessions:" For example, messages left on an Apple-issued work device show that Mr. Tan instructed an Apple employee to "bring some parts [she] worked on" such as "Batteries," "SIP" (Systems-in-Package), "mlb" (multi-layer or main logic boards), and "shields" and that it may "be good to show" other interviewers these Apple components. Additionally, OpenAI is accused of asking interviewees to prepare "Technical Deep Dive" presentations, with slides revealing confidential information from their work at Apple. Apple claims Tan kept an internal document that outlines employee offboarding procedures. OpenAI allegedly used this information to warn employees coming from Apple about the company's security checks, and "coached" them on how to avoid it. The AI giant also advised departing Apple workers not to disclose their new employer, and also offered tips on how to avoid a "dreaded walk out," which would result in their immediate removal from the company, preventing them from accessing Apple's systems for a standard two weeks, the lawsuit alleges. OpenAI is accused of telling Apple employees not to "sign anything at the exit interview," and if they're asked to sign a document, to tell OpenAI "asap." In the lawsuit, Apple says that OpenAI's alleged tactics "appear to be having their desired effect." Apple claims it has noticed "a recent trend of employees who are leaving Apple for OpenAI and taking steps to evade security measures," including workers "ignoring outreach by security personnel to schedule exit processes and security reviews." Apple claims OpenAI has used its confidential information to approach its "trusted partners," including one that carries out a proprietary, multi-step metal-finishing technique for its products. OpenAI allegedly misled Apple's partner, making the company believe that OpenAI had Apple's permission to use the metal-finishing technique. "Apple has not given OpenAI or io permission to use or a license to any of Apple's trade secrets or confidential information, including those it has entrusted with this partner," Apple says. Apple also accuses OpenAI of approaching "at least" one other supplier that works with Apple on manufacturing related to power and batteries. OpenAI allegedly used confidential information and internal codenames to ask "targeted questions" about Apple's components "that would be useful in furthering OpenAI's hardware ambitions." OpenAI spokesperson Drew Pusateri provided this statement to The Verge on Friday: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."

Apple sues OpenAI over alleged trade secret theft

Apple filed a lawsuit Friday against OpenAI over allegations of trade secret theft and breach of contract. The iPhone maker alleges that this misconduct, which it says reveals a pattern of theft from OpenAI employees who previously worked at Apple, was directed by OpenAI's senior leadership, including Chief Hardware Officer Tang Tan. The lawsuit, which was filed in the U.S. District Court for the Northern District of California, accuses Tan of using Apple's confidential project code names during OpenAI's recruiting process, asking job candidates to bring in Apple hardware components to their interviews, coaching departing Apple employees on how to evade the company's security procedures, and asking for details about the company's unannounced products. Before joining OpenAI, Tan had spent 24 years at Apple, most recently as VP of product design for the iPhone and Apple Watch. The accusations come at a time when OpenAI is rumored to be developing its first hardware product, which would likely compete with the iPhone. In April, industry analyst Ming-Chi Kuo suggested this device could be a smartphone that would rely on AI agents instead of apps. If true, it would be one of the largest threats to Apple's core hardware business to date. Apple's former lead designer Jony Ive's device startup io was acquired by OpenAI last year in a $6.5 billion deal to aid the AI company with its hardware ambitions. While io was named in the filing, Ive was not. Tan is not the only OpenAI employee referenced in the new complaint. Apple also alleges that Chang Liu, who spent eight years at Apple as a senior systems electrical engineer, failed to return an Apple-issued laptop after leaving the company for OpenAI in 2026 and had used the computer to download confidential Apple technical documents. Apple says in the complaint that the stolen documents included information about unannounced technologies, features, and products, including technical specifications, engineering presentations, and proprietary project data. Liu is also accused in the lawsuit of sharing Apple's confidential information with other Apple employees applying for jobs at OpenAI, advising at least one of them on what to study before their interview. Apple sent a letter to OpenAI in February to raise its concerns, and received no response, the company said in the complaint. It alleges that the behavior of these former employees is part of OpenAI's strategy to extract Apple's confidential information, which included asking Apple employees to bring designs and prototypes to their interviews, and answer questions about things like component and vendor selection processes. Apple says its ongoing investigation revealed that OpenAI and its partners have even used Apple's confidential information while the AI model maker develops its own hardware product. For instance, the filing references a proprietary metal finishing technique that was used by OpenAI after it allegedly misled a partner into believing it had Apple's permission to do so. Like many tech companies, Apple typically investigates potential trade secret theft or other improper activity by analyzing communications that took place on company-owned devices and reading through its server logs. By taking the case to court, Apple will have an opportunity to learn more about the extent of the alleged operation through the legal discovery process. Apple is asking the court to bar OpenAI from using or disclosing its trade secrets, require the company to return any confidential Apple materials, and preserve evidence related to the case. "This is the tip of the iceberg. Apple lacks visibility into what's been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership," the filing states. "As a natural result, OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets." In a prepared statement, Apple also said the following: "At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. 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. We will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so." OpenAI was asked for comment. This story is developing and will be updated.

Apple Sues OpenAI, Alleges Its Hardware Business Is 'Rotten to the Core'

Apple is suing OpenAI for alleged trade secret theft, accusing the company and two staffers of stealing the iPhone maker's confidential information to help build its own hardware. "As a natural result, 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 claimed in the lawsuit, which was first reported by The Wall Street Journal. Apple filed the lawsuit in a US district court, naming the former employees as well as io Products, a startup from former Apple design chief Jony Ive. Last year, OpenAI acquired io, which has been developing a mysterious AI-powered device for Sam Altman's company. However, Apple claims it has uncovered evidence that OpenAI has been conspiring to steal its trade secrets by poaching employees or pressuring them to divulge their work during job interviews. "Unsurprisingly, Apple's investigation has found a pattern by employees who depart for OpenAI of taking steps to evade the security processes intended to protect Apple's confidential information," the company says. In the 41-page complaint, the company names former Apple VP of Product Design Tang Yew Tan and ex-iPhone electrical engineer Chang Liu as two major culprits, who've both joined OpenAI. Tan has been interviewing Apple employees interested in jumping ship to OpenAI, asking them to discuss unannounced products or even to bring actual hardware to interviews. Meanwhile, Liu at one point hacked Apple's shared network folders using a software bug. "He celebrated his improper access, exclaiming in a message left on his colleague's Apple-issued work laptop 'LOL' and that it was 'so funny,'" the complaint says. "Then, over several weeks, while developing hardware for OpenAI, Mr. Liu surreptitiously accessed and downloaded dozens of Apple's confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data." OpenAI has allegedly been trying to piggyback on Apple's supply chain by working with its trusted partners behind the company's back. "This is the tip of the iceberg. Apple lacks visibility into what's been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership," the lawsuit adds. "Apple's investigation has uncovered misconduct reaching across seniority levels, technical disciplines, and departments at OpenAI." Apple suggests, however, that OpenAI is "under mounting pressure to deliver its first commercial hardware product and facing the reality that building a successful consumer device business from scratch is more complex, time-consuming, and difficult than it anticipated, [so] OpenAI has resorted to taking unlawful shortcuts." OpenAI didn't immediately respond to a request for comment. But the lawsuit suggests a major breakdown in the relationship between the two companies after OpenAI partnered with Apple in 2024 to integrate ChatGPT with Apple Intelligence. Apple has since decided to offer an upgraded Siri AI later this year based on Google's Gemini models. If Apple's lawsuit proceeds, the controversy could blow up even further. "This lawsuit and the discovery process are needed to expose and begin to remedy the pervasive theft of Apple's trade secrets," the complaint noted. "Apple's lawsuit is demanding the court block OpenAI from using the trade secrets and erasing evidence of the illegal acts, force them to return "all of Apple's property in their possession," and pay up in damages and royalty fees." Disclosure: Ziff Davis, PCMag's parent company, filed a lawsuit against OpenAI in April 2025, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.

Apple sues OpenAI over alleged theft of trade secrets -- claims company mentored potential

Apple filed a federal lawsuit against OpenAI on Friday, accusing the AI company and its chief hardware officer of stealing its trade secrets. "OpenAI and its cohorts, led at least in part by former Apple employees, have recruited candidates from Apple, extracted their knowledge of Apple's sensitive and confidential information, and then continued to exploit that knowledge once they arrived," the complaint reads. "As a result, OpenAI has misappropriated Apple's trade secrets and confidential information in a variety of ways." The suit, filed in the Northern District of California, names OpenAI technical staff member Chang Liu, chief hardware officer Tang Tan, OpenAI, and io Products as defendants. The last of that group is notable because it was founded by Tan in collaboration with former Apple design head Jony Ive, Evans Hankey (Ive's successor at Apple), and former Apple designer Scott Cannon. Notably, the complaint seems to attempt to avoid naming the founders, though Ive's name is cited in a URL. Tan previously served as a vice president of product design at Apple, working on the iPhone, AirPods, and Apple Watch. Liu served at Apple as a senior electrical engineer. In the complaint, Apple alleges that it reached out to OpenAI in February with concerns, but that OpenAI did not respond. Apple claims that Tan attempted to gain secrets from Apple employees, including asking prospective job candidates to bring components for "show and tell" sessions and used his knowledge of the company to squeeze more information out of candidates. The suit claims that Liu never returned a company laptop, and used an authentication bug to access Apple files. Apple also claims that OpenAI told incoming employees how to leave their former job, suggesting they stay as long as possible and not disclose their former employer in order to continue to access confidential information. "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," the suit reads. "As a natural result, OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets." OpenAI did not immediately respond to a request for comment from Tom's Hardware. Apple's lawsuit claims that over 400 former Apple employees currently work at OpenAI. Apple is rumored to be working on a number of AI-powered hardware projects, including AirPods with cameras, a pendant, and home robots. It's less clear what hardware OpenAI may be working on, though The Information suggested the company has a HomePod-style smart speaker in the works. Apple is requesting a jury trial, damages, attorney fees, and orders that the OpenAI may not use Apple's trade secrets, among other injunctions. In May, Bloomberg reported that OpenAI was considering legal action against Apple because it expected deeper integration and more users from ChatGPT features built into iOS. If the trial does go to court, it's sure to be a dramatic one, potentially dragging several former high-level Apple employees into testimony through discovery and testimony.The trial, Apple Inc. v. Liu et al, is case 5:26-cv-07078 in the United States District Court in Southern California. Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.

Apple accuses OpenAI of stealing its core tech secrets

Apple has filed a lawsuit against former employees who now work at OpenAI, and the AI upstart itself, alleging theft of intellectual property. Cupertino's complaint [PDF] opens with an accusation that a former employee joined OpenAI after eight years at Apple, and on his way out dodged an exit interview and didn't return his work laptop. The filing alleges that once he "exploited a rare, previously unknown authentication bug to access Apple's shared network folders" - but didn't report the bug, return the laptop, or delete the program that allowed the access. Apple alleges its former staffer then "surreptitiously accessed and downloaded dozens of Apple's confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data." The company claims the man then used that info to help OpenAI. Another staffer who jumped from Apple to OpenAI allegedly emailed himself supply chain information, and once working for the AI company was present in interviews that tried to lure other employees of the iGiant. In those chat, the filing alleges, the former Apple staffer asked candidates who still worked for Cupertino for updates on secret internal projects - and even used code names. "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," the filing alleges. "These directions to bring Apple's parts to OpenAI job interviews surprised at least one of the candidates, who commented that he 'didn't even know we could take those from the office'." Apple also alleges that OpenAI coached those bailing from Cupertino on how to hide their intentions, so they can prolong their stay at Cupertino and therefore access more useful info. "The Corporate Defendants, with or through their employees or partners, have been acting in concert and as an enterprise, exploiting Apple's confidential information to advance OpenAI's efforts to enter the consumer hardware market," Apple alleges. "They have used confidential Apple information in approaching Apple's trusted partners, even having one carry out a specific trade secret metal-finishing technique for OpenAI, misleading the partner to believe they had Apple's permission to do so." The filing says the above represents "the tip of the iceberg" and alleges that plumbing the depths of OpenAI's attempt to build a hardware business would likely find more abuse of Apple's IP. The filing suggests Apple was able to gather digital evidence from the two employees named in the suit, an important allegation because trade secrets cases can be hard to prosecute as it's hard to prove whether a former staffer shared information stored in their wetware. Apple can presumably present witnesses to some of the other allegations. "Apple does not bring this action lightly," the filing states. "Apple operates in the most competitive markets in the world and focuses on creating and shipping the very best products and services that embody its innovations." "But it cannot tolerate the theft of its trade secrets. In light of the troubling evidence it has seen so far, Apple is left with no choice. This lawsuit and the discovery process are needed to expose and begin to remedy the pervasive theft of Apple's trade secrets." OpenAI's communications boss Drew Pusateri used his X account to deny Apple's allegations. "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere," he wrote. The upstart's ambition to create a consumer tech business carries enormous risk, as any vendor requires enormous resources to manufacture, market and support AI gadgetry. Even Google has struggled to win more than a few percent of the smartphone market, while Meta's long effort to create virtual reality eyewear has not resulted in huge sales. Both of those tech giants are massively profitable. OpenAI makes massive losses and will likely do so for the foreseeable future, largely due to the huge sums required to build AI infrastructure with uncertain ROI. ®

Former Apple Employees Stole Trade Secrets for OpenAI, Lawsuit Alleges

Named a Tech Media Trailblazer by the Consumer Technology Association in 2019, a winner of SPJ NorCal's Excellence in Journalism Awards in 2022 and has three times been a finalist in the LA Press Club's National Arts & Entertainment Journalism Awards. Apple has sued OpenAI, accusing the company of stealing its trade secrets. In a complaint filed in the US District Court for the Northern District of California on Friday, Apple alleges it "uncovered a pattern of theft of Apple's trade secrets by OpenAI employees who were formerly at Apple." Along with ChatGPT maker OpenAI, Apple named two individuals in the suit: OpenAI's Chief Hardware Officer Tang Tan, who previously worked at Apple for 24 years, and software engineer Chang Liu, who had worked at the company for 8 years before moving to OpenAI. Tech companies have been poaching top tech talent in a rapid-fire, billion-dollar hiring spree over the past few years as they race to develop advanced AI. But this is the first major lawsuit alleging that some of those job-hopping employees are illegally sharing their former employers' secrets with their new bosses. (Disclosure: Ziff Davis, CNET's parent company, in 2025 filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.) In the filing, Apple says it "entrusted Mr. Tan with its most sensitive projects, trusted partner relationships, proprietary manufacturing techniques, and unreleased products" during his tenure as vice president of product design for iPhone and Apple Watch. "Apple's investigation has revealed that Mr. Tan has been methodically using Apple's confidential information to benefit OpenAI," Apple alleges. That included emailing himself information about Apple's suppliers before Tan left the company, according to the filing. He allegedly asked OpenAI applicants who currently worked at Apple about unannounced products during interviews, using the project codenames. Apple also alleges Tan told "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." In the complaint, Apple alleges Liu, who worked at Apple as a senior system electrical engineer, failed to return an Apple-issued work laptop. He then allegedly accessed Apple's shared network folders, and "surreptitiously accessed and downloaded dozens of Apple's confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications and proprietary project data." Apple called these instances "the tip of the iceberg" in the complaint, noting that it "lacks visibility into what's been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership." It alleged that, "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets." OpenAI CEO Sam Altman's leadership style has been questioned before, causing the company's board in 2023 to briefly fire him, saying he was misleading board members and investors. He was quickly returned to his role after employee backlash. In February, when Apple's investigation had just begun, the company says it wrote to OpenAI, voicing its concerns about improper access to Apple's confidential information. It asked OpenAI about the precautions it was taking to avoid the issue, and asked the company to investigate and correct the situation. Apple says OpenAI never responded. The goal of the suit is to stop OpenAI's alleged theft of trade secrets, Apple notes. OpenAI has reportedly been looking to push ahead in its hardware ambitions, with products like AI earbuds and a smartphone. The move could provide OpenAI with a significant source of revenue beyond its subscription tiers, particularly as it burns through investor money. It also has a partnership with Apple that involves integrating ChatGPT into Siri for responding to more complex queries; it's not clear what'll become of that partnership following the suit. Former Apple Chief Design Officer Jony Ive's company, io Products, merged with OpenAI in 2025. Ive is not mentioned by name in the filing, though Apple points to articles about OpenAI's hardware goals and Ive's involvement. OpenAI is no stranger to lawsuits. Publishers have accused the company of scrapping copyrighted works to train large language models like ChatGPT. They also allege OpenAI withholds evidence about how it trains its AI models. The safety of its products has also been questioned. In just one of several similar suits, a mother sued OpenAI earlier this year, claiming interactions with its chatbot led to her daughter's death. This mounting scrutiny comes as OpenAI weighs plans to become a publicly traded company. It's not yet clear when that could happen, but Apple's suit could complicate those efforts -- especially if it undermines OpenAI's hardware goals. Apple has been broadening its AI partnerships, tapping into Google's Gemini models to help power this year's updates to Apple Intelligence and Siri. Meanwhile, reports suggest OpenAI may be considering legal action against Apple, alleging ChatGPT should have been more deeply integrated into Siri and other apps.

Apple sues OpenAI, two former employees for trade secrets theft

July 10 (Reuters) - Apple (AAPL.O), opens new tab on Friday filed a lawsuit against OpenAI and two former employees, alleging misappropriation of the iPhone maker's trade secrets to benefit the ChatGPT-owner's foray into consumer hardware. The complaint, filed in the U.S. District Court for the Northern District of California, alleges a coordinated effort to steal Apple's confidential information, including product designs, manufacturing processes and supply chain strategies. The lawsuit is against former senior system electrical engineer of Apple Chang Liu and former vice president of product design for iPhone and Apple Watch Tang Yew Tan, as well as OpenAI Foundation, OpenAI Group PBC ⁠and io Products. It dramatically escalates tension between Apple and the ChatGPT maker that has been simmering for months. OpenAI did not immediately respond to a Reuters request for comment. Apple alleged that Liu had failed to return a company-issued work laptop and later used an authentication bug to access Apple's internal network, downloading "dozens of Apple's confidential hardware-related files." The company also claimed that Tan "has been methodically using Apple's confidential information to benefit OpenAI" by emailing himself information about Apple suppliers and internal industry summaries before his departure. A person familiar with the matter told Reuters in May that OpenAI ⁠was exploring legal options against Apple, including notifying the technology giant of a breach of contract but potentially not filing a full lawsuit. The tensions between the two tech companies have strained their relationship and shown how the race to develop AI products has intensified competition for talent and proprietary technology. In 2024, Apple announced ⁠integration of its "Apple Intelligence" technology across its apps including Siri and brought OpenAI's chatbot ChatGPT to its devices. Their partnership allows users to access ChatGPT results through Siri, while iPhone users can also sign up for ⁠ChatGPT memberships directly from the iOS settings menu. OpenAI bought hardware startup io Products, founded by former Apple designer Jony Ive, last year in a $6.5 billion deal, underscoring its push to move ⁠beyond software into consumer hardware. Ive is not named in the lawsuit. Last month, Apple rolled out a long-delayed overhaul of Siri. The update comes two years after Apple first promised major upgrades that were repeatedly delayed. Reporting by Jaspreet Singh in Bengaluru; Editing by Maju Samuel Our Standards: The Thomson Reuters Trust Principles., opens new tab

Apple sues OpenAI for stealing top-secret information

Apple has accused OpenAI and two of its employees of stealing top-secret information in a lawsuit filed in a California federal court on Friday, as the relationship between two of the biggest names in Silicon Valley unravels. Apple claimed that the ChatGPT maker has used former and current Apple employees to steal hardware designs as the start-up prepares to launch its own AI-focused devices. It alleged that this was part of a pattern of misconduct normalised by OpenAI's top leadership. "Significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes, and products," Apple said. "We will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so." The lawsuit marks a breakdown in the relationship between Apple and OpenAI as each encroaches on the other's territory: Apple, with the launch of its new ChatGPT-like Siri in June, and OpenAI with its plan to take on the iPhone. OpenAI signalled its plan to compete with Apple in the consumer device space when it acquired io, the studio led by Apple's former design chief Jony Ive, for $6.4bn in May last year. OpenAI has since aggressively poached employees from Apple, part of a broader trend of AI talent leaving the company. While OpenAI in 2024 became Apple's first big partner in the AI space, integrating ChatGPT into Siri, Apple has since partnered with Google for its newest features. But an internal investigation Apple launched earlier this year -- and said it warned OpenAI about without receiving a response -- led to Friday's lawsuit. Apple alleged that the evidence detailed in the complaint was just the "tip of the iceberg" at OpenAI, "where such misconduct is normalised and exemplified by leadership." "As a natural result, OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," the lawsuit said. Tang Tan, OpenAI's chief hardware officer, left Apple in early 2024 to join Ive's outfit before it was acquired by OpenAI. Tan had a 24-year career at Apple that included a spell as vice-president of product design for the iPhone and Apple Watch. The lawsuit alleged that Tan met OpenAI in the months before he left Apple, sharing confidential information about the company's suppliers. Now, "[w]hen interviewing Apple employees for jobs at OpenAI, Mr. Tan uses Apple's confidential information to gain access to even more insider knowledge," it said. Apple claimed that Tan and OpenAI had instructed Apple employees to bring digital designs and prototypes from the highly secretive tech company to interviews at the AI start-up for "show and tell sessions" and technical deep dives. Chang Liu, a former electrical engineer at Apple, worked on some of the company's "most sensitive product development programs" before he joined OpenAI in January of this year, according to the lawsuit. Apple alleged that Liu failed to return at least one work device and did not respond to queries about whether he had complied with other "exit procedures". The lawsuit also claimed that Liu used the computer of a friend still working at Apple to access trade secrets and coached her on how to copy files while evading Apple's security before she departed for OpenAI in April. Liu further exploited a "vulnerability" in Apple's network storage to steal dozens of confidential files after he left the company, the lawsuit said. Apple said Liu texted his friend "LOL, I found out I can access the [network storage], so funny." Other former Apple employees have similarly taken confidential information with them "on their way out the door", according to the lawsuit. Apple is seeking a legal injunction that will prevent OpenAI, Tan and Liu from destroying evidence relating to its claims and "return all copies of Apple's trade secrets and confidential information". It is also asking for damages or royalties from any misappropriated trade secrets. "At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously," Apple said in a statement. OpenAI did not immediately respond to a request for comment.

Apple sues OpenAI for allegedly stealing hardware secrets

Apple has sued OpenAI, alleging that former employees that now work for the AI company have stolen Apple's trade secrets "for the benefit of OpenAI." In its complaint, Apple alleges that it has uncovered "a pattern of theft of Apple's trade secrets by OpenAI employees who were formerly at Apple," and it names IO Products (Jony Ive's hardware startup that OpenAI bought in 2025), Tang Tan (OpenAI's chief hardware officer), and Chang Liu (who joined OpenAI from Apple in January) as defendants. An Apple spokesperson shared this statement with 9to5Mac: At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. 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. We will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so. Apple and OpenAI didn't immediately reply to requests for comment from The Verge.

Apple files lawsuit accusing ChatGPT maker OpenAI of stealing trade secrets

Apple on Friday accused OpenAI of stealing trade secrets as it seeks to build its own hardware for ChatGPT, a major rupture in a partnership between the iPhone maker and the artificial intelligence company. Apple said in the lawsuit filed in a California federal court that the theft of its trade secrets was part of a "coordinated pattern of misconduct at an institutional level" by OpenAI. "This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," the filing says. "Apple brings this suit to put a stop to it." Two former Apple employees who now work for OpenAI are also named as defendants. One is Tang Tan, who helped design the iPhone, Apple Watch and iPod and is now OpenAI's chief hardware officer. The other is Chang Liu, a former electrical engineer Apple says it entrusted with some of its most sensitive product development efforts before Liu left Apple to join OpenAI earlier this year. OpenAI did not immediately respond to requests for comment. OpenAI has never said exactly what type of device it is building but has described it as an effort to find a new way of interacting with AI that goes beyond "traditional products and interfaces." It's part of a broader push to create a physical embodiment of the latest AI advances, a decade after Amazon and Google introduced screen-free talking speakers into homes. The lawsuit claims the effort was built partly on knowledge stolen from Apple.

Apple calls OpenAI's hardware business 'rotten to its core' in trade secret theft lawsuit - Engadget

The lawsuit also names io Products, the hardware company led by Jony Ive. Apple is suing OpenAI and two of its former employees who currently work at the AI company, for theft of its trade secrets. In a lawsuit filed in federal court Friday, Apple alleges extensive misconduct by the company it once partnered with, describing its hardware business as "rotten to its core." The lawsuit also names io Products, the Jony Ive-led hardware startup acquired by OpenAI last year, as complicit in the trade secret theft. It doesn't mention Ive by name, but described the organization as complicit in "a coordinated pattern of misconduct at an institutional level" within OpenAI. The filing also names Chang Liu, a former senior system electrical engineer at Apple, and Tang Yew Tan, a former Apple VP who is now OpenAI's Chief Hardware Officer. Apple claims that both Liu and Tan shared trade secrets with OpenAI. Liu, according to Apple's lawyers, "surreptitiously accessed and downloaded dozens of Apple's confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data." 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." OpenAI didn't immediately respond to a request for comment on the allegations. The company "never responded" when Apple reached out about its concerns, the lawsuit says. In the filing, Apple says that it's likely not aware of the full extent of OpenAI's misconduct. "This much is clear, however: 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," it says. "As a natural result, 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 sues OpenAI alleging trade secret theft, says scheme was 'at every level'

Apple on Friday sued OpenAI in federal court in Northern California, alleging trade secret theft, saying that the artificial intelligence lab took the iPhone maker's intellectual property in order to develop its own consumer hardware. "This much is clear, however: 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," the company said in a legal filing. 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 CEO Sam Altman visited Apple's headquarters for the announcement. But relations between the two companies have chilled since OpenAI announced plans to enter the hardware industry last year, when it bought former Apple designer Jony Ive's startup, called IO Products, for $6.4 billion. Apple's updated version of its Siri assistant, which is coming out this fall, is based on Google's Gemini AI models instead of ChatGPT. Most of Apple's allegations involve former employees who have interviewed with or joined OpenAI.

Apple is suing OpenAI, alleging former employees stole trade secrets to build AI hardware

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Sounding off: OpenAI has spent years developing an as-yet-unrevealed hardware platform for its generative AI technology with help from former Apple engineers. On Friday, however, Cupertino filed a lawsuit against Sam Altman's company, accusing it of building its entire hardware project on confidential information stolen from Apple. Apple has sued OpenAI for allegedly stealing its trade secrets to develop an AI-focused device and other hardware. Apple alleges that as over 400 former employees left to join the ChatGPT maker, many of them routinely accessed Apple's confidential data related to unreleased products. The lawsuit, filed in the US District Court for the Northern District of California, primarily targets Chang Liu and Tang Tan, who were senior Apple employees before joining OpenAI's hardware efforts. Apple accused them of masterminding a pattern of hiring Apple employees who brought trade secrets with them. Liu was an Apple senior electrical engineer for eight years before joining OpenAI in January, while Tan helped design the iPod, iPhone, and Apple Watch during his time at Apple. Tan left Cupertino in 2024 to co-found hardware startup io alongside fellow Apple design veteran Jony Ive - a company OpenAI later acquired. The engineers have reportedly been designing a screenless device that leverages OpenAI's technology to assist users by constantly recording visual and audio data and responding in context. Altman has said the product does not aim to replace smartphones, just as smartphones did not replace laptops. OpenAI is also said to be developing a smartphone that primarily runs AI apps, which might not emerge until 2028. In a statement to 9to5Mac, Apple claimed to have significant evidence that OpenAI employees used their old Apple credentials to access the company's networks and copy confidential files. When recruiting former Apple employees, Liu and Tan also allegedly instructed them on how to extract files and devices from Cupertino while avoiding security measures. Liu reportedly celebrated the exploit in messages to a former colleague, suggesting he knew exactly what he was doing. Apple also accused OpenAI of tricking its partners into divulging trade secrets by leading them to believe it had the company's approval. For example, it allegedly misled one of Apple's third-party partners into revealing details of a metal-finishing technique it performs for Cupertino. OpenAI is also said to have gathered information from Apple partners related to power, batteries, and other components. Apple brought its accusations to OpenAI's attention in February but received no response. The iPhone maker is seeking injunctive relief and damages. OpenAI, for its part, began preparing possible legal action against Apple in May, after an agreement to leverage ChatGPT to enhance Siri failed to deliver the results it expected. Apple's lawsuit states that its complaint does not involve that collaboration.

Apple sues OpenAI, its employees claiming theft of trade secrets

Apple has accused OpenAI of gaining access to valuable inside information through the hiring of its former employees. In a federal lawsuit filed on Friday, Apple sued the artificial intelligence (AI) company, two of its employees, as well as io Products, claiming it has engaged in "a pattern of theft" of Apple's confidential product development and related work. At least two long-time Apple workers who left the company to join OpenAI allegedly took part in this pattern by, in part, emailing themselves internal Apple information. Drew Pusateri, a spokesman for OpenAI, told the BBC: "We have no interest in other companies' trade secrets."

Apple Sues OpenAI, Accusing It of Stealing Company Secrets

Apple on Friday accused OpenAI of stealing secrets about products still in development, setting up a legal face-off between two of the world's biggest tech companies. In a lawsuit filed in U.S. District Court for the Northern District of California, the consumer tech giant said that OpenAI, a leader in artificial intelligence that has a new hardware business, had asked job candidates from Apple to share details about secret projects and to bring device components and prototypes to their interviews. Apple also accused an OpenAI employee of downloading internal documents from a laptop owned by the iPhone maker. OpenAI used the confidential information to approach Apple's manufacturing partners, including asking one partner to demonstrate Apple's technique for finishing metal on its devices, the lawsuit says. Apple sent a letter to OpenAI in February to raise concerns that confidential information could be "making its way to OpenAI's business improperly," according to the suit. OpenAI did not respond, Apple said. "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 wrote in its lawsuit. OpenAI did not immediately respond to a request for comment. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied those claims.) Apple's lawsuit against OpenAI adds to a souring partnership between the tech titans. Apple has largely remained on the sidelines of A.I., even as other technology giants spend hundreds of billions of dollars building A.I. models and data centers and as start-ups push the envelope on the technology. To help catch up, Apple struck a deal with OpenAI in 2024 to use the A.I. start-up's technology to overhaul its products, including its digital assistant Siri. But OpenAI grew disappointed by how Apple integrated ChatGPT, and has even considered legal action. In January, Apple said it was partnering with Google to power Siri and its other A.I. products. Adding to the tension, OpenAI, which has confidentially filed for an initial public offering, is creating a new family of hardware products itself. OpenAI last year paid $6.5 billion to buy IO, which at the time was a one-year-old design studio founded by Jony Ive, Apple's former longtime design head. Engineers and designers have steadily departed Apple for OpenAI since the deal. In its lawsuit Friday, Apple accused Tang Tan, OpenAI's chief hardware officer and a former Apple executive, of coaching his hires from Apple on how to evade Apple's security processes for departing employees. Mr. Tan did not immediately respond to a request for comment. Apple accused another former employee, Chang Liu, of using a former colleague's Apple-owned laptop to access and download technical documents while working at OpenAI. Mr. Liu told that Apple employee what information about unannounced products she should study before job interviews, Apple said. Mr. Liu also planned to access internal documents through an Apple-owned laptop that he didn't return when he left the company, according to the lawsuit. Mr. Liu did not immediately respond to a request for comment. OpenAI had misled the manufacturing company it approached to learn about the metal finishing technique to believe it had Apple's permission to view it, according to the lawsuit. Apple is seeking an injunction that would prevent OpenAI from possessing, using or sharing Apple's trade secrets, as well as an order requiring OpenAI to return Apple's intellectual property.

Apple's suit is already hurting OpenAI's iPhone-killer

Apple's trade-secret case against OpenAI could take years to resolve. Bloomberg reports the damage is already landing: chilled recruiting, a device launch under a cloud, and a defensive crouch just as OpenAI heads for its IPO. Apple may not need to win to slow the company most determined to end the iPhone era. Apple's lawsuit against OpenAI may not reach a courtroom for years. It is already doing damage. When Apple sued OpenAI on Friday for stealing hardware trade secrets, the attention went to the lurid detail. There were "show and tell" interviews and an engineer who kept his work laptop. One even texted a colleague: "LOL, I found out I can access the [network storage]". The more consequential story is quieter. The suit itself, long before any verdict, threatens to slow the company working hardest to build a rival to the iPhone. The damage starts now That is the argument Bloomberg's Mark Gurman laid out this week, and it is hard to dispute. A trade-secret fight forces new legal reviews, tighter internal controls, and hours of depositions and discovery that pull engineers away from building. Former Apple staff at OpenAI may go quiet about their old work, and managers may steer around whole lines of questioning. The result is a slower, more cautious organisation, exactly when speed is the point. There is a sharper risk too. If Apple proves OpenAI built its secrets into a product, a court could order a redesign. That would echo Apple's settlement with the chip startup Rivos. Bloomberg Intelligence expects Apple to win early, targeted relief that isolates disputed material and forces OpenAI to preserve evidence and certify compliance. None of that needs a jury. A device on the line The timing could hardly be worse for OpenAI. It still hopes to announce its first hardware product this year and ship it in 2027, with an iPhone rival as the eventual goal. That push runs through io, the design firm co-founded by Jony Ive. OpenAI bought it in May 2025 for roughly $6.5bn, according to Apple's complaint. OpenAI has the software: its latest models rank among the best around. What it has struggled to build is the hardware to put them in, and the lawsuit now shadows every design decision the team makes. The talent machine Apple wants to stop At the heart of it are people. More than 400 former Apple employees now work at OpenAI, and the poaching did not stop when Apple's investigation began. As recently as June, OpenAI hired Apple's smart-glasses chief, Gurman reported. Apple's complaint describes a "checklist that Tang put together", named for OpenAI hardware chief Tang Tan, to help new hires dodge Apple's exit security. It also quotes a departing engineer's colleague, Alyssa Peng, replying "I'm ready" when asked to help pull files. Months later, she left for OpenAI too. Why Apple's case is harder than it looks Winning may be another matter. California does not enforce non-compete clauses, and it largely rejects the "inevitable disclosure" doctrine. So Apple cannot simply sue over the 400 departures, legal specialists told Business Insider. Every claim has to rest on conduct: retained devices, unauthorised access, coached evasion. The real exposure, several noted, is the supply chain. Apple alleges OpenAI had a shared manufacturing partner carry out a proprietary metal-finishing technique, misleading it into believing Apple had agreed. No employee needed to carry anything out of the door. An IPO under a cloud All of this lands as OpenAI heads for the public markets. Its valuation has run from about $29bn in 2023 to $852bn by April 2026. It has raised more than $180bn and, in the complaint's words, burns cash "at a historic pace". The company already faces 42 state attorneys general and awkward questions after being leapfrogged by Anthropic. Apple's suit, rooted in a soured ChatGPT-Siri partnership, is one more cloud over the listing. Apple, meanwhile, is pressing on with its own hardware roadmap and a fresh wave of AI wearables. OpenAI, for its part, says it has "no interest in other companies' trade secrets". But whether or not Apple ever proves its case, it may already have won the thing that matters most: time. Every month OpenAI spends lawyering is a month it is not shipping the device meant to make the iPhone obsolete.

Apple accuses OpenAI of stealing secrets to fast-track its hardware ambitions

Apple claims the alleged misconduct was coordinated, not isolated, and involved proprietary product development, manufacturing, and supplier data. Apple's relationship with OpenAI has just taken a dramatic turn. The tech giant, which partnered to bring the popular AI-powered chatbot to the iPhone two years ago, is now suing OpenAI, alleging that its expansion into AI hardware was based on confidential Apple trade secrets allegedly stolen by former employees. Bloomberg reports that Apple's lawsuit names OpenAI; its hardware division, io Products; and former Apple employees Tang Tan and Chang Liu. Tan, who now serves as the chief hardware officer for OpenAI following the company's acquisition of Jony Ive's io Products, previously helped develop products such as the iPhone and Apple Watch. Liu joined OpenAI earlier this year after working as an Apple electrical engineer. According to the complaint, Apple believes the alleged theft wasn't limited to a few rogue employees. The company says that OpenAI carried out what it calls a coordinated effort to obtain Apple's proprietary product development, manufacturing and supplier information to expedite its hardware ambitions. Apple said Tan allegedly encouraged job applicants to bring Apple components or proprietary information to interviews, while Liu allegedly kept sensitive Apple files when he left the company and accessed confidential engineering data without authorization. The case concerns OpenAI's expanding hardware plans. The company has been working with former Apple designer Jony Ive on a new category of AI devices since acquiring io Products. Apple says those efforts have been unfairly guided by knowledge taken from its internal development process, rather than built independently. Apple is seeking damages and an injunction to prevent OpenAI from using or profiting from the allegedly misappropriated trade secrets. The lawsuit also demands the return or destruction of any confidential Apple materials still in the defendants' possession. As of this writing, OpenAI has not publicly responded to the allegations. Regardless of the outcome of the case, the lawsuit escalates the race to build AI hardware, where the fight is no longer just about smarter models but also about who owns the ideas behind the devices that will power them.

Apple sues OpenAI, alleging the AI company stole trade secrets

SAN FRANCISCO -- Tech giant Apple sued ChatGPT-maker OpenAI on Friday, alleging the artificial intelligence company stole its trade secrets as part of efforts to build out a competing hardware business. "This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI. Apple brings this suit to put a stop to it," Apple's lawyers said in a complaint filed in federal court in the Northern District of California. The complaint alleges that OpenAI leaders asked Apple employees to share information, including showcasing parts of new devices, during hiring interviews. OpenAI's head of hardware, former Apple employee Tang Tan, is also named in the complaint. Spokespeople for OpenAI did not immediately return a request for comment. The Washington Post has a content partnership with OpenAI. The explosive allegations set up what is likely to become a titanic battle between one of the tech industry's most powerful legacy companies and one of its fastest-growing up-and-comers. The lawsuit could also weigh over OpenAI's plans to go public at some point in the coming months amid fierce competition in the AI industry. Apple, which ushered in the mobile internet era with its iPhones nearly 20 years ago, has struggled to adapt to the age of AI. Just two years ago, Apple and OpenAI struck a deal for Apple to use OpenAI's AI technology in its products, but little appeared to come from the collaboration. In January, Apple said it would instead use Google's Gemini AI technology in upcoming launches. Aaron Schaffer contributed to this report. This is a developing story and will be updated.

Report: Apple Sends Legal Letters to Dozens of OpenAI Employees

Apple has reportedly sent legal letters to dozens of former Apple employees now working at OpenAI, telling them to preserve potentially relevant documents and communications as it continues to pursue its trade secret lawsuit against the AI company. The Financial Times ($) reports that Apple has targeted around 40 former employees with legal preservation letters, acting on its belief that the alleged misappropriation of confidential information may extend beyond the individuals named in its original complaint. The development follows Apple's lawsuit filed last week against OpenAI, in which the company alleges a coordinated effort to obtain confidential information relating to its hardware engineering and product development. Apple claims OpenAI recruited key engineers, including former Apple executives Tang Tan and Chang Liu, and benefited from proprietary designs, manufacturing processes, and other trade secrets. Tan is OpenAI's Chief Hardware Officer and a 24-year Apple veteran who led product design, while Liu is on the hardware team at OpenAI after working as a senior system electrical engineer at Apple. The complaint says that more than 400 former Apple employees now work at OpenAI and suggests that the alleged misconduct is broader than a few isolated actions by individual employees. OpenAI has denied the allegations, saying in a statement to Bloomberg this week that it is "not aware of any evidence that this complaint has merit." Apple has requested an injunction requiring OpenAI to cease using any Apple information during the development of OpenAI's AI hardware device. Apple is also seeking damages and suing Tan and Liu for breach of contract for violating their employment agreements. The company believes the evidence uncovered so far may represent only the "tip of the iceberg," according to its lawsuit.

Apple's accusations against OpenAI are the stuff of AI nightmares

Who says summer is slow for Apple news?! Apple sues OpenAI for theft of trade secrets [over-the-top very obviously fake gasp] The most egregious of the allegations is against former Apple senior systems electrical engineer Chang Liu, who Apple says did almost everything short of stealing John Ternus's Trapper Keeper marked "BIG SECRETS, DO NOT TAKE OUT OF APPLE PARK, EYES ONLY, THIS MEANS YOU!" under which there is a poorly drawn skull and crossbones, and personally delivering it while cackling to Sam Altman. To be fair, Apple does say the current allegations are just "the tip of the iceberg" so maybe he did that, too. The Wall Street Journal offered a take that one might be inclined to describe as "OpenAI-friendly," assuming one is able to read and digest information and has a subscription to The Wall Street Journal: Apple's 'Thermonuclear' Response to the OpenAI Threat In one of his last acts as Apple's chief executive before successor John Ternus takes over... It's July and he doesn't step aside (up, over, around, whatever) until September, so it's more realistically one of his last 10,000 acts but, okay, sure. [OpenAI] has built powerful AI models and is working toward an unspecified "family of devices" to run them, devices that could supplant Apple's. The first half of that sentence is technically true, but when the most popular AI endeavors are all deep in the red, it's not exactly clear why you'd want to have a hit AI product. Sure, things can change, but the Macalope will take the vulnerability exhibited by record quarter after record quarter any day. You could also note that no AI company has created a hit hardware product of any kind, period. Simply assuming they're going to soon is some real magical thinking. In discussing Apple's rivals, WSJ brings up other ongoing litigation involving the company. Elon Musk has also chafed at Apple's control of the digital economy. A unit of SpaceX is suing Apple for disadvantaging its AI app... Yes, let's turn now to the feelings of a guy who, it has been charged, is responsible for the deaths of over 700,000 people because of his know-nothing involvement in international aid. Say, remember how Musk offered to end world hunger if someone would just show him how it's possible, and several people did and Musk, a la Mr. Burns, said "Mmm, no, I'd still prefer not"? Here the Macalope would often quip "Good times." but the times were not, in fact, good in any way. One wonders how much more horrible stuff Musk has to do to stop getting treated as just a standard businessman engaged in simple business things by the press. Apple says it doesn't suppress rivals but who knows, really? A rather telling detail left out of that anecdote is who Musk thinks Apple is in cahoots with in disadvantaging his AI app. That would be a little company called OpenAI. As John Gruber notes, it's a little odd that Apple would still be deliberately favoring OpenAI given that it's now suing the company. The irony of Apple's case against OpenAI is that Apple itself has so frequently been accused of stealing other companies' ideas that it has spawned a new verb, "sherlocking,"... Oh, yes, let's conflate copying a feature someone else implemented by re-making it yourself from scratch with stealing the method someone else came up with in order to make something. There is a rather big difference between making your own spreadsheet software and stealing the source code to Excel, recompiling it and try to sell it as AAA Spreadsheet. You'd think a publication that purports to specialize in business would know that. The stupid thing is there is a better example WSJ could have used here: the Apple Watch blood oxygen patent infringement suit. But it just couldn't resist there being a nickname for Apple copying features. WSJ concludes by saying Apple won't be able to rely on legal means to beat AI hardware, that ultimately it... ...falls to product development, an area where Ternus will have to surpass his predecessor if he wants to maintain Jobs's legacy. It's a shame he doesn't have any expertise in product development. Wait. One word you won't find in this article is "bubble." WSJ simply takes it as writ that the AI revolution is real and spectacular, and Apple is desperate to prevent these companies from creating their iPhone-killing hardware. Which they're going to do while hemorrhaging money and engaged in enough infighting to embarrass the Borgias. The recent backlash against AI and data centers does not merit a word. Does Apple want to hamstring OpenAI's hardware efforts? Sure. Even if it doesn't think they'll amount to much, why wouldn't it? Does it want to simple dig through OpenAI's emails and see what turns up? That sounds like fun! But does it also feel that it has a solid case against OpenAI, a company that already has a serious reputation as a bad actor for any number of reasons and for whom stealing things is simply second nature? Yeah, probably.

The 4 biggest allegations in Apple's lawsuit against OpenAI

Apple on Friday filed a lawsuit against OpenAI, alleging that the artificial intelligence company engaged in the theft of trade secrets, intellectual property and actively coached departing Apple employees how to evade the company's security policies. The suit, filed in federal court in Northern California, calls for an injunction against OpenAI, as well as unspecified damages resulting from the theft of Apple's trade secrets. We've gone through the entire lawsuit; here are five of the biggest allegations Apple claims. Holding on to company property One of the plaintiffs named in the lawsuit is Chang Liu, who was a Senior System Electrical Engineer at Apple for eight years, and joined OpenAI in January 2026. The suit alleges that Liu realized he was able to still access Apple's confidential files after leaving, and then also instructed another colleague on how she could also pass along information. "Within hours of leaving Apple, Mr. Liu shared with Ms. Peng, "I still have another computer" he was planning to use to access Apple's confidential information so he could discuss it with Ms. Peng that evening. Within weeks of departing Apple, Mr. Liu also used Ms. Peng's Apple-issued work computer that was authenticated to Apple's network -- accessing it while she was still employed at Apple and he was not." Mr. Liu discovered that, surprisingly, he still could access the Apple's network repository after leaving Apple, the result of a then-unknown authentication vulnerability. Rather than bringing this to Apple's attention or protecting Apple's confidential information as required by his IPA, Mr. Liu celebrated his find with Ms. Peng and set about exploiting it: "LOL, I found out I can access the [network storage], so funny." Ms. Peng's response was immediate: "I'm ready." Show-and-tell Apple alleges that, as part of OpenAI's interview process, Tang Yew Tan, who was the Vice President of Product Design for iPhone and Apple Watch, and now OpenAI's Chief Hardware Officer, asked Apple employees to bring detailed CAD drawings, prototypes and other samples. "Mr. Tan has directed candidates to bring physical hardware components, "parts," and product samples from their Apple work to their OpenAI interviews for "show and tell" sessions that would disclose Apple's proprietary technologies. For example, messages left on an Apple-issued work device show that Mr. Tan instructed an Apple employee to "bring some parts [she] worked on" such as "Batteries," "SIP" (Systems-in-Package), "mlb" (multi-layer or main logic boards), and "shields" and that it may "be good to show" other interviewers these Apple components." Going after Apple's vendors The lawsuit also alleges that OpenAI went after Apple's suppliers to gain additional information about Apple's manufacturing processes and components. "OpenAI also has been targeting Apple's prized partner network and supply chain directly. It has been using misappropriated knowledge of Apple's confidential relationships, manufacturing and design processes, and proprietary terminology to extract from trusted third parties additional trade secret information and processes." Coaching departing Apple employees It's no secret that a number of Apple employees have left to go to OpenAI; the suit alleges that the company coached them how to announce their departures in such a way that they could continue to remove confidential information. "OpenAI has actively coached Apple employees on how to manage their exits from Apple in ways that avoid scrutiny. This helps OpenAI's new hires evade Apple's security procedures and reduce the chance that their confidentiality violations and trade secret theft would be detected." "OpenAI has counseled departing employees not to disclose their next employer and given advice on how to avoid the "dreaded walk out" that would promptly remove them from the company rather than giving them a standard two weeks in which they could continue to access Apple's confidential information and trade secrets." The takeaway Obviously, this is a huge lawsuit with massive implications. As recently as two years ago, the companies were in a partnership to use ChatGPT in Apple products, but as OpenAI has announced its ambitions to get into hardware, there's been increasing friction between the companies -- not helped by the fact that a number of Apple employees have gone to work at OpenAI. Most likely, this suit will take years to settle, but it could drastically shape the fortunes of both companies. Follow Tom's Guide on Google News and add us as a preferred source to get our up-to-date news, analysis, and reviews in your feeds. Subscribe to Tom's Guide on YouTube and follow us on TikTok. Finally, you can visit our dedicated Tom's Guide Savings Squad hub for expert help on getting the best products for less.

Litigation could pause OpenAI device plan

Why it matters: Launching its own device was the rationale for OpenAI's acquisition of io for about $6.5 billion last year. * Io was co-founded by Apple veterans including Tang Tan (OpenAI's now hardware chief who is named in the lawsuit) and Jony Ives (who is not named). Catch up quick: The lawsuit alleges that the AI company coordinated theft in its efforts to build a consumer hardware division. * Apple is seeking preliminary and permanent injunctions preventing OpenAI and io from possessing or using "Apple's trade secrets." What they're saying: "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," the lawsuit reads. * OpenAI, in response, said that "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." Between the lines: The lawsuit alleges specific cases of individuals who left Apple for OpenAI violating certain policies, but it is light on citations of evidence that OpenAI directed the espionage. * Apple believes, per the lawsuit, that the discovery process will unearth more. What we're watching: The New York Times reported last month that OpenAI was leaning towards an IPO next year, rather than this.

Apple vs OpenAI lawsuit: 8 bombshell accusations and how the legal war might change your next iPhone

Having spent decades covering Apple, I understand and respect its efforts to maintain a shroud of secrecy over its product development. Reading this line in the blockbuster Apple vs OpenAI lawsuit, I can hear the voices of countless Apple execs and PR people who, rightly or not, feel deeply wronged by what it considered a trusted partner: "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets." Late last week, Apple filed a lawsuit against OpenAI and, more specifically, a pair of key employees who, over the last two years, left Apple to join OpenAI's hardware business. The massive filing, which calls for a jury trial, accuses the pair of corporate espionage, essentially stealing a raft of trade secrets to help bolster OpenAI's still unrealized efforts to build AI hardware (it's currently working with Jony Ive to build what may eventually become a wearable device). I've spent some time poring over the documents and, to be honest, the accusations are stunning and, if true, seem unaccountably brazen for people who spent years with the Cupertino tech giant. From the inside out Tang Yew Tan, who currently serves as OpenAI's Chief Hardware Officer, was at Apple for a quarter of a century and, according to his own LinkedIn profile, "Oversaw the design and development of iPhone and Apple Watch Product Design, Interconnects Design, Acoustics and Materials technology centers." Chang Liu (whose LinkedIn handle is "changliu-apple") spent almost a decade as an iPhone Electrical Engineer. Apple's NDA's that they hand to journalists like me are almost legendary (the first time I signed one, I swear my hands were shaking). I can only imagine the intensity of the Intellectual property agreements (IPAs) Apple says it asks employees to sign from time to time. The language is probably appropriately terrifying; it's hard to conceive of how Liu and Tan could ignore them, and yet, according to the lawsuit, that's exactly what the pair did both during their waning days at Apple and in the time after when they joined OpenAI. OpenAI's only public response so far has been from its Director of Strategic Communications Drew Pusateri, who said on X, "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." The company's co-founder and CEO Sam Altman also only obliquely referenced it on X when someone accused him of being afraid of Apple. He wrote, "I am not afraid of Apple, but I have tremendous respect for them. s-tier company." ("S-Tier" basically means "elite"). I won't ask you to read the full document and instead have cherry-picked the most eye-watering accusations: A potentially sneaky exit When Liu left Apple, he allegedly took his work laptop with him. If you've ever worked in a corporate environment, you know this is a no-no. Most companies will pursue you to the ends of the earth to retrieve that hardware and whatever corporate access and secrets it contains. It gets worse Lui apparently didn't shelve the old (we assume) MacBook. Instead, he, according to Apple, exploited a network vulnerability and used the system to access Apple network folders. If true, that's an incredibly bold move. Surely Liu would've known how Apple's internal forensics could discover what was accessed by whom and when. Boasting While allegedly downloading Apple's proprietary files (details on unreleased products, presentations, tech data, specs, and more), Liu may have messaged someone through the Apple-issued laptop, celebrating how he was pulling the wool over Apple's eyes with "LOL" and "so funny". Again, was Liu the most careless corporate spy ever? Who would boast when they know Apple would eventually stumble on these details? Coaching recruits Apple claims Liu was actually recruiting Apple employees and coaching them on how to gather data before leaving the company. He may have told them how to email themselves files before exiting Apple. Now, I understand how some of your, say, personal data, can end up intertwined with corporate data and you may want to hold onto some of that. On the other hand, if you didn't keep a firm line between work and personal files, that's on you. A real betrayal Tang Yew Tan spent 25 years with Apple, and what he's being accused of has surely enraged and disappointed Apple. "Mr. Tan has been methodically using Apple's confidential information to benefit OpenAI," claims Apple. Like Lui and other Apple recruits, Tan may have emailed himself proprietary Apple info. Using Apple codenames Apple claims Tan is asking Apple recruits about upcoming projects using code names only Apple employees would know. We have their OK This one is kind of mind-blowing. Apple alleges that OpenAI has used Apple info to get a partner to apply a "specific trade-secret metal finishing technique," because they convinced the partner Apple was OK with them doing so. Carry out This last one might be the boldest move of all. Apple alleges that OpenAI instructed potential Apple recruits to bring everything from CAD files to actual prototypes or parts to OpenAI interviews. That's a particularly stunning accusation, and again, just seems so reckless. What kind of corporate spies operate with this level of impunity? Naturally, OpenAI will, at some point, respond properly to this lawsuit, perhaps with one of their own. Apple could also eventually settle this suit out of court. They've done so before with similar cases, though I don't think they were quite at this level. Can they come back from this? Whatever happens with this case, it's hard to imagine the Apple / OpenAI relationship, which is already somewhat fraught, survives. For now, you can explicitly choose to use ChatGPT to handle requests in the new Siri in iOS 27 dev beta, and it's a key part of Image Playground and Visual Intelligence. Apple could pull those options and lean harder into its Google Gemini foundation Model partnership while this case works its way through the courts. I don't think that will materially impact your iPhone experience, but the loss of direct access to those hundreds of millions of iPhone customers could hurt OpenAI, a company that, as Apple acknowledges, is trying to build its own hardware business. Plus, if OpenAI loses, it could see a lot of the in-house hardware innovation potentially tied to Apple's work blocked from ever reaching consumer hands. And, obviously, it'll be hard for the partnership to come back from this passage in the suit: "Apple lacks visibility into what's been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership. This much is clear, however: 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." Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.

Apple v. OpenAI lawsuit: 8 key allegations explained

Apple and OpenAI are heading to court. On Friday, July 10, Apple sued OpenAI, the artificial intelligence company led by CEO Sam Altman, and two former Apple employees, accusing the ChatGPT maker of obtaining confidential Apple information to help build its own consumer hardware. The lawsuit names OpenAI's commercial and nonprofit entities, its hardware company io Products, OpenAI Chief Hardware Officer Tang Yew Tan, and former Apple engineer Chang Liu. It was filed in the U.S. District Court for the Northern District of California. "This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," Apple said in the complaint. The filing contains claims involving secret project names, confidential presentations, Apple-issued laptops, physical hardware components, supplier relationships, and even instructions for getting through an Apple exit interview. It also arrives as OpenAI prepares to release its first consumer device with former Apple design chief Jony Ive. There is a lot going on. Here are the 8 most important things to understand about the lawsuit, what Apple is actually alleging, and what could happen next. 1. Apple is accusing OpenAI of more than simply hiring its employees The first important distinction is that it is generally legal for one company to recruit employees from a competitor. A former Apple engineer is allowed to accept a job at OpenAI. That engineer is also allowed to use general knowledge, professional experience, and skills developed over the course of a career. Apple does not own everything a person learned while working there. A trade secret is different -- it is valuable information that is not publicly known and that a company has taken reasonable steps to protect. That could include an unreleased product design, a private manufacturing process, a confidential list of suppliers, or technical specifications for a component that has not yet reached the market. Apple alleges that OpenAI did not merely hire people with experience. It says OpenAI used those employees and its recruiting process to obtain protected documents, designs, physical parts, manufacturing knowledge, and information about unreleased products. In plain language, Apple's argument is essentially this: OpenAI was free to hire Apple engineers, but it was not free to ask them to bring Apple's files and hardware along with them. That remains Apple's version of events. A complaint lays out what the plaintiff says happened; it is not a court ruling that those allegations are true. OpenAI's Director of Strategic Communications Drew Pusateri has denied wanting or using Apple's confidential information with a statement on X: 2. The lawsuit is really about OpenAI becoming a hardware competitor Apple and OpenAI were publicly working together only two years ago. In 2024, Apple announced that ChatGPT would be integrated into Siri, Apple's systemwide Writing Tools, and other Apple Intelligence features. The arrangement allowed users to send certain questions to ChatGPT directly from an iPhone, iPad, or Mac. The relationship became more complicated when OpenAI moved beyond software and began developing its own consumer device. In 2025, OpenAI acquired io Products, the hardware startup created by Ive, Tan, and several other former Apple employees, in a deal valued at roughly $6.5 billion. Ive, who helped design products including the iPhone, iMac, and Apple Watch during his time at Apple, is working with OpenAI on the device but is not personally named as a defendant in Apple's lawsuit. OpenAI has offered few concrete details about what it is making. The company has described the project as a new kind of AI device that would move beyond the familiar structure of screens, apps, keyboards, and smartphones. Its first hardware product is expected as soon as the end of 2026. That context matters because Apple is not suing over information used to improve ChatGPT; rather, it alleges that its secrets were taken to help build physical products that could compete with Apple's hardware business. Apple says the information at issue covers product architecture, battery systems, circuit boards, component selection, manufacturing equipment, metal-finishing methods, supply-chain relationships, and unreleased product plans. 3. Apple says OpenAI turned job interviews into information-gathering sessions Some of the lawsuit's most striking allegations involve how OpenAI interviewed Apple employees. Tan spent more than 24 years at Apple and most recently served as vice president of product design for the iPhone and Apple Watch. He later helped found io and is now OpenAI's chief hardware officer. Because he had worked on confidential Apple programs, Apple says he knew the company's internal terminology, project names, suppliers, and development process. According to the lawsuit, Tan used that knowledge while interviewing current Apple employees for jobs at OpenAI. Apple alleges that he referred to at least one unreleased Apple project by its internal codename before asking a candidate about the company's plans for it. To someone outside Apple, the name would have meant very little. To an employee working on the project, it would have signaled exactly what Tan wanted to discuss. Candidates were also allegedly required to prepare "Technical Deep Dive" presentations about their work. Apple says the instructions asked for details including how components were selected, which vendors were used, what software supported system integration, and how engineers communicated with suppliers. Those questions may sound like ordinary technical interview questions. Apple's argument is that, when directed at current employees working on secret projects, they were asking candidates to disclose information that belonged to Apple. The filing also alleges that Tan told candidates to bring "actual parts" from Apple to their interviews for "show and tell" sessions. Those parts allegedly included batteries, logic boards, systems-in-package, shields, and other physical components. One candidate appeared surprised by the request, according to messages quoted in the filing, and said they "didn't even know we could take those from the office." Apple says the interview process also generated evidence that now appears in the lawsuit. In one example, an employee allegedly began screenshotting and downloading files related to a highly confidential Apple project in the hours before an OpenAI interview. During the interview, Tan allegedly asked about that same project. Apple says it found the activity by reviewing access records and server logs connected to its own systems. In other words, the candidate allegedly used an Apple computer to retrieve the files, leaving a record inside the systems from which the information was being taken. 4. Apple says one former engineer kept a laptop and continued accessing its files The lawsuit's other central figure is Liu, who spent more than eight years at Apple as a senior system electrical engineer working on the iPhone before joining OpenAI in January 2026. Apple alleges that Liu failed to return an Apple-issued laptop when he left the company. It also says he later discovered an authentication vulnerability that continued to give him access to Apple's cloud-based file storage after his employment had ended. According to the complaint, Liu did not report the apparent security problem. Apple says he instead used it to continue accessing confidential engineering materials while already employed by OpenAI. The lawsuit alleges that Liu downloaded dozens of files containing technical specifications, engineering presentations, circuit-board information, and details about unannounced products. One compilation allegedly contained more than 1,000 pages of technical materials. Apple also points to messages Liu allegedly sent after discovering that his access still worked. In one, he reportedly wrote to an Apple employee: "LOL, I found out I can access the [server], so funny." That detail is important because it could help Apple argue that the access was not accidental. Accidentally discovering that an old login still functions is one thing. Continuing to use it to download files after acknowledging the unexpected access is another. Apple also alleges that Liu helped another Apple employee prepare for an OpenAI interview. He allegedly directed her toward specific confidential folders, advised her about what information to review, and discussed how files could be copied without attracting the attention of Apple's security team. The complaint says Liu eventually encouraged the employee to stop communicating through Apple devices and move their conversation to LINE, a separate messaging app. The employee later joined OpenAI. Liu has not publicly responded to the allegations. 5. Apple says recruits were coached on how to avoid its exit-security procedures When an employee leaves a company like Apple, the departure involves more than returning a badge and laptop. The company may disable system access, examine recent downloads, recover devices, remind the employee of confidentiality agreements, and ask questions about where the person is going next. These procedures are designed to make sure confidential materials do not leave with the employee. Apple alleges that OpenAI knew how those procedures worked and coached recruits on how to navigate or avoid them. According to the filing, Tan circulated an internal Apple document marked "Need to Know" that explained Apple's security process for departing employees. Apple says the document was intended only for certain Apple managers but was shared with recruits before they had even told Apple they were leaving. That would mean the recruits allegedly knew in advance what Apple's security team might inspect, what questions might be asked, and when their access could be cut off. Apple also claims OpenAI advised departing employees not to disclose that they had accepted jobs with the company. Recruits were allegedly told not to sign documents during Apple exit interviews and to contact OpenAI immediately if Apple asked them to sign anything. The lawsuit says Apple found a pattern among employees leaving for OpenAI: some skipped exit interviews, ignored messages from Apple's security team, provided little or no notice, or otherwise avoided the usual departure process. Apple is using those examples to argue that the alleged conduct was coordinated rather than the work of one person independently deciding to take files. OpenAI now employs more than 400 former Apple employees, according to the complaint. That number is not evidence of wrongdoing by itself. The significant question is whether any of those workers brought protected Apple information with them and whether OpenAI knowingly requested, received, or used it. 6. Apple says OpenAI also went through its suppliers Apple's allegations extend beyond employees and interviews. Modern hardware companies rely on complicated networks of suppliers that make batteries, chips, displays, enclosures, circuit boards, and manufacturing equipment. Apple also develops specialized processes with some of those partners that are not available to competitors. The lawsuit alleges that OpenAI used information from former Apple employees to approach companies within that supply chain. In one example, Apple says OpenAI asked a trusted manufacturing partner to demonstrate a proprietary metal-finishing technique. The technique allegedly involved a multi-step process developed by Apple to produce a particular appearance and physical finish on its devices. Apple says the supplier was contractually prohibited from performing that work for other companies. OpenAI allegedly led the partner to believe that Apple had authorized the demonstration. According to Apple, it had not. The complaint also says OpenAI approached a longtime Apple supplier involved in battery and power manufacturing. Former Apple employees allegedly used internal terminology to ask targeted questions about specific components and processes. This part of the lawsuit could be particularly important because it moves the allegations beyond files sitting on an employee's computer. Apple is claiming that confidential information was put to practical use while OpenAI was developing hardware. OpenAI has not announced the design or component list for its device, so it is not publicly possible to determine whether any Apple technology appears in it. That is one reason Apple says it needs the lawsuit's discovery process. 7. Apple wants access to the evidence behind OpenAI's device Apple says it contacted OpenAI in February and asked the company to investigate its concerns. According to the lawsuit, OpenAI did not respond. Apple filed its complaint roughly five months later. Apple is asking for damages, but money is only part of what it wants. The company is also seeking an injunction, which is a court order requiring someone to do or stop doing something. Apple wants OpenAI barred from possessing, using, or disclosing its alleged trade secrets. It also wants confidential materials returned and evidence connected to the case preserved. "Preserved" means the defendants could be required to retain relevant emails, messages, files, designs, access logs, and internal documents rather than deleting or changing them while the lawsuit moves forward. Apple also expects to use discovery. Discovery is the part of a lawsuit in which each side can demand relevant evidence from the other. Depending on what a judge allows, Apple could seek internal OpenAI communications, recruiting records, design documents, supplier correspondence, and information showing how the company developed its device. That does not automatically mean OpenAI will have to prove every component was developed independently before its product can launch. Apple would have to persuade the court that its evidence supports such restrictions, and OpenAI will have opportunities to challenge the allegations and the scope of Apple's requests. Still, the timing is significant. OpenAI is moving toward its first hardware release, and Apple is asking a court to determine whether any part of that hardware operation depends on confidential Apple information. Apple describes the conduct in sweeping terms, alleging that OpenAI's hardware business is "rotten to its core" because of its supposed reliance on misappropriated trade secrets. OpenAI has denied that it wants another company's secrets, and none of Apple's claims has yet been proven in court. Online, the immediate reaction treated the lawsuit like a particularly messy Silicon Valley breakup. Others focused on the employees at the center of Apple's allegations, questioning how someone could spend decades helping build the company's most important products and then (allegedly) carry confidential information into a rival operation. 8. OpenAI is already fighting lawsuits on several fronts Apple's complaint arrives while OpenAI is dealing with legal challenges involving trade secrets, copyright, its corporate structure, and the safety of ChatGPT. The closest comparison is a lawsuit Elon Musk's xAI filed against OpenAI in September 2025, accusing the company of stealing confidential information after recruiting employees from the rival AI company. The case also focused partly on information disclosed during the hiring process. A federal judge dismissed the original complaint on in February, but allowed xAI to revise its claims. The judge eventually dismissed the lawsuit with prejudice on June 15, finding that xAI had not shown OpenAI encouraged a former engineer to reveal trade secrets or that OpenAI employees knew he might have done so. Musk separately sued OpenAI, CEO Sam Altman, and President Greg Brockman over claims that they had abandoned the organization's original nonprofit mission. A federal jury ruled against Musk in May after finding that he waited too long to file the case. The verdict turned on the statute of limitations and did not decide whether OpenAI had actually violated its founding commitments. Musk says he plans to appeal. OpenAI is also facing a growing group of cases focused on the safety of ChatGPT. Florida sued OpenAI and Altman on June 1, accusing the company of aggressively marketing ChatGPT to children while concealing serious risks and disregarding safety warnings. The state alleges that the chatbot facilitated harmful behavior, including self-harm and violence, and collected information from minors without meaningful parental consent. OpenAI has disputed the copyright allegations and has said it continues to strengthen safeguards involving minors, self-harm, and threats of violence. The government of British Columbia also announced July 7 that it had retained lawyers in Canada and California to explore legal action against OpenAI following the February mass shooting at Tumbler Ridge Secondary School (the province has not yet filed its own lawsuit). It says internal OpenAI reports showed that the company's safety teams flagged violent prompts connected to the shooter months before the attack but did not notify law enforcement. Families affected by the shooting have already filed separate cases against OpenAI in California. Meanwhile, The New York Times, the New York Daily News, authors, and other publishers are pursuing copyright cases that accuse OpenAI of improperly using protected material to train its AI models. It's clear OpenAI is actively trying to build the future. But, increasingly, it is also being asked to defend how it built it.

Apple Sues OpenAI, Alleging Former Employees Stole Confidential Hardware Trade Secrets

Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company and two former Apple employees of misappropriating confidential hardware information to accelerate OpenAI's consumer hardware ambitions. The lawsuit, filed in the U.S. District Court for the Northern District of California, names OpenAI, io Products, former Apple executive Tang Tan, and former Apple engineer Chang Liu as defendants. Apple alleges the group engaged in "a pattern of theft" involving confidential information related to unreleased products, engineering processes, manufacturing techniques, and proprietary hardware development. Apple Alleges a Coordinated Pattern of Trade Secret Theft As reported by The Verge, according to the complaint, Apple first raised concerns with OpenAI in February and asked the company to investigate the alleged misconduct. Apple claims it never received a response. The lawsuit alleges that former Apple employees downloaded confidential engineering documents, manufacturing specifications, and proprietary project files before or shortly after leaving the company. Apple also claims some employees attempted to bypass internal security procedures designed to protect sensitive information. "This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," the complaint states. Apple further alleges that the behavior represents "the tip of the iceberg," claiming it has identified a broader pattern involving former employees who later joined OpenAI. Former Apple Employees Named in the Suit Among the named defendants is Tang Tan, Apple's former Vice President of Product Design who helped oversee iPhone and Apple Watch hardware before leaving the company in 2024 to join Jony Ive's hardware startup, io Products. OpenAI acquired io Products in a reported $6.5 billion deal in 2025, bringing Tan and more than 50 engineers into the company. The lawsuit also names Chang Liu, a former senior systems electrical engineer who worked at Apple for eight years before joining OpenAI earlier this year. Apple alleges Liu continued accessing Apple systems after his departure by exploiting a security vulnerability, downloading confidential hardware files that included engineering presentations, manufacturing documentation, technical specifications, and proprietary project data. The company also claims Liu instructed another Apple employee on how to copy confidential files and avoid detection before leaving for OpenAI. Allegations Extend Beyond Downloaded Files Apple's complaint alleges OpenAI recruiters, including Tan, encouraged Apple employees interviewing for positions to bring confidential hardware components, prototypes, CAD files, and other proprietary materials to interviews. According to the filing, Tan allegedly questioned candidates using internal Apple project codenames and requested "actual parts" for "show and tell" sessions to obtain additional information about unreleased products. Apple also claims OpenAI used confidential supplier information to approach longtime Apple manufacturing partners and requested work involving proprietary production techniques without Apple's authorization. The lawsuit notes that more than 400 former Apple employees now work at OpenAI, although only Tan and Liu are individually named as defendants. OpenAI Denies the Allegations As reported by 9To5Mac, earlier today OpenAI denied Apple's claims. In a statement shared to X by Director of Strategic Communications Drew Pusateri, the company said: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." Apple, meanwhile, said protecting its intellectual property remains a priority. "At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously," an Apple spokesperson said in a statement. Legal Dispute Comes as OpenAI Expands Into Hardware The lawsuit arrives as OpenAI continues developing its first generation of consumer hardware products following its acquisition of io Products, the startup founded by former Apple Chief Design Officer Jony Ive. Apple is seeking damages as well as injunctive relief to prevent any continued use of its alleged trade secrets. The company argues the confidential information forms the foundation of OpenAI's emerging hardware business. The case also follows earlier legal disputes surrounding OpenAI's hardware efforts, including separate trade secret allegations brought by hardware startup iyO earlier this year. As OpenAI moves closer to entering the consumer hardware market, the lawsuit highlights the increasing competition surrounding the development of next-generation AI devices and the value of the proprietary technology behind them. For now, the allegations remain unproven, and the case will now move through the legal process as both companies defend their positions. Image creditsHeader photo licensed via Depositphotos.

Apple sues OpenAI, alleging artificial intelligence company stole trade secrets

Suit claims OpenAI poached Apple workers, coaxing them to share confidential material in bid to create hardware Apple filed a lawsuit against OpenAI on Friday alleging the artificial intelligence firm stole company trade secrets in a move to create its own hardware device. The suit claims OpenAI poached Apple employees, coaxing them to hand over confidential material, product designs and other tightly held information. "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 in an email. OpenAI did not immediately return a request for comment. The lawsuit is a sharp turnaround for the two tech giants, which announced a major partnership in 2024. That deal involved Apple integrating OpenAI's chatbot, ChatGPT, into the operating systems for iPhones, iPads and Macs. But when Apple showcased its revamped voice assistant Siri last month, its AI component was based on Google's Gemini AI model, rather than ChatGPT. Tensions between the two companies began to simmer last year when OpenAI spent $6.4bn to acquire a hardware startup founded by former Apple design guru Jony Ive, indicating that the AI titan was foraying into hardware. Ive's startup, io Products, is also named in Apple's lawsuit. "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 wrote in its complaint. The suit alleges several former Apple employees joined OpenAI, taking company trade secrets with them. Tang Yew Tan, OpenAI's chief hardware officer and a former vice-president at Apple, is named in the suit. Apple alleges that Tan took information about Apple suppliers with him to OpenAI and encouraged interviewees at OpenAI to divulge confidential company information. "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," reads Apple's complaint. Chang Liu, another former Apple employee named in the suit who was hired at OpenAI, is accused of taking an Apple laptop with him when he left. Apple alleges that Liu used an authentication bug to breach the company's internal network and downloaded "dozens of Apple's confidential hardware-related files". The Apple spokesperson said: "Our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously." The company is seeking damages and a court order that would block OpenAI from possessing or using its trade secrets.

Apple accuses OpenAI, and former design star Jony Ive's io Products firm, of stealing hardware trade secrets in blockbuster lawsuit | Fortune

Apple sued OpenAI on Friday for allegedly stealing its trade secrets, an extraordinary move that pits the $4.6 trillion iPhone maker against the fast-growing AI startup as it prepares to release a new class of hardware products that have been shaped in large part by Apple's former design boss. In the lawsuit, filed in the Northern District of California court, Apple accused two former Apple employees now working at OpenAI of systematically stealing confidential data including information about unreleased hardware products, technical specifications, and details about vendors and contractors in Apple's supply chain. The complaint also listed OpenAI as a defendant, as well as io Products, a hardware design firm acquired by OpenAI last year that was cofounded by Apple's former design boss Jony Ive. "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. "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets." OpenAI told Fortune in a statement that "we have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." The lawsuit marks a dramatic escalation between two companies that were once working together to bring OpenAI's ChatGPT into Apple's software platforms and Apple's Siri digital assistant. The partnership between Apple and OpenAI faded over time, and in January Apple announced that it was turning to Google for its Apple Intelligence efforts. An Apple spokeswoman added in a statement that the company's teams "are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously." OpenAI told Fortune in a statement that "we have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." Apple accuses Tang Tan, OpenAI's chief hardware officer and a former vice president at Apple, of systematically stealing secrets, including using confidential Apple codenames during OpenAI's recruiting process, encouraging interviewers to share secrets from the iPhone maker, and directing them to physically bring Apple hardware parts into interviews. Tan left Apple to join io Products in 2024 after roughly 24 years at the company, where he had risen from product designer to vice president over iPhone and Apple Watch product design. Chang Liu, a member of OpenAI's technical staff, is accused of downloading dozens of confidential hardware files, including technical specifications, engineering presentations, and proprietary data for unreleased products. He is also accused of instructing an Apple employee on how to bypass security teams when copying files. OpenAI is accused of misappropriating knowledge of Apple's supplier relationships and proprietary terminology to approach Apple's supply chain partners. Apple's allegations are all the more striking given the company's reputation for fiercely safeguarding the secrecy of its products. OpenAI has been developing hardware devices to run ChatGPT on, part of a strategy to control its own physical products rather than rely on giants like Apple. OpenAI has recruited from Apple, including hiring some of its top product leaders, and in May 2025 it announced that it was buying Ive's io Products for $6.4 billion. OpenAI CEO Sam Altman has made no secret that he envisions a new class of AI gadget that replace smartphones as the primary consumer tech device, and Ive's move to OpenAI turned heads at the time. Ive is not named in the lawsuit. The lawsuit comes at a period of transition for both companies, with Apple CEO Tim Cook due to hand the reins to John Ternus in September, and OpenAI preparing for an initial public offering as it faces increasing competition from other AI model makers like Anthropic and Google. Apple is seeking a combination of injunctive relief, monetary damages, and declaratory judgments to stop the alleged theft. This isn't the first time OpenAI has faced such accusations. In 2023, the New York Times sued OpenAI and Microsoft, alleging that the companies used its articles and other content to train their AI models without permission. In June, a California judge dismissed a lawsuit from xAI, the company run by Elon Musk, alleging that OpenAI recruited a former xAI engineer to share information about the Grok chatbot.

Apple is suing OpenAI of stealing trade secrets in blockbuster lawsuit

The lawsuit claims OpenAI recruited Apple employees and obtained confidential information about unreleased products. For the past two years, Apple and OpenAI have been presented as close AI partners. ChatGPT powers key Apple Intelligence features, Siri can hand complex queries over to OpenAI, and together the two companies helped bring generative AI to millions of Apple devices. Now, that partnership has taken a dramatic turn. What is Apple accusing OpenAI of? Apple has filed a lawsuit against OpenAI, accusing the AI company of orchestrating a coordinated effort to steal confidential trade secrets and unreleased product information through former Apple employees as it builds its own hardware business. In the lawsuit, Apple alleges that OpenAI encouraged employees to share confidential documents, engineering drawings, product components, technical specifications, and other proprietary material related to unreleased devices. Recommended Videos The company goes even further, arguing that "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." The lawsuit specifically names Tang Tan, OpenAI's Chief Hardware Officer and Apple's former Vice President of Product Design, who previously oversaw the development of the iPhone, Apple Watch, AirPods, and several other hardware products. Apple also names former iPhone hardware engineer Chang Liu, alleging he downloaded confidential files, including information on unreleased products, engineering presentations, technical specifications, and proprietary project data, before leaving the company to join OpenAI. Apple is seeking more than financial damages. The company wants OpenAI to stop using any allegedly misappropriated information, destroy confidential materials, and redesign future hardware products if they incorporate Apple's proprietary technology. According to Bloomberg, Apple also claims it attempted to resolve the dispute privately before filing the lawsuit but received no response. Why is this lawsuit such a big deal? Beyond the allegations themselves, the lawsuit marks a remarkable shift in the relationship between Apple and OpenAI. Apple's struggles in artificial intelligence have been well documented over the past few years, and it was through its partnership with OpenAI that the company finally rolled out Apple Intelligence, integrating ChatGPT into Siri and other AI-powered experiences to better compete with rivals like Google's Gemini and Microsoft Copilot. Even today, ChatGPT remains the only frontier AI model integrated across Apple's AI ecosystem, spanning the iPhone, iPad, Mac, and Apple Watch. As far as OpenAI's hardware ambitions go, the company recently struck a deal with legendary Apple designer Jony Ive, whose work helped define iconic products like the iPhone, iPod, and MacBook. Through its acquisition of io Products, OpenAI is widely believed to be developing AI-first consumer hardware, with rumors pointing to wearable devices that deeply integrate ChatGPT -- somewhat similar in concept to the ill-fated Humane AI Pin, albeit with a much stronger AI backbone. While OpenAI has remained tight-lipped about its launch timeline, reports suggest the company's first device could arrive as early as next year. That makes the timing particularly striking. While Apple accuses OpenAI of building its hardware ambitions using confidential information, the two companies continue to work together on consumer-facing AI features. Add OpenAI's acquisition of Jony Ive's startup, the appointment of former Apple hardware chief Tang Tan to lead its hardware efforts, and this lawsuit is the latest chapter in the race to build the next generation of AI devices.

Apple Sues OpenAI, Claims Former Employees Stole Trade Secrets

The lawsuit follows OpenAI's $6.5 billion acquisition of Jony Ive's hardware startup io Products. Apple has sued OpenAI and two former employees, accusing the ChatGPT maker of using stolen trade secrets for its consumer hardware efforts. The complaint, filed Friday in the U.S. District Court for the Northern District of California, names former Apple senior system electrical engineer Chang Liu and former iPhone and Apple Watch design executive Tang Yew Tan, along with OpenAI Foundation, OpenAI Group PBC, and io Products. Apple alleges Liu, who left the company in January after eight years, failed to return a company laptop and later accessed Apple's internal systems through an authentication bug. "While employed by OpenAI, Mr. Liu also exploited a rare, previously unknown authentication bug to access Apple's shared network folders," Apple's attorneys said in the complaint. "Upon discovering that he had this unauthorized access to Apple's systems, Mr. Liu did not report it, return his stolen Apple-issued work laptop, or delete the program that allowed the access." Apple alleges Liu downloaded dozens of confidential hardware files, including information about unreleased products, engineering presentations, technical specifications, and proprietary project data. The company also alleges Tan, who spent 24 years at Apple before becoming OpenAI's chief hardware officer, used confidential information from his time at Apple to benefit OpenAI. The complaint claims Tan used Apple's internal project names during OpenAI interviews and asked about unreleased products. Apple also alleges candidates were told to bring "actual parts," for "show and tell." Apple further claims OpenAI's recruiting process requested "CAD/design artifacts," prototypes, supplier information, and details about employees' work on Apple hardware. Apple and OpenAI did not immediately respond to a request for comment by Decrypt. The lawsuit follows OpenAI's $6.4 billion acquisition of io Products, the hardware startup founded by former Apple designer Jony Ive. Ive is not named in the complaint. According to the filing, OpenAI's hardware division has hired more than 400 former Apple employees. Apple claims it contacted OpenAI in February with concerns about confidential information entering the company but did not receive a response. The news comes after a separate trade secret dispute between OpenAI and Elon Musk's xAI. In September, xAI sued OpenAI, alleging the ChatGPT maker recruited former employees to obtain confidential source code, training methods, and data center strategies. OpenAI denied the allegations, and a federal judge dismissed the lawsuit in June, finding xAI failed to show OpenAI encouraged a former employee to disclose confidential information. The lawsuit is a stark pivot from Apple and OpenAI's earlier relationship. In 2024, Apple tapped OpenAI to bring ChatGPT to Siri as part of its Apple Intelligence initiative. However, earlier this year, Apple turned to Google's Gemini to power its next generation of AI models after delays stalled the rollout.

OpenAI: No Evidence Apple's Trade Secret Complaint Has Merit

OpenAI says it is "not aware" of any evidence that Apple's allegations of trade secret theft have merit in a statement provided to Bloomberg. While we take these allegations seriously, we're not aware of any evidence that this complaint has merit. We believe in fair competition and allowing people the freedom to work wherever they choose, and we're focused on building innovative technology that empowers people everywhere. Apple filed a lawsuit against OpenAI on Friday, accusing the company of intellectual property theft. Apple said OpenAI employees Tang Tan and Chang Liu schemed to steal confidential Apple information to further hardware development at OpenAI. Tan is OpenAI's Chief Hardware Officer and a 24-year Apple veteran who led product design, while Liu is on the hardware team at OpenAI after working as a senior system electrical engineer at Apple. Tan and Liu allegedly asked Apple employees interviewing at OpenAI to come prepared with details on unreleased devices, components, manufacturing processes, and vendor relationships. Liu is also accused of keeping an Apple-issued laptop and exploiting an authentication bug to view confidential documents while working at OpenAI. From the lawsuit: This is the tip of the iceberg. Apple lacks visibility into what's been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership. This much is clear, however: 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. As a natural result, OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets. When Apple first filed the suit, OpenAI gave a dismissive response. "We have no interest in other companies' trade secrets," said OpenAI spokesperson Drew Pusateri. "We remain focused on building innovative technology that empowers people everywhere." OpenAI's new statement about employee mobility hints at how it will frame the case publicly. In the lawsuit, Apple said more than 400 Apple employees have migrated to OpenAI, so OpenAI can point to its hiring of former Apple employees as motivation for Apple's lawsuit. Apple is aiming for a jury trial, and is hoping to uncover more evidence through discovery. Apple has requested an injunction requiring OpenAI to cease using any Apple information during the development of OpenAI's AI hardware device. Apple is also seeking damages and suing Tan and Liu for breach of contract for violating their employment agreements.

Apple sues OpenAI exec for theft of trade secrets

The suit targets OpenAI's chief hardware officer Tang Tan and seeks jury trial, cessation of alleged practices, and product redesigns from OpenAI. As first reported by Bloomberg, Apple has filed suit against OpenAI, accusing the AI developer of running a coordinated campaign to steal information about upcoming Apple products. OpenAI is Apple's partner in some ways. Since iOS 18 was released two years ago, Apple has incorporated ChatGPT features into Apple Intelligence, allowing users to optionally ask ChatGPT for more detailed information than Apple's own AI can provide, or to write longer-form text. But in recent years, OpenAI has set its sights on more than just providing AI services to consumers and businesses. The company is reportedly working on more than one hardware device, and while the rumors vary about the form it will take (a pin? a pendant? a pen? a little desk accessory?), it will almost certainly compete with one or more of the AI-powered accessories Apple is said to be working on. OpenAI has also enlisted the help of Jony Ive, the celebrated Apple designer who left the company seven years ago, to help it design products. OpenAI has poached numerous Apple employees -- according to the lawsuit, over 400 former Apple employees now work at OpenAI. Apple's lawsuit claims OpenAI "encouraged Apple employees to share information, components, drawings, and other materials related to upcoming products." The lawsuit also names Tang Tan, OpenAI's chief hardware officer, who previously was VP of product design at Apple, charging Tan " exploited a rare, previously unknown authentication bug to access Apple's shared network folders" and "surreptitiously accessed and downloaded dozens of Apple's confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data." Apple is seeking a jury trial and demands that OpenAI cease its practices, destroy any proprietary materials, and redesign its products so they don't use any of Apple's technology. According to Apple's suit, it attempted to resolve this matter months ago out of court and only filed the suit when it received no response. You can read the entire lawsuit, which also requests "Damages sufficient to compensate for the actual loss caused by Defendants' trade secret misappropriation and breach of contract," here.

What to know about Apple's trade secrets lawsuit against OpenAI

A spokesperson for OpenAI said in a statement: "We have no interest in other companies' trade secrets." Tech giant Apple filed a lawsuit against OpenAI on Friday, accusing the artificial intelligence firm and two former Apple employees of stealing trade secrets. The suit alleges OpenAI and the employees aggressively worked to poach Apple staff and to obtain confidential information on Apple hardware. In response to the allegations, a spokesperson for OpenAI said in a statement that the company has "no interest in other companies' trade secrets." "We remain focused on building innovative technology that empowers people everywhere," the spokesperson added. Security bug and Apple 'show and tell' sessions Apple said it had found a "pattern of theft" of its trade secrets by former employees who had moved to OpenAI, starting with a former engineer named as Chang Liu. According to the complaint, Liu, who worked as a senior system electrical engineer at Apple, left the firm in January 2026 to join OpenAI and failed to return a company laptop or schedule an exit interview. It said Liu later discovered an "authentication bug" that allowed him to access Apple's internal systems. He went on to "surreptitiously" download dozens of confidential files relating to Apple hardware, including information on unreleased products, technical specifications, and engineering presentations, it added. Liu was also accused of having "coached" a former Apple colleague as he attempted to recruit her to OpenAI, advising her how to avoid getting flagged by Apple's security team while copying files and suggesting which confidential material she should study in preparation for an interview. The suit also accuses OpenAI's chief hardware officer Tang Yew Tan of "methodically using Apple's confidential information to benefit OpenAI". Tan, it said, had been entrusted with some of Apple's "most sensitive projects" in his 24 years at the company, where he was the vice president of product design for the iPhone and Apple Watch. In the months leading up to his departure from Apple, the complaint said Tan had started to email himself information relating to Apple's suppliers as well as "internal summaries of the consumer electronics industry". After making the switch to OpenAI, the lawsuit also accused Tan of using interviews to attempt to extract information on Apple products out of candidates, requesting that interviewees bring "actual" Apple parts for "show and tell" sessions. 'Tip of the iceberg' Apple described its findings as the "tip of the iceberg," as it "lacks visibility into what has been happening behind closed doors at OpenAI, where such misconduct is normalised and exemplified by leadership". It added that OpenAI's "nascent hardware business" was now "on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets". Codex Micro In June, OpenAI teased the release of a new hardware product, the Codex Micro, a small programmable keyboard known as a macro pad. Codex is the company's AI-powered coding agent. A teaser trailer for the product appears to show a small, branded desk gadget. The caption reads: "Your favorite Codex shortcuts are getting an upgrade. July 15th."

Apple sues OpenAI for stealing trade secrets

San Francisco (United States) (AFP) - Apple on Friday sued OpenAI, accusing the artificial intelligence company of orchestrating a campaign to steal the iPhone maker's trade secrets as it tries to develop its own consumer hardware device. The lawsuit -- filed in a federal court in San Jose, California -- paints a picture of an aggressive effort by OpenAI to poach Apple employees and extract confidential information to build its own device. The lawsuit marks a dramatic escalation in tensions between two companies that partnered in 2024 to integrate ChatGPT into Apple's products. That relationship has since deteriorated. Bloomberg reported in May that OpenAI was itself considering legal action against Apple, alleging the tech giant had failed to adequately promote the ChatGPT integration. "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. The suit will significantly complicate OpenAI's plans for a hotly anticipated initial public offering. The company, valued at roughly $852 billion, has raised more than $180 billion from investors, and expanding into consumer hardware was seen as a major opportunity for growth. "Significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes and products," the company said in a statement to AFP. "We will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so." OpenAI did not immediately respond to a request for comment. The suit names OpenAI, its hardware subsidiary io Products -- the company co-founded by former Apple design chief Jony Ive -- and two former Apple employees: Tang Yew Tan, now OpenAI's chief hardware officer, and engineer Chang Liu. Apple said it was seeking damages and an injunction barring OpenAI from using its confidential information, calling the lawsuit necessary after OpenAI failed to respond to concerns the company raised in February. 'Show and tell' Tan spent 24 years at Apple, most recently as vice president of product design for the iPhone and Apple Watch, before co-founding io Products, which OpenAI acquired for roughly $6.5 billion in 2025. Apple alleged that Tan used confidential project code names during OpenAI job interviews to probe candidates about unreleased Apple products. According to the complaint, about 400 employees at OpenAI are former Apple staffers. Tan also allegedly told Apple employees to bring physical components, such as batteries, circuit boards, and other parts, to interviews for "show and tell" sessions. Apple described its findings as "the tip of the iceberg," saying it had limited visibility into what was happening behind OpenAI's closed doors. "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," the complaint said.

Apple sues OpenAI, accusing ChatGPT maker of stealing trade secrets

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting. Apple on Friday sued ChatGPT maker OpenAI and two of the firm's executives, alleging that it stole Apple's trade secrets to gain an edge in the AI arms race. The civil suit, filed in the Northern District of California, Apple accuses OpenAI Chief Hardware Officer Tang Tan and Chang Liu, a technical staffer at the company, of stealing proprietary information from Apple, their former employer, to help OpenAI develop its own hardware. Apple also accused OpenAI of engaging in a "coordinated pattern of misconduct at an institutional level." "This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," the complaint states. "Apple brings this suit to put a stop to it." While employed at Apple, Tan helped design the iPhone, Apple Watch and iPod, according to the lawsuit. The suit also alleges that Liu, a former Apple electrical engineer, was privy to some of the technology giant's most sensitive product development information. Neither Apple nor OpenAI immediately responded to a request for comment. OpenAI has not revealed what types of products it is developing to run its software, but has said it is researching new ways for people to interact with AI beyond "traditional products and interfaces" as the firm makes its foray into physical products. -- This is a developing story and will be updated.

Apple sues OpenAI, two former employees for trade secrets theft

Apple on Friday filed a lawsuit against OpenAI and two former employees, alleging misappropriation of the iPhone maker's trade secrets to benefit the ChatGPT-owner's foray into consumer hardware. The complaint, filed in the U.S. District Court for the Northern District of California, alleges a coordinated effort to steal Apple's confidential information, including product designs, manufacturing processes and supply chain strategies. The lawsuit is against former senior system electrical engineer of Apple Chang Liu and former vice president of product design for iPhone and Apple Watch Tang Yew Tan, as well as OpenAI Foundation, OpenAI Group PBC and io Products. It dramatically escalates tension between Apple and the ChatGPT maker that has been simmering for months. OpenAI did not immediately respond to a Reuters request for comment. Apple alleged that Liu had failed to return a company-issued work laptop and later used an authentication bug to access Apple's internal network, downloading "dozens of Apple's confidential hardware-related files." The company also claimed that Tan "has been methodically using Apple's confidential information to benefit OpenAI" by emailing himself information about Apple suppliers and internal industry summaries before his departure. A person familiar with the matter told Reuters in May that OpenAI was exploring legal options against Apple, including notifying the technology giant of a breach of contract but potentially not filing a full lawsuit. The tensions between the two tech companies have strained their relationship and shown how the race to develop AI products has intensified competition for talent and proprietary technology. In 2024, Apple announced integration of its "Apple Intelligence" technology across its apps including Siri and brought OpenAI's chatbot ChatGPT to its devices. Their partnership allows users to access ChatGPT results through Siri, while iPhone users can also sign up for ChatGPT memberships directly from the iOS settings menu. OpenAI bought hardware startup io Products, founded by former Apple designer Jony Ive, last year in a $6.5 billion deal, underscoring its push to move beyond software into consumer hardware. Ive is not named in the lawsuit. Last month, Apple rolled out a long-delayed overhaul of Siri. The update comes two years after Apple first promised major upgrades that were repeatedly delayed.

Apple sues OpenAI for trade secret theft

Why it matters: Apple has lost significant talent to OpenAI as the frontier lab prepares to unveil its first hardware device this year. What they're saying: "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," Apple said in a statement. Between the lines: The lawsuit alleges that Chang Liu, a former senior electrical engineer at Apple kept a work-issued Apple laptop and discovered a bug that allowed him to access Apple's cloud file storage after leaving and while employed by OpenAI. * Liu celebrated the exploit, according to the filing. "LOL, I found out I can access the [network storage], so funny," he said in a message to a former colleague who was still employed by Apple. * The lawsuit claims that while Liu was developing hardware for OpenAI, he accessed and downloaded dozens of confidential files from Apple's network, many labeled as confidential. Driving the news: Tang Tan -- also mentioned in the complaint -- is an Apple veteran who worked on iPhone and Apple Watch and now serves as OpenAI's chief hardware officer. * Tang co-founded io Products as the dedicated hardware vehicle for OpenAI. * The lawsuit accuses Tan of using Apple's internal codenames to elicit even more information from potential OpenAI job candidates who currently work at Apple. * Tang tells them to bring "actual parts" (batteries, logic boards, SIPs) for "show and tell." He allegedly circulated a "Need to Know" Apple offboarding doc that he either retained or obtained to teach new OpenAI hires to dodge Apple's exit security checks, according to the filing. The intrigue: Jony Ive, Apple's former chief design officer who began collaborating with OpenAI in 2023, was not officially named in the suit. * Ive co-founded io Products with Tan and others. In May 2025, OpenAI announced its acquisition of io. * Ive now leads OpenAI's device work. Zoom out: Apple also accuses OpenAI of approaching Apples trusted partners with confidential Apple information as the AI firm developed its hardware device. * The filing alleges that OpenAI had one partner show off a trade secret metal-finishing technique, "misleading the partner to believe they had Apple's permission to do so." By the numbers: Apple says over 400 former employees are now employed by OpenAI. The big picture: Apple currently has a partnership to integrate ChatGPT into Apple's products. * OpenAI is also rumored to be launching a new hardware device soon. At Davos in January, OpenAI's chief global affairs officer Chris Lehane told Axios the device would come in the first half of 2026. Catch up quick: OpenAI has been preparing legal action against Apple over the companies partnership, Bloomberg reported earlier this year. * The AI firm reportedly considered sending Apple a notice claiming breach of contract, according to The New York Times. The bottom line: Apple seeks to stop defendants from possessing, using, or disclosing Apple trade secrets, the preservation and return of Apple materials and damages for loss caused by trade secret misappropriation and breach of contract.

Apple targets OpenAI workers over trade secrets theft lawsuit

The iPhone-maker has accused OpenAI of stealing hardware secrets from Apple via its former employees. Apple has reportedly contacted around 40 of its former employees who left the company for OpenAI, as it looks to gather evidence of alleged trade secrets theft by the AI juggernaut. The iPhone-maker launched a major lawsuit against OpenAI last week, accusing the company stealing hardware secrets from Apple via its former employees to develop its own line of devices. Reports of OpenAI's upcoming AI-powered smart speaker surfaced just days later. Sources told Bloomberg that the new device is designed to be a next-generation, ChatGPT-powered home computer - meant to be a physical embodiment of the AI chatbot. In the letters sent, the iPhone-maker has directed its ex-employees at OpenAI to collect and preserve documents relating to their time and transition from Apple. More than 400 former Apple workers are now employed at OpenAI. In its lawsuit, Apple accused OpenAI of a "coordinated pattern of misconduct at an institutional level", alleging that the AI start-up instructed potential job candidates from Apple to bring design artefacts and prototypes to their interviews. The lawsuit levelled accusations against two former Apple employees, including Io co-founder Tang Yew Tan, who currently serves as OpenAI's chief hardware officer. According to Apple, Tan had been "methodically using Apple's confidential information to benefit OpenAI". He has been accused of directing job candidates still working at Apple to bring confidential physical parts from products under development for 'show and tell' sessions at OpenAI. Tan co-founded Io alongside Apple design veteran Jony Ive, Scott Cannon and Evans Hankey in 2024, where he led the line as its chief hardware officer. The hardware start-up was acquired by OpenAI for $6.5bn last year. OpenAI had already owned around 23pc of Io prior to the acquisition. Bloomberg reported that tensions between the companies worsened after OpenAI poached Ive to help with its product line. Apple has been working on its AI offerings in hopes of catching up with its industry rivals. Earlier this year, reports emerged, suggesting Apple was set to move away from ChatGPT exclusivity for its Siri voice assistant. The company is also reportedly developing three AI-infused wearables, including smart glasses. Last month, it launched Siri AI, marketed as an "entirely new version of Siri". The new AI agent can draw from messages, emails, photos and more from Apple devices to power new features across editing, communication and organisation. The iPhone-maker is also reportedly on the lookout to acquire AI chip companies in a bid to reduce its dependency on Nvidia. Meanwhile, it renewed its deal with Broadcom for custom-made chips through to 2031. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Apple sues OpenAI, former employees over alleged intellectual property theft

Apple sues OpenAI, former employees over alleged intellectual property theft Apple Inc. today sued OpenAI Group PBC for allegedly stealing intellectual property related to its consumer devices. The iPhone maker filed the complaint with the U.S. District Court for the Northern District of California. OpenAI entered the consumer electronics market last year when it bought io Products Inc., a startup founded by former Apple executives. The Information reported in February that the ChatGPT developer was working on a smart speaker and smart glasses. Additionally, it's believed that OpenAI could launch a smart lamp with artificial intelligence features. The company has reportedly hired more than 400 former Apple employees to support its hardware push. According to today's lawsuit, OpenAI has been instructing candidates to bring blueprints and device prototypes from the iPhone maker to interviews. The ChatGPT developer allegedly also asked some Apple staffers to share engineering methodologies. One of the individuals allegedly involved in the effort is io Products co-founder Tang Tan, who is named as a defendant in the lawsuit. Tan spent more than two decades at Apple before launching the startup. He is currently OpenAI's Chief Hardware Officer. According to the lawsuit, Tan instructed Apple staffers recruited by OpenAI to stay as long as possible at the iPhone maker. He allegedly provided them with information about Apple's security procedures. The company charges that the information came from a confidential internal document improperly retained by Tan after his departure. The other individual that the lawsuit names as a defendant is Chang Liu, a former Apple engineer who joined OpenAI this year. The iPhone maker alleges that Liu failed to return a work laptop after his departure. Furthermore, Apple claims that Liu used the machine to log into its internal network and download dozens of files that contained information about upcoming products. The iPhone maker is seeking damages from OpenAI. Additionally, it has asked the court to block the ChatGPT developer from using its trade secrets without permission. "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 wrote in the lawsuit. OpenAI said in a statement responding to the complaint that "we have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." The lawsuit is particularly notable because Apple inked a product partnership with OpenAI in June 2024, a year before the io Products acquisition. The iPhone maker planned to integrate ChatGPT into Siri. This past January, Apple announced plans to release a new version of the AI assistant that will use Google LLC's Gemini model series.

Apple files lawsuit accusing ChatGPT maker OpenAI of stealing trade secrets

Apple on Friday accused OpenAI of stealing trade secrets as it seeks to build its own hardware for ChatGPT, a major rupture in a partnership between the iPhone maker and the artificial intelligence company. Apple said in the lawsuit filed in a California federal court that the theft of its trade secrets was part of a "coordinated pattern of misconduct at an institutional level" by OpenAI. "This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," the filing says. "Apple brings this suit to put a stop to it." Two former Apple employees who now work for OpenAI are also named as defendants. One is Tang Tan, who helped design the iPhone, Apple Watch and iPod and is now OpenAI's chief hardware officer. The other is Chang Liu, a former electrical engineer Apple says it entrusted with some of its most sensitive product development efforts before Liu left Apple to join OpenAI earlier this year. OpenAI did not immediately respond to requests for comment. OpenAI has never said exactly what type of device it is building but has described it as an effort to find a new way of interacting with AI that goes beyond "traditional products and interfaces." It's part of a broader push to create a physical embodiment of the latest AI advances, a decade after Amazon and Google introduced screen-free talking speakers into homes. The lawsuit claims the effort was built partly on knowledge stolen from Apple.

Apple Sues OpenAI for Stealing Trade Secrets to Build AI Hardware

Apple today accused OpenAI of stealing Apple trade secrets and intellectual property in its effort to develop an AI hardware device. In a lawsuit filed with the Northern District of California, Apple said it uncovered evidence of a months-long scheme to steal confidential information. Apple says OpenAI hardware lead and former Apple designer Tang Tan and former electrical engineer Chang Liu directed Apple employees interviewing with OpenAI to provide details on unreleased devices, components, manufacturing processes, and vendor relationships. In a statement to MacRumors, Apple said it is suing to protect the hard work of its employees. At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. 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. We will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so. Tan is accused of using his internal knowledge of Apple's exit procedures to help employees covertly deliver information, and giving OpenAI key information about Apple suppliers that has benefited OpenAI's work on an AI device. From the lawsuit: OpenAI also instructs new hires on how to avoid scrutiny when they leave Apple. For example, Mr. Tan warns them not to tell Apple that they have taken jobs at OpenAI, so they can stay at Apple as long as they can. After his own departure, Mr. Tan improperly retained or obtained an internal Apple managers' document marked "Need to Know" that describes security procedures for employee departures. Messages left on Apple-issued work devices show that Mr. Tan and his OpenAI colleagues have been sharing this document with new hires before they give notice to Apple of their departures, previewing Apple's security protocols. Unsurprisingly, Apple's investigation has found a pattern by employees who depart for OpenAI of taking steps to evade the security processes intended to protect Apple's confidential information. Apple says it discovered a pattern of OpenAI recruits emailing themselves confidential information when leaving Apple, including Tan. Others were "improperly using their knowledge of Apple's confidential and trade secret information to assist OpenAI in developing hardware." OpenAI apparently used confidential Apple hardware information when approaching Apple suppliers, and tricked one company into using a "specific trade secret metal-finishing technique" for an OpenAI device by claiming it had Apple's permission to do so. Apple says evidence on an employee's work-issued device indicates Tan instructed her to "bring some parts" she worked on to an interview, suggesting she show OpenAI batteries, SIPs, logic boards, and other hardware. It was not an isolated incident, and Apple claims several OpenAI interviewees were asked to do the same. Liu allegedly kept an Apple-issued laptop after departing the company and exploited a vulnerability to download dozens of confidential Apple documents while he was working at OpenAI. He also maintained a relationship with Yu-Ting "Alyssa" Peng, an Apple employee who continued to give him updates on Apple's projects, vendor decisions, and engineering details. When Liu learned he still had access to Apple's systems, he texted Peng "LOL, I found out I can access the [network storage], so funny." Apple accuses OpenAI leadership of creating a culture of hardware theft, and says OpenAI's hardware business is "rotten to its core" because of its reliance on information stolen from Apple. This is the tip of the iceberg. Apple lacks visibility into what's been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership. This much is clear, however: 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. As a natural result, 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 attempted to contact OpenAI in February when it first learned of the potential theft, but OpenAI did not respond, leading Apple to investigate further. Apple claims OpenAI is under pressure to debut a hardware device, which has led to the company taking shortcuts instead of investing in legitimate development. "OpenAI has turned to trade secret misappropriation to free-ride off Apple's decades of innovation," reads the lawsuit. Former Apple design chief and OpenAI designer Jony Ive is not named in the suit, but it does target io Products, which OpenAI acquired. While OpenAI CEO Altman is referenced, he isn't named as a defendant, and Apple doesn't suggest Ive or Altman were involved. Apple also does not appear to be targeting the ongoing OpenAI recruitment of Apple staff, though the lawsuit mentions that more than 400 former Apple employees now work at OpenAI. Apple mentions its ongoing partnership with OpenAI for Siri ChatGPT integration, but only to say that the agreement is not an issue in the lawsuit. Prior rumors suggest the relationship between Apple and OpenAI has been souring, with OpenAI allegedly considering a lawsuit against Apple because the integration failed to live up to OpenAI's expectations and Apple's promises. In its trade secret theft lawsuit, Apple is seeking an injunction to stop OpenAI from possessing, using, or disclosing its technologies as well as damages "in an amount to be determined at trial." It is also suing Tan and Liu for breach of contract for violating their agreements with Apple.

Apple, OpenAI suit spotlights battle over physical AI

Apple's trade secret lawsuit against OpenAI is putting a spotlight on a growing battle over physical, consumer-facing AI products as Silicon Valley pushes toward the next phase of the technology's development. The high-stakes suit centers on allegations that OpenAI stole confidential information about Apple hardware, as ChatGPT-maker' reportedly pursues its own smartphone. The battle between Apple and OpenAI is part of the brewing competition around hardware for "physical AI" products like phones, computers, and robotics. Legal and industry experts said it could be just the beginning of such disputes. "This case underlines that the next phase of the AI battle will be fought in factories and living rooms, not just in data centers," Paolo Pescatore, a tech analyst and founder of PP Foresight, told The Hill Tuesday. "The AI race is moving beyond models and chatbots towards who controls the device, interface and direct relationship with the consumer," Pescatore said. "As AI becomes physical, industrial design, components, manufacturing expertise and supply-chain relationships are becoming every bit as valuable as algorithms." Apple filed the suit last Friday, accusing OpenAI and two former employees of stealing Apple's confidential information and handing it over to the AI firm when they joined the company. Attorneys for Apple alleged OpenAI has "instructed" the company's employees to bring proprietary information like design prototypes, tools or communications with vendors to interviews to discuss details about their work. One of the named defendants is Tang Yew Tan, worked for Apple for 24 years, most recently as vice president of product design for the iPhone and Apple Watch, before joining OpenAI as its chief hardware officer. Apple accused Tan of meeting with OpenAI or its collaborators before he left Apple, discussing company meetings with a supplier and emailing himself information about Apple's supplier. At OpenAI, he allegedly sought insider knowledge from Apple employees when interviewing them for roles at the company. While the suit centers on trade secret law violations, industry and legal observers suggested it is driven by the fierce competition between the tech giants, which partnered in a deal less than two years ago. "This lawsuit isn't just about the trade secret claim, it's in my view an early indication of the battle over AI and that it's moving from software into physical products," trade secrets attorney Jeffrey Farrow told The Hill. "For the past few years, technology companies have competed over foundation models and cloud infrastructure and in the future, they're going to compete over who builds the devices that people interact with every day," added Farrow, a partner and litigation department chair at Michael Robinson. OpenAI has one of the most popular AI products, but the iPhone maker still has a decades-long grip on consumer technology and design. OpenAI has reportedly been developing a smartphone with AI agents that could compete directly with Apple's landmark iPhone. OpenAI CEO Sam Altman said last November the forthcoming device will be more "peaceful and calm" than an iPhone, while court records indicate the firm is also looking into custom earphones. The company stoked more speculation last year when it acquired the AI hardware startup io, which was co-founded by Tan and Apple's former design chief, Jony Ive. The latter was notably not named in the suit. When asked about the suit, tech analyst Dan Ives said the io acquisition has madeOpenAI "a lot more competitive" to Apple. The suit claims more than 400 former Apple employees now work for OpenAI, though Silicon Valley firms are known for their revolving doors and highly competitive offers. OpenAI has shared few specifics about its device plans and timeline, though Chris LeHane, OpenAI's chief global affairs officer, said in January the company is "on track" to unveil its first device in the second half of this year. Ives suggested OpenAI may not be an immediate threat to Apple, but "down the road, Apple needs to defend their territory." "It was a smart move for Apple to kind of put a stake in the sand and make sure than OpenAI knows where Apple stands," Ives said. Altman wrote on X he is "not afraid" of Apple, but has "tremendous respect," for the company, calling it "s-tier," a phrase denoting one as the best in their class Still, the suit is likely to inflame an already-tense relationship between the two firms, which first partnered in 2024 to integrate ChatGPT into Apple's devices. Reports emerged in May that their partnership had strained and OpenAI was considering legal action over failing to get the expected benefits from the deal. Apple is asking the court to issue a preliminary injunction to stop the named defendants from using the trade secrets and confidential information, along with monetary damages. The suit could be a major obstacle not only for OpenAI's hardware ambitions, but also its plans to launch an initial public offering. Bryan Sterba, a partner at the tech litigation firm Lowenstein Sandler LLP, said the case, especially if it does not settle quickly, could "really, really slow down OpenAI's plans to go to market," and "hang a cloud" over the firm's other transactions. "If the trade secrets at issue referenced by Apple are relevant to all of those physical AI consumer products, that would tremendously hamper their ability to commercialize in the near term," Sterba said. "This will really affect their ability to continue doing [research and development], to continue investing." Apple's lawsuit is the latest challenge Altman has faced involving formerbusiness partners or employees. Just months ago, the OpenAI founder fended off a challenge from SpaceX CEO Elon Musk, who formed OpenAI alongside him in 2015. A California federal jury unanimously rejected Musk's claims over the company's alleged shift away from its founding mission. The jury found Musk took too long to file the lawsuit, missing the deadline for the three-year statute of limitations, and the judge threw out all of the claims. "With the trillions of dollars up for grabs, there's going to be a lot of competition for employees, and you're going to see a lot of moves in Silicon Valley and companies are going to do what they need to do to protect themselves," Ives said.

Apple Files Lawsuit Accusing ChatGPT Maker OpenAI of Stealing Trade Secrets

Apple on Friday accused OpenAI of stealing trade secrets as it seeks to build its own hardware for ChatGPT, a major rupture in a partnership between the iPhone maker and the artificial intelligence company. Apple said in the lawsuit filed in a California federal court that the theft of its trade secrets was part of a "coordinated pattern of misconduct at an institutional level" by OpenAI. "This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," the filing says. "Apple brings this suit to put a stop to it." Two former Apple employees who now work for OpenAI are also named as defendants. One is Tang Tan, who helped design the iPhone, Apple Watch and iPod and is now OpenAI's chief hardware officer. The other is Chang Liu, a former electrical engineer Apple says it entrusted with some of its most sensitive product development efforts before Liu left Apple to join OpenAI earlier this year. OpenAI did not immediately respond to requests for comment. OpenAI has never said exactly what type of device it is building, but has described it as an effort to find a new way to interact with AI that goes beyond "traditional products and interfaces." It's part of a broader push to create a physical embodiment of the latest AI advances, a decade after Amazon and Google introduced screen-free talking speakers into homes. The lawsuit claims the effort was built partly on knowledge stolen from Apple. "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," the lawsuit says. Apple said it began investigating whether some of its confidential information was compromised and "uncovered a pattern of theft" of Apple's trade secrets by former employees who moved on to positions at OpenAI. The lawsuit alleges both Liu and Tan accessed Apple's confidential company information and files while working at OpenAI. Among the allegations, Apple claims Liu accessed and downloaded several confidential hardware-related files on an Apple-issued device he kept after departing. It also alleges Tan directed job candidates who were still working for Apple to bring "Actual parts" from Apple to their interviews at OpenAI. Apple said in the lawsuit that it reached out to OpenAI in February to raise its concerns early in its investigation, but said that OpenAI did not respond. An Apple spokesperson said in a statement Friday that the company will "always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so."

Apple's Lawsuit Could Threaten OpenAI's Rumoured Smartphone Plans

Lawsuit is likely to disturb OpenAI's potential to build an iPhone rival Apple's latest legal action against OpenAI appears to disrupt the AI company's plans to bring consumer hardware to rival the iPhone. The Cupertino-based company reportedly filed a lawsuit last week accusing OpenAI of misappropriating its intellectual property. The lawsuit alleges that OpenAI asked former Apple employees to share information about Apple's unreleased products and trade secrets. Apple claims that OpenAI has aggressively recruited talent from Apple's engineering division, and the company now employs more than 400 former Apple workers. Apple Accuses OpenAI of Misusing Trade Secrets As per a report by Bloomberg, in the lawsuit, Apple claims that OpenAI asked former Apple employees and even prospective hires to share confidential details about unreleased products. Apple also claims the company advised recruits on how to avoid its internal security procedures. Apple is seeking financial damages in the complaint, alongside a court order requiring OpenAI to stop the alleged conduct and destroy any proprietary materials. This lawsuit is likely to affect the ChatGPT maker's hiring efforts and its future product development plans. OpenAI reportedly said it has "no interest in other companies' trade secrets" and would "remain focused on building innovative technology." In the lawsuit, Apple reportedly claims that OpenAI aggressively hired people from Apple and extensively hired talent from iPhone, Apple Watch, AirPods and other major product departments. The lawsuit alleges that OpenAI now employs more than 400 former Apple workers, with high compensation packages. Based on this, the iPhone maker recently offered large retention bonuses for its employees. Apple says OpenAI hired more people who were involved in iPhone product design. Apple reportedly said the lawsuit is squarely about trade secrets and characterised OpenAI's hardware work as nascent. "This lawsuit and the discovery process are needed to expose and begin to remedy the pervasive theft of Apple's trade secrets," the company reportedly said. The lawsuit could pose a challenge to OpenAI's potential to build an iPhone competitor. The lawsuit and concerns about OpenAI's methods may cause many Apple employees to reconsider leaving for OpenAI. OpenAI has been working on its hardware division to launch its first AI agent phone to rival the iPhone. The mass production of this device is said to start as early as the first half of next year. Previous leaks claimed that MediaTek is likely to be the exclusive chip supplier for the OpenAI smartphone. It could run on a custom version of the MediaTek Dimensity 9600 chipset, manufactured using TSMC's N2P process technology.

AI trade secrets theft: Apple files lawsuit accusing ChatGPT maker OpenAI of stealing trade secrets

Apple has accused OpenAI of stealing its trade secrets for new hardware. Two former Apple employees now working for OpenAI are named defendants. The lawsuit claims OpenAI encouraged employees to share confidential information. OpenAI stated it has no interest in other companies' trade secrets. This legal action marks a significant rift in their partnership. Apple on Friday accused OpenAI of stealing trade secrets as it seeks to build its own hardware for ChatGPT, a major rupture in a partnership between the iPhone maker and the artificial intelligence company. Apple said in the lawsuit filed in a California federal court that OpenAI encouraged Apple employees it was recruiting to share confidential information, even guiding how to avoid scrutiny when taking jobs at the other company. "This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," the filing says. "Apple brings this suit to put a stop to it." Two former Apple employees who now work for OpenAI are also named as defendants. One is Tang Tan, who helped design the iPhone, Apple Watch and iPod and is now OpenAI's chief hardware officer. The other is Chang Liu, a former electrical engineer Apple says it entrusted with some of its most sensitive product development efforts before Liu left Apple to join OpenAI earlier this year. OpenAI said it is still reviewing the filing, but spokesperson Drew Pusateri said in a statement Friday that OpenAI has "no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." The suit accuses OpenAI of seeking shortcuts on hardware OpenAI has never said exactly what type of device it is building, but has described it as an effort to find a new way to interact with AI that goes beyond "traditional products and interfaces." It's part of a broader push to create a physical embodiment of the latest AI advances, a decade after Amazon and Google introduced screen-free talking speakers into homes. The lawsuit claims the effort was built partly on knowledge stolen from Apple. "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," the lawsuit says. Apple said it began investigating whether some of its confidential information was compromised and "uncovered a pattern of theft" of Apple's trade secrets by former employees who moved on to positions at OpenAI. The lawsuit alleges both Liu and Tan accessed Apple's confidential company information and files while working at OpenAI. Among the allegations, Apple claims Liu accessed and downloaded several confidential hardware-related files on an Apple-issued device he kept after departing. It also alleges Tan directed job candidates who were still working for Apple to bring "Actual parts" from Apple to their interviews at OpenAI. Apple said in the lawsuit that it reached out to OpenAI in February to raise its concerns early in its investigation, but said that OpenAI did not respond. An Apple spokesperson said in a statement Friday that the company will "always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so." A partnership with Apple has edged toward rivalry Apple sought help from OpenAI several years ago as it was behind in the AI race sparked by ChatGPT's arrival. The two companies partnered in 2024 to use ChatGPT as an AI-powered "answer engine" on the iPhone when the built-in Siri technology couldn't satisfy user needs. More recently, the partnership has veered toward rivalry. As part of its expansion efforts, OpenAI recruited former Apple designer Jony Ive to oversee a project to build an AI-powered device that many analysts believe could eventually challenge Apple's products. Last year, OpenAI announced it was working on a secret hardware collaboration with Ive to pioneer a new way of communicating with artificial intelligence. As part of the collaboration, OpenAI acquired io Products, a product and engineering company co-founded by Ive, Tan and two others, in a deal valued at nearly $6.5 billion. That led a little-known tech startup iyO Inc. to sue Ive and OpenAI CEO Sam Altman for trademark infringement due to the similar-sounding name and the firms' past interactions. The startup also sued one of its own former employees for allegedly leaking a confidential drawing of iyO's unreleased product, and it later added trade secret theft claims against Tan to the lawsuit. Apple's lawsuit also names io Products as a defendant. Lawyers who previously represented the firm and Tan referred The Associated Press to OpenAI for comment. Apple's lawsuit comes as OpenAI has been exploring whether to go public on Wall Street and faces heightened competition from rivals including Anthropic and Google. OpenAI winnowed down some of its business ventures earlier this year to focus on its core product, ChatGPT, but has continued to pursue a device, the company's chief financial officer told The Associated Press this spring. "We have consumer hardware that will come towards the end of this year," CFO Sarah Friar told the in April.

Apple Files Lawsuit Accusing ChatGPT Maker OpenAI Of Stealing Trade Secrets

Apple said in the lawsuit that it reached out to OpenAI in February to raise its concerns early in its investigation, but said that OpenAI did not respond. Apple on Friday accused OpenAI of stealing trade secrets as it seeks to build its own hardware for ChatGPT, a major rupture in a partnership between the iPhone maker and the artificial intelligence company. Apple said in the lawsuit filed in a California federal court that the theft of its trade secrets was part of a "coordinated pattern of misconduct at an institutional level" by OpenAI. "This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," the filing says. "Apple brings this suit to put a stop to it." Two former Apple employees who now work for OpenAI are also named as defendants. One is Tang Tan, who helped design the iPhone, Apple Watch and iPod and is now OpenAI's chief hardware officer. The other is Chang Liu, a former electrical engineer Apple says it entrusted with some of its most sensitive product development efforts before Liu left Apple to join OpenAI earlier this year. OpenAI did not immediately respond to requests for comment. OpenAI has never said exactly what type of device it is building, but has described it as an effort to find a new way to interact with AI that goes beyond "traditional products and interfaces." It's part of a broader push to create a physical embodiment of the latest AI advances, a decade after Amazon and Google introduced screen-free talking speakers into homes. The lawsuit claims the effort was built partly on knowledge stolen from Apple. "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," the lawsuit says. Apple said it began investigating whether some of its confidential information was compromised and "uncovered a pattern of theft" of Apple's trade secrets by former employees who moved on to positions at OpenAI. The lawsuit alleges both Liu and Tan accessed Apple's confidential company information and files while working at OpenAI. Among the allegations, Apple claims Liu accessed and downloaded several confidential hardware-related files on an Apple-issued device he kept after departing. It also alleges Tan directed job candidates who were still working for Apple to bring "Actual parts" from Apple to their interviews at OpenAI. Apple said in the lawsuit that it reached out to OpenAI in February to raise its concerns early in its investigation, but said that OpenAI did not respond. An Apple spokesperson said in a statement Friday that the company will "always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so."

Apple sues OpenAI over alleged theft of trade secrets

Apple is suing OpenAI, accusing the major AI firm and industry partner of attempting to access and steal confidential information about their tools, processes and unreleased products through job interviews with their employees. The lawsuit, filed Friday in a California federal court, accuses OpenAI and two former employees of stealing Apple's confidential information and handing it over to the ChatGPT-maker when they joined the company. The former employees include Tang Yew Tan, a 24-year veteran of Apple who served as vice president of product design for the iPhone and Apple Watch before joining OpenAI as its chief hardware officer, and Chang Liu, who is now at OpenAI after spending eight years as a senior system electrical engineer at Apple. OpenAI "has been instructing" Apple employees to bring proprietary information like design prototypes, tools, or communications with vendors, to interviews to "divulge" details about their work, attorneys for Apple wrote Friday. "Apple does not bring this action lightly. Apple operates in the most competitive markets in the world and focuses on creating and shipping the very best products and services that embody its innovations," Apple's legal team said in the filing. "But it cannot tolerate the theft of its trade secrets. In light of the troubling evidence it has seen so far, Apple is left with no choice." As a result of the alleged theft, Apple's attorneys argue OpenAI's hardware business "now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets." The Hill reached out to OpenAI for comment. The suit comes amid growing tensions between the two technology giants, which first partnered in 2024 to integrate ChatGPT into Apple's devices. Reports emerged in May that their partnership has strained and OpenAI was considering legal action over failing to get the expected benefits from the deal. Upon leaving Apple last January, Liu allegedly did not confirm he returned his devices or schedule an interview. Liu took his Apple-issued work laptop with him, which he accessed once employed by OpenAI, attorneys for Apple said, and "celebrated" it in a message to a former Apple colleague. Over the following weeks, Liu allegedly accessed and downloaded dozens of Apple's confidential files related to hardware while developing for OpenAI, and coached a former Apple colleague on how to avoid scrutiny when leaving the company. Apple said its investigation found other former Apple employees also emailed themselves the company's confidential information to personal accounts when leaving for OpenAI, while some used the trade secret information during hardware development. The lawsuit accuses Tan of meeting with OpenAI or its collaborators before he left Apple and discussing company meetings with a supplier, in addition to emailing himself information about Apple's suppliers. At OpenAI, Tan has allegedly sought to obtain insider knowledge from Apple employees when interviewing them for roles at the ChatGPT maker, asking about the status of unannounced Apple products and directing candidates to bring "actual parts" for "show and tell" sessions. The filing also notes Apple raised concerns to OpenAI during the early stages of its investigation in February, alleging the company did not respond.

Apple Widens Trade Secrets Fight With OpenAI, Targets Former Employees - Apple (NASDAQ:AAPL)

The letters instruct recipients to preserve any documents, communications, or other materials that could be relevant to Apple's claims and to meet with the company's attorneys, the Financial Times and Seeking Alpha reported. The move is designed to safeguard potential evidence as litigation proceeds. OpenAI reportedly employs as many as 400 former Apple workers, underscoring the intense competition for AI talent between the two companies. Apple claims the alleged misappropriation was directed by senior OpenAI leadership rather than being limited to isolated employee actions. The lawsuit marks a sharp escalation in tensions between two companies whose relationship has become increasingly complex. While Apple has integrated OpenAI's ChatGPT into Apple Intelligence features across its ecosystem, OpenAI has simultaneously emerged as a potential hardware competitor following its acquisition of former Apple design chief Jony Ive's AI startup and its push into consumer AI devices. The dispute also comes as OpenAI accelerates its consumer hardware ambitions. This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Analyst Calls Apple's And OpenAI's Relationship "Increasingly Fragile," Says The Lawsuit Can Delay The AI Firm's Hardware Ambitions "Even If The Allegations Are Not Proven

A lawsuit from Apple's end has unraveled, claiming that OpenAI not only poached 400 employees, but also obtained hardware samples that would be used to fulfill the AI firm's consumer hardware goals. As the relationship between the two companies begins to sour over this legal skirmish, an analyst believes that the lawsuit will become a thorn in OpenAI's path as it tries to leapfrog the iPhone and attempt to construct a direct relationship with customers. OpenAI has said that it has "no interest in other companies' trade secrets," with Apple alleging that a former employee had access to confidential hardware files The company behind the AI chatbot ChatGPT is no stranger to lawsuits, as Apple's filing in the U.S. District Court comes shortly after OpenAI successfully defended itself from Elon Musk's xAI. However, aside from providing users with intelligent programs, OpenAI also has lofty ambitions of entering the consumer hardware space, and for its plans to reach fruition, it acquired Jony Ive's design firm, io, for $6.5 billion. Ive, Apple's former Chief Design Officer, is reportedly working with Sam Altman to develop a device that supposedly lacks a display and is slightly smaller than the now-defunct Ai Pin. While Apple may not have had a problem that OpenAI snagged a former executive, especially since Ive departed the Cupertino giant long before he began a partnership with Altman, OpenAI's other tactics have rubbed Apple the wrong way. As reported by Reuters, PP Foresight analyst Paolo Pescatore states that due to the events that transpired involving former Apple recruits allegedly showcasing the company's hardware samples to OpenAI, their relationship is slowly eroding. Pescatore says that even if these allegations aren't proven, it could dent the AI firm's hardware ambitions. "Apple sees OpenAI moving from partner to potential rival, while OpenAI is trying to reduce its dependence on the iPhone and build a direct relationship with consumers. Even if the allegations are not proven, the lawsuit could delay OpenAI's hardware ambitions and further weaken what is already becoming an increasingly fragile partnership." OpenAI has come forth, saying that "we have no interest in other companies' trade secrets, we remain focused on building innovative technology that empowers people everywhere," and while poaching a competitor's employees isn't illegal in California, Stanford Law School professor Mark Lemley says that "if Apple's claims that the employees took confidential documents with them -- and that OpenAI is using those documents -- are true, that is a problem for OpenAI." Typically, lawsuits surrounding AI are largely focused on software rather than hardware, suggesting that the case could become more complex with the passage of time. We're confident we'll learn significantly more, so readers are recommended to await future updates. News Source: Reuters Follow Wccftech on Google to get more of our news coverage in your feeds.

Apple sues OpenAI for trade secret theft in pivotal case

Apple sued OpenAI for trade secret theft, accusing the artificial intelligence startup and its hardware chief of engaging in a coordinated campaign to steal information about upcoming products. The iPhone maker said in a suit Friday that OpenAI encouraged Apple employees to share information, components, drawings and other materials related to upcoming products -- part of efforts by the AI company to develop its own suite of devices. As part of the litigation, filed in the Northern District of California, Apple also named Tang Tan, the chief hardware officer at OpenAI. He was previously Apple's vice president of product design, leading development of the iPhone, smartwatch, AirPods and several other offerings in the company's hardware engineering division.

Apple sues OpenAI, two former employees for trade secrets theft

Apple has sued OpenAI and two former employees alleging trade secret theft. The lawsuit claims confidential information was used to accelerate hardware development. OpenAI denies any interest in other companies' trade secrets. This legal action escalates tensions as both companies race for AI dominance. The case could impact OpenAI's consumer hardware ambitions significantly. Apple on Friday sued OpenAI and two former employees, alleging misappropriation of its trade secrets to benefit the ChatGPT-owner's foray into consumer hardware, a dramatic escalation of already simmering tension between the two companies. The complaint accuses OpenAI of orchestrating a broad effort to systematically acquire and exploit Apple's confidential information through former employees, recruiting practices and supplier relationships to accelerate its push into the consumer hardware business. Also read: Apple supplier Tata Electronics tightens internal controls after data breach "We have no interest in other companies' trade secrets," OpenAI said in a statement. "We remain focused on building innovative technology that empowers people everywhere." The lawsuit sets up a battle over who will control future AI devices that may not use traditional apps or operating systems - devices which, if successful, would direct consumer attention away from Apple's best-selling iPhone. Analysts believe OpenAI is working on a phone or other device of its own. Tensions between the two tech companies have strained their relationship, as the race to develop ⁠AI products ⁠has intensified competition for talent and proprietary technology. "Apple sees OpenAI moving from partner to potential rival, while OpenAI is trying to reduce its dependence on the iPhone and build a direct relationship with consumers," said PP Foresight analyst Paolo Pescatore. "Even if the allegations are not proven, the lawsuit could delay OpenAI's hardware ambitions and further weaken what is already becoming an increasingly fragile partnership." Apple's lawsuit, which was filed in the U.S. District Court for the Northern District of California, comes just after OpenAI successfully fended off a legal challenge from Elon Musk's xAI. Also read: Apple iPhone 18 Pro supplier list, parts and photos exposed in Tata data leak The two former Apple employees named in the suit are Chang Liu, a former senior system electrical engineer, and former vice president of product design for iPhone and Apple Watch, Tang Yew Tan. Neither immediately responded to a request for comment. Apple alleged that Liu failed to return a company-issued work laptop and later used an authentication bug to access Apple's internal network, downloading "dozens of Apple's confidential hardware-related files." The iPhone maker also claimed that OpenAI's hardware chief Tan had been "methodically using Apple's confidential information ⁠to benefit OpenAI" before his departure by emailing himself information about Apple suppliers and internal industry summaries. Tan worked on the iPhone for most of his 24-year tenure at Apple, according to his LinkedIn page. Apple alleged that Tan encouraged Apple employees to bring parts from Apple to job interviews at OpenAI for "show and tell" sessions, citing an incident in its filing where ⁠one OpenAI job candidate allegedly said that he "didn't even know we could take those from the office." OpenAI Foundation, OpenAI Group PBC, the company's commercial arm, and io Products, which OpenAI acquired, were also named as defendants. CONFIDENTIAL INFORMATION In its complaint, Apple claimed it wrote to OpenAI in February with concerns that its confidential information was making its way to OpenAI and asking to discuss the matter, but it received no reply. More than 400 former Apple employees now work for OpenAI, it said in its filing, adding that "it is not surprising" that some of them have knowledge of its 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," the iPhone maker wrote in its complaint. Apple also alleged that OpenAI employees sought confidential information from Apple suppliers, at one point allegedly having one of those suppliers carry out what Apple called a secret metal finishing technique on the belief that OpenAI had Apple's permission to use the technique. Mark Lemley, a professor at Stanford Law School, said that Apple's complaint "has the potential to be a very big case" but that some of what Apple alleges, such as OpenAI's hiring of hundreds of Apple employees, is not illegal in California, where Silicon Valley sprang up in part thanks to state laws that allow employees leave for a competitor. "But if Apple's claims that the employees took confidential documents with them - and that OpenAI is using those documents - are true, that is a problem for OpenAI," ⁠Lemley said. Camilla Hrdy, a law professor at Rutgers Law School, said the case could become complex because most of the previous cases around AI and trade secrets have involved software rather than hardware. "These trade secret lawsuits are frequently brought in the tech space, and we usually learn much, much more as the case develops. OpenAI is not a defendant that can't afford to defend itself," Hrdy said. SIMMERING TENSION A person familiar with the matter told Reuters in May that OpenAI was exploring legal options against Apple, including notifying the technology giant of a breach of contract but potentially not filing a full lawsuit. In 2024, Apple announced the integration of its Apple Intelligence technology across its apps including Siri and brought OpenAI's chatbot ChatGPT to its devices. Their partnership allows users to access ChatGPT results through Siri, while iPhone users can also sign up for ChatGPT memberships directly from the iOS settings menu. Apple rolled out a long-delayed overhaul of Siri last month. The update comes two years after Apple first promised major upgrades that were repeatedly delayed. OpenAI bought hardware startup io Products, founded by former Apple designer Jony Ive, last year in a $6.5 billion deal, in a push to move beyond software into consumer hardware. Ive is not named in the lawsuit.

Apple Demands Documents From Former Employees Now at OpenAI | PYMNTS.com

The move is part of Apple's efforts to secure evidence for the lawsuit it filed last week against OpenAI and two of the artificial intelligence company's employees, alleging that they stole trade secrets, according to the report. About 400 former Apple employees now work at OpenAI, per the report. Neither Apple nor OpenAI immediately replied to PYMNTS' request for comment. Apple filed its lawsuit July 10, alleging that OpenAI, Chief Hardware Officer Tang Tan and technical staff member Chang Liu stole trade secrets from Apple to support OpenAI's development of devices. Tan and Liu are former Apple employees. Apple said in the lawsuit that it doesn't know what OpenAI did with the information it alleges was stolen by Tan and Liu but claimed that "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." With its lawsuit, the company is demanding that OpenAI stop the practices alleged in the suit, destroy any proprietary materials and redesign its upcoming products so that they don't use any Apple technology. In a July 10 post on social platform X, OpenAI Director of Strategic Communications Drew Pusateri said: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." It was reported Sunday (July 12) that Apple's lawsuit came as the tech world scrambles to develop AI-powered devices that go a step beyond the smartphone and that the winner of this race could play the same role Apple now plays in the consumer market. OpenAI released its first hardware product Wednesday (July 15). The product is a $230 programmable macropad for developers managing AI coding agents. It was reported Tuesday (July 14) that the company is developing a portable smart speaker that serves as an AI companion. OpenAI aims to reveal the device this year and launch it in 2027.

Apple Files Lawsuit Against OpenAI Over Alleged Theft of Confidential Hardware Secrets

Apple has initiated a high-profile legal battle against OpenAI, accusing the artificial intelligence company and two former Apple employees of illegally acquiring confidential hardware information to strengthen OpenAI's consumer hardware business. The lawsuit, filed in the U.S. District Court for the Northern District of California, raises serious allegations involving trade secrets, engineering data, and proprietary manufacturing knowledge. Apple Alleges Misuse of Sensitive Hardware Information According to the lawsuit, Apple claims that confidential engineering documents, manufacturing processes, technical specifications, and details of unreleased products were improperly accessed and retained by former employees before and after they left the company. The tech giant alleges that this information was later used to support OpenAI's expanding hardware ambitions. Apple argues that the alleged actions go beyond isolated incidents and reflect a broader pattern involving former employees who later joined OpenAI or its affiliated companies. Former Apple Executives Named in the Case Among those named in the lawsuit are Tang Tan, a former Apple Vice President who played a key role in the company's hardware design, and Chang Liu, a former senior systems electrical engineer. Following his departure from Apple, Tan joined io Products, the AI hardware startup founded by former Apple design chief Jony Ive. OpenAI acquired io Products in a multi-billion-dollar deal last year, bringing several experienced hardware engineers into the company. Apple alleges that Chang Liu continued accessing Apple's internal systems even after leaving the organization and downloaded confidential engineering presentations, manufacturing documents, technical specifications, and proprietary project files. The company also claims Liu advised another employee on methods to copy sensitive information while avoiding internal detection mechanisms. According to Apple, interview discussions allegedly included references to internal Apple project codenames and requests for physical hardware components to better understand unreleased technologies. If proven, these claims could significantly strengthen Apple's case regarding the alleged misuse of trade secrets. Concerns Over Manufacturing and Supplier Information Beyond engineering documents, Apple claims that confidential supplier relationships and manufacturing expertise were also targeted. The lawsuit alleges that OpenAI used proprietary supplier information to approach manufacturing partners that have long collaborated with Apple and sought assistance involving production methods developed specifically for Apple products. The company argues that such information represents years of research, investment, and collaboration, making its protection critical to maintaining its competitive advantage. The lawsuit seeks financial damages, the immediate return or destruction of any confidential Apple information allegedly obtained, and court orders preventing further use or disclosure of the company's proprietary trade secrets. OpenAI has not yet issued a detailed public response to the allegations, and the matter will now proceed through the U.S. legal system.

'OpenAI Is Burning It Down With One Mag 7 After Another' -- Apple's Trade Secret Lawsuit Has Tech Analysts

Newman Links Apple Lawsuit To OpenAI's Growing Mag 7 Tensions Reacting to Apple's lawsuit filed Friday in the U.S. District Court for the Northern District of California, Newman suggested OpenAI's relationships with some of the world's biggest technology companies are rapidly deteriorating. "OpenAI burning it down with one Mag 7 after another. First $MSFT and now $AAPL," Newman wrote on X. His remarks came as Apple accused OpenAI of misappropriating trade secrets to accelerate the development of consumer AI devices. The complaint alleges former Apple engineer Chang Liu accessed Apple's internal network without authorization after joining OpenAI and claims the company engaged in a broader pattern of recruiting Cupertino's employees while obtaining confidential information related to unreleased technologies. The allegations have not been proven in court. Elon Musk Weighs In As Microsoft Relationship Also Faces Scrutiny Musk also reacted to the lawsuit, replying "Sounds pretty bad" to a post highlighting allegations involving Liu. In a separate response to news of Apple's lawsuit, Musk simply posted, "!!" A federal jury ruled that Musk, an OpenAI co-founder, filed his lawsuit too late after alleging that CEO Sam Altman, co-founder Greg Brockman and the company abandoned their original commitment to operate as a nonprofit. Musk has said he plans to appeal. Price Action: Apple shares closed Friday down 0.28% at $315.32 and slipped another 0.11% to $314.96 in after-hours trading, according to Benzinga Pro. According to Benzinga Edge Stock Rankings, Apple sits in the 98th percentile for Quality, underscoring its solid short, medium and long-term performance. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

OpenAI Poached Over 400 Apple Employees And Told Recruits To Bring Hardware Samples For 'Show And Tell' Sessions, Apple's Lawsuit Alleges

OpenAI has been relentlessly poaching talent from Apple, including from its core design team, ever since the maker of ChatGPT acquired Jony Ive's startup, called io. Now, however, it seems Apple has had enough, and has lobbed its own volley via a high-profile lawsuit, accusing OpenAI of stealing trade secrets related to a slew of its upcoming AI devices. Apple: "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" As per the information that is just trickling in, Apple has filed a civil lawsuit against OpenAI in the Northern District of California, accusing the maker of ChatGPT of stealing its trade secrets related to a slew of upcoming consumer AI devices. The lawsuit specifically names Tang Tan, a former VP of Design at Apple, and Chang Liu, an erstwhile senior system electrical engineer, as co-accused. Finally, apart from levying accusations against OpenAI, the lawsuit also names Jony Ive's io as a defendant. Do note that OpenAI bought io last year for $6.5 billion. Here are all of Apple's accusations in the lawsuit: Right now, Apple is seeking an injunctive relief and damages for the theft of its trade secrets. Of course, today's development comes as OpenAI has continued to steal Apple's talent over the past few months in its quest to develop an "iPhone Killer" consumer AI device. We reported back in 2025 that OpenAI had hired as many as 40 Apple engineers, including Matt Theobald, a manufacturing design expert, and Cyrus Daniel Irani, the lead on human interface design To counter OpenAI's siren call, Apple recently increased the bonus for its key design team members, who now stand to earn between $200,000 and $400,000 in annual bonuses, depending on how Apple's stock performs. This comes as OpenAI has been working on a number of AI devices, including AI-powered earbuds that bear the internal codename "Sweetpea" but might retail under the "Dime" brand name, and a consumer device that is shaped like a pen and bears the internal codename "Gumdrop." Follow Wccftech on Google to get more of our news coverage in your feeds.

Apple's lawsuit against OpenAI over hardware secrets support Palantir CEO's warnings about AI

The artificial intelligence boom has been nothing but a headache for Apple (AAPL) since it started. The stock quickly gained a reputation as an AI laggard. The company recently had to raise prices for some of its products due to the skyrocketing memory prices, caused by the AI buildout. The difficult situation prompted it to start lobbying the Trump administration for clearance to buy memory chips from ChangXin Memory Technologies (CXMT), which is on the Pentagon's blacklist. Apple is now going straight for the heart of the AI bubble by suing OpenAI. Apple alleges trade secret theft by former employees and OpenAI On July 10, Apple filed a lawsuit in a federal court in Northern California, alleging that its former employees Chang Liu and Tang Yew Tan, currently working for OpenAI, stole Apple's intellectual property in order to develop OpenAI's own consumer hardware. The filing states some very damning things: "This much is clear, however: 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." Drew Pusateri, spokesperson for OpenAI, posted a response on X: "Our statement in response to this suit: We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." If the allegations are proven true, they will also prove that Palantir CEO Alex Karp's recent statements about the AI industry must be taken seriously. Mariia Shalabaieva/Unsplash Alex Karp blasts the AI industry on CNBC Squawk Box Palantir CEO Alex Karp's interview on CNBC's Squawk Box quickly turned from what was supposed to be a discussion of Palantir's new partnership with Nvidia into a heavy critique of frontier AI model companies. Karp talked about the issues very passionately, using too much expert-level terminology, to the point that what was being said left many people scratching their heads. However, for those proficient in the inside baseball, he was absolutely making sense, though he could have done it a bit more coherently, as his thoughts were jumping too much from one topic to another. Here is the key part of the interview where Karp laid it all out: "In this country, at every single enterprise I deal with, these people are livid. They're like, I am paying for tokens that create no value. These people are stealing the weights and alpha of my business, and they're creating a wealth tax that does not help the poor." He also said: "[If] I can make you $1 billion tomorrow, wouldn't I say I'll make you $1 billion, and I want 30%. Why are they charging for tokens if it's so valuable?" If we unpack what he said, he raised three key issues within the industry: * AI customers feel that Large language models (LLMs) create no value * Charging for tokens is impractical * Frontier model makers can steal their customers' IP if they wish Pointing out the issues was certainly motivated by a promotion of Palantir's product Ontology. However, he didn't really try to hide that. Here is what he said: "We have this thing called ontology that now everyone's copying, but de facto, it takes a large language model, it makes it safe and useful and precise. So safe because it doesn't touch your underlying data, safe because it prevents the large language model from caching your data and replicating your business." Karp continued: "Safe because it doesn't transfer your IP, or how to fight secret data, top secret data, or in a clinical context." Former AI czar speaks up in support of Karp's statements Former White House AI czar David Sacks posted a long post on X about why Karp is right. Sacks points to Figma being blindsided by Anthropic's launch of Claude Design, and adds that it isn't the only example. He wrote: "Anthropic has launched Claude Science, Claude Security, Claude Legal, and of course, Claude Code - each expanding into categories previously served by companies building on top of their models. The pattern is consistent: watch where value is being created, then move in directly. Dominate the model layer, then use that position to capture the most lucrative verticals." Apple's lawsuit now alleges that OpenAI was ready to do much more than that, and it should wake up many companies to rethink their approach to AI use. But if the allegations are proven to be correct, they will pretty much prove that Karp's other key points make sense, too. Technical limitations of LLMs make charging per token impractical OpenAI has gone from promising to cure cancer, replacing workers, and enabling people to prompt into existence billion-dollar businesses, to allegedly stealing trade secrets. The lawsuit presents another serious bump in the road for the company's IPO, on top of the previous one. By the previous one, I am referring to tech writer and prominent AI skeptic Ed Zitron publishing OpenAI's leaked audited financial statements. The data was verified by the Financial Times. This leak revealed an increase in OpenAI's net loss, from $5.09 billion in 2024 to $38.53 billion in 2025. Someone might defend this by saying, "What is wrong with charging for tokens? Everyone pays for electricity exactly how much they use it. No one is paying for the value of what you do with that power." However, that would be making a wrong comparison. When you get electricity, you use it to power things you get value from. Let's take, as an example, the simplest thing: a light bulb. It is absolutely easy to calculate how much that light bulb will cost you at the end of the month. It will also work predictably. The problem is that when you get "hallucinations" from AI, you still have to pay for them. You can never know how many tokens a prompt will end up burning, so you can never tell how much it will cost you. If electricity worked like LLM tokens, it would look very different. You would never know how much electricity you'll spend when you turn the light on. It would be totally random. Sometimes, keeping it on for an hour would cost you as much as keeping it on for a year. The light would sometimes be normal, sometimes it would start to work like a disco ball, sometimes it would produce just red light. Calling LLMs "artificial intelligence" is stretching the truth. The term hallucinations is also misleading; it "humanizes" LLMs and makes it sound like they are a bug that can be fixed. In a simplified view, LLMs are randomized algorithms, and what is termed a "hallucination" is perfectly normal functioning of said algorithm. The reason AI companies charge per token is that AI inference (processing tokens) is extremely expensive. These inherent issues have led to the end of the era of token-maxxing, with Tesla (TSLA) among the most recent companies to fold. According to The Telegraph, Elon Musk has set a $200-a-week limit on Tesla employees' AI spending. Both Karp's interview and the Apple lawsuit show that the industry is in crisis. If LLMs were really as valuable as their use costs, OpenAI and Anthropic would not be selling access to them but would be using them to solve real problems and make money from the solutions. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published July 13, 2026 at 7:33 PM.

Apple's AI struggle turns ugly as it sues OpenAI and io, the company founded by iPhone designer Jony Ive

For a moment back there, Apple and OpenAI's relationship was looking rosy. When Apple Intelligence was announced in 2024, the company said the improved Siri would be able to use ChatGPT for certain queries. This year, Apple has shifted away from OpenAI, instead integrating Google's Gemini model. And now, the relationship has soured dramatically. Apple has has accused OpenAI of stealing trade secrets. The Cupertino brand says that OpenAI hired at least two previous Apple employees who continued to access sensitive information whilst working for the AI company. What makes the claim more extraordinary is that Apple is also suing io Products, Inc, an OpenAI-owned company founded by Jony Ive. Ive famously designed several products during his storied tenure at Apple, including the original iPhone. Apple has described OpenAI's actions as a "pattern of theft at every level." As reported by Moneywise, Chang Liu, a senior system electrical engineer at Apple for eight years, moved to Apple in January. "He discovered a security bug let him still reach the company's confidential hardware files, and rather than report it, he exploited it and coached a colleague still inside Apple on how to copy materials without tripping the security team." He reportedly sent a message to that employee which read, "LOL, I found out I can access the [network storage], so funny." Ever since Ive moved to OpenAI, rumours have run rife about whether his next piece of hardware could prove to be the first bonafide iPhone killer. Time will tell if Apple should indeed be worried, but even before the battle begins, the relationship between Apple and OpenAI isn't looking great. And of course, Elon Musk has weighed in. The Tesla pedlar has very public beef with OpenAI after losing a lawsuit accusing the company of breaching its non-profit contract. "Scam Altman" strikes again, he said in response to news of the Apple lawsuit. Apple has had a rough ride when it comes to AI. The company's Apple Intelligence rollout turned into a parade of humiliation as the new Siri faced months, then years, of delays. And now, as it turns on OpenAI and Ive's io, things are turning ugly.

Apple Accuses OpenAI of Stealing Hardware Secrets in a New Lawsuit

The iPhone-maker says OpenAI used high-paying jobs as a lure to get applicants to reveal details of the hardware issued to them by Apple Just when we thought OpenAI's tryst with lawsuits might be coming to an end, it's now facing a new one. This time it is Apple alleging trade secret theft and breach of contract as a regular pattern from OpenAI employees who previously worked at Apple. What's worse, it says OpenAI's senior leadership including Chief Hardware Officer Tang Tan were directing this operation. In the lawsuit filed yesterday at the District Court of Northern District of California, Apple accuses Tan of using its confidential project code during OpenAI's recruiting process. It claims that Open's recruiting process involved asking job candidates to bring Apple hardware components to their interviews and coaching them later on how to evade the latter's security procedures. "This is the tip of the iceberg. Apple lacks visibility into what's been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leaderships. As a natural result, OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets." Readers would recall that before joining OpenAI, Tan had worked at Apple for about 24 years with his last appointment being VP of product design for the iPhone and Apple Watch. The lawsuit comes at the time when OpenAI is rumoured to be developing its first hardware product that could likely compete with the iPhone. The filing is available here in case you want to go through it. That Apple could be worried about such a device comes from a report filed by industry analyst and avid Apple watcher Ming-Chi Kuo who believes that OpenAI could be launching a smartphone that relies on AI agents instead of apps. Moreover, Altman had poached former lead designer Jony Ive from the iPhone-maker's rolls with his device also getting acquired in the process in what was reported to be a $6.5 billion deal. On May 21, 2025, Altman took to X to share: "OpenAI and Ive's collaboration puts one of Apple's former design heads -- famous for crafting many iPhones, iPods, iPads, and Apple Watches -- at the forefront of the newest technology wave, generative AI." However, this post seems to have disappeared as of this morning. Instead, we have a new post from OpenAI Communications team member Drew Pusateri which says: "Our statement in response to this suit: We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." In the actual compliant, Apple also claims that Chang Liu, who worked at Apple for eight years as a senior systems electrical engineer, also failed to return a laptop issued by the appellant before leaving for OpenAI in 2026 and may have used the computer to download confidential Apple technical documents. Liu was also accused of sharing Apple's data with other Apple employees applying for jobs at OpenAI. The company said they sent a letter to OpenAI in February over such concerns but received no response. Now it suggests that such behaviour from its former staffers was part of the AI lab's strategy to extract confidential information that includes asking job applicants to bring designs and prototypes to their interviews. The lawsuit claims that investigations into these activities revealed that OpenAI and its partners may have used Apple's confidential information to develop its own hardware product. The filing specifically points to a metal finishing technique that the ChatGPT-maker used after allegedly misleading a partner claiming it had procured Apple's permission for the use. Having detailed out its complaints, Apple now wants the court to bar OpenAI from using or disclosing its trade secrets, have them return any confidential Apple material and preserve evidence related to the case. In a prepared statement for the media, Apple said its teams are "constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. "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. We will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so," the statement read. And it is in response to this statement that OpenAI's Pusateri claimed that they have no interest in other companies' trade secrets and Altman's post from last year suddenly disappeared. Now, if you are a conspiracy theorist, you could claim that a certain Elon Musk could be involved in taking down that post through his ownership of X. But then conspiracy theories are malleable enough to suit each of our prejudices.

Apple sues OpenAI for stealing trade secrets - The Korea Times

SAN FRANCISCO -- Apple on Friday sued OpenAI, accusing the artificial intelligence company of orchestrating a campaign to steal the iPhone maker's trade secrets as it tries to develop its own consumer hardware device. The lawsuit -- filed in a federal court in San Jose, California -- paints a picture of an aggressive effort by OpenAI to poach Apple employees and extract confidential information to build its own device. The lawsuit marks a dramatic escalation in tensions between two companies that partnered in 2024 to integrate ChatGPT into Apple's products. That relationship has since deteriorated. Bloomberg reported in May that OpenAI was itself considering legal action against Apple, alleging the tech giant had failed to adequately promote the ChatGPT integration. "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. The suit will significantly complicate OpenAI's plans for a hotly anticipated initial public offering. The company, valued at roughly $852 billion, has raised more than $180 billion from investors, and expanding into consumer hardware was seen as a major opportunity for growth. "Significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes and products," the company said in a statement to AFP. "We will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so." OpenAI responded to AFP's request for comment with an emailed statement Friday. "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere," an OpenAI spokesperson said. The suit names OpenAI, its hardware subsidiary io Products -- the company co-founded by former Apple design chief Jony Ive -- and two former Apple employees: Tang Yew Tan, now OpenAI's chief hardware officer, and engineer Chang Liu. Apple said it was seeking damages and an injunction barring OpenAI from using its confidential information, calling the lawsuit necessary after OpenAI failed to respond to concerns the company raised in February. 'Show and tell' Tan spent 24 years at Apple, most recently as vice president of product design for the iPhone and Apple Watch, before co-founding io Products, which OpenAI acquired for roughly $6.5 billion in 2025. Apple alleged that Tan used confidential project code names during OpenAI job interviews to probe candidates about unreleased Apple products. According to the complaint, about 400 employees at OpenAI are former Apple staffers. Tan also allegedly told Apple employees to bring physical components, such as batteries, circuit boards, and other parts, to interviews for "show and tell" sessions. Apple described its findings as "the tip of the iceberg," saying it had limited visibility into what was happening behind OpenAI's closed doors. "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," the complaint said.

Apple Lawsuit Claims OpenAI is Developing AI Devices Using Stolen Tech | PYMNTS.com

The OpenAI employees named in the lawsuit, Chief Hardware Officer Tang Tan and technical staff member Chang Liu, are former Apple employees, the Wall Street Journal reported Friday (July 10). The suit alleges that Tan emailed himself information about Apple's suppliers and asked Apple employees to bring parts to OpenAI during job interviews, and that Liu downloaded confidential files from Apple's network and coached an Apple employee on how to copy confidential files, according to the report. Apple said in the suit that it doesn't know what OpenAI did with the information but alleged that "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," per the report. Neither Apple nor OpenAI immediately replied to PYMNTS' request for comment. In a statement provided to CNBC, an Apple representative said: "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." Reuters reported Friday that OpenAI currently employs more than 400 former Apple employees. The report also said that Apple said in its complaint that it wrote to OpenAI in February asking to discuss concerns about confidential information and received no reply. Bloomberg reported Friday that with its lawsuit, Apple is demanding that OpenAI stop the practices alleged in the suit, destroy any proprietary materials and redesign its upcoming products so that they don't use any Apple technology. PYMNTS reported in June 2024 that Apple and OpenAI partnered to incorporate OpenAI's ChatGPT language model into Apple's iOS, iPadOS and macOS platforms. In May 2025, OpenAI announced it was acquiring io, an AI device startup whose co-founders include Tan. In December, it was reported that dozens of employees had left Apple for OpenAI and Meta at a time when competitors are working to challenge the market share held by the iPhone and other parts of Apple's ecosystem, Apple is adjusting to the AI era, and new devices are being developed to make the most of that technology.

Apple vs OpenAI: 6 key 'trade secret' allegations explained

Apple has sued OpenAI, accusing the AI startup of stealing trade secrets and confidential information through current and former Apple employees to advance its own efforts to enter the consumer hardware market. The lawsuit primarily revolves around the alleged actions of three people: Tang Tan, OpenAI's Chief Hardware Officer: Tan previously served as vice president of Apple Watch. In 2024, he left the company to join Jony Ive's hardware company, io Products, which OpenAI acquired last year. Chang Liu, Member of Technical Staff at OpenAI: Liu worked as a systems electrical engineer on the iPhone for over eight years. Liu exited Apple in January 2026 to join OpenAI. Yu-Ting "Alyssa" Peng: A former Apple employee who joined OpenAI in April 2026. They are accused of taking Apple's trade secrets and confidential information, including unreleased product designs and components they were working on, to OpenAI, which is building its own AI hardware, expected to be launched next year. "Apple has uncovered a pattern of theft of Apple's trade secrets by OpenAI employees who were formerly at Apple," the complaint reads. Here are the key allegations in Apple's 41-page lawsuit against OpenAI. 1. OpenAI's hardware chief allegedly digs for confidential Apple projects during interviews: When a former Apple employee interviewed for a job at OpenAI, Tan asked him about a "top-secret project for an unreleased new Apple product". The lawsuit alleges Tan has been using Apple's internal information to solicit its trade secrets from job candidates. In another instance, Apple claims a former employee "began screenshotting and downloading files related to a highly confidential Apple project" before a job interview with OpenAI. Tan allegedly asked for more information about that same project during the interview. Last year, Tan allegedly admitted to receiving confidential information about AI hardware startup Iyo. 2. Former Apple employees are allegedly asked to bring hardware components and product samples for OpenAI job interviews: Aside from digging information about Apple's secret projects, Tan asked OpenAI job candidates to bring physical hardware components, "actual parts," and product samples from their Apple work to their interviews for "show and tell" sessions that would disclose Apple's proprietary technologies. For example, messages left on an Apple-issued work device show that Mr. Tan instructed an Apple employee to "bring some parts [she] worked on" such as "Batteries," "SIP" (Systems-in-Package), "mlb" (multi-layer or main logic boards), and "shields" and that it may "be good to show" other interviewers these Apple components. Additionally, OpenAI is accused of asking interviewees to prepare "Technical Deep Dive" presentations, with slides revealing confidential information from their work at Apple. 3. OpenAI allegedly "coached" recruits to evade Apple's security measures: Apple claims Tan improperly obtained an internal document titled "Need to Know" that describes employee offboarding procedures. The document details security processes Apple uses to protect the company's confidential information when one of its employees is leaving. OpenAI, which is heading for an IPO, allegedly disclosing this document to recruits before they notified Apple that they were leaving, providing them with advance notice of the company's forensic and security checks. "OpenAI has actively coached Apple employees on how to manage their exits from Apple in ways that avoid scrutiny," the complaint says. The lawsuit alleges that OpenAI also advised departing Apple employees not to disclose their next employer and also offered tips on how to avoid a "dreaded walk out," which would result in their immediate removal from the company, preventing them from accessing Apple's confidential information and trade secrets for another two weeks, as is the standard with Apple departures. OpenAI is accused of telling Apple employees not to "sign anything at the exit interview," and if they're asked to sign a document, to tell OpenAI "asap." In its lawsuit, Apple claims that OpenAI's alleged tactics "appear to be having their desired effect." Apple says it has noticed "a recent trend of employees who are leaving Apple for OpenAI and taking steps to evade security measures," including workers "failing to provide two-weeks notice," and "ignoring outreach by security personnel to schedule exit processes and security reviews." 4. Apple accuses OpenAI of stealing its metal-finishing technique: Apple claims OpenAI used its confidential information to approach its "trusted partners," including one that carries out a specific trade secret metal-finishing technique for its products. OpenAI allegedly misled Apple's partner, making the company believe that OpenAI had Apple's permission to use the metal-finishing technique. "Apple has not given OpenAI or io permission to use or a license to any of Apple's trade secrets or confidential information, including those it has entrusted with this partner," the iPhone maker said. Apple also accuses OpenAI of approaching "at least" one other supplier that works with Apple on manufacturing related to power and batteries. OpenAI allegedly used confidential information and internal codenames to ask "targeted questions" about Apple's components "that would be useful in furthering OpenAI's hardware ambitions." 5. Former Apple engineer kept company-owned laptop and continued to access confidential files: During his eight-year stint at Apple as a Senior System Electrical Engineer, Liu had access to some of Apple's most sensitive product development programs. After quitting Apple, he allegedly did not respond to requests to sign a confidentiality reminder, schedule an exit interview, or confirm that he returned company-owned devices, as is standard with departures at Apple. Instead, Apple claims Liu "failed to return" and Apple-issued work laptop and told a former colleague he still had "another computer" on which he planned to access Apple's confidential information. Liu also allegedly continued to access Apple's cloud-based network storage for weeks after departing without Apple's permission, exploiting a previously unknown authentication vulnerability. "Mr. Liu celebrated his find with Ms. Peng and set about exploiting it: 'LOL, I found out I can access the [network storage], so funny,'" Apple claims. "Ms. Peng's response was immediate: "'I'm ready.'" Among the files Liu downloaded is a presentation concerning the manufacture and testing of MLBs (multi-layer or main logic boards) -- complex circuit boards in Apple's hardware. The presentation details the manufacturing process, testing workflows, data captured during testing and how to interpret it, and more, with photographs and accompanying analyses. 6. Peng is accused of siphoning confidential Apple information to Liu: Liu's theft of dozens of confidential files and trade secrets from Apple's network is not his only offence, Apple claims. While he was working with OpenAI, Liu received frequent updates from Peng about Apple's projects, engineering details, and vendor relationships. "Ms. Peng and Mr. Liu would engage in depth about those confidential projects, while Mr. Liu was working on developing OpenAI's competing hardware," Apple claims. "Mr. Liu's work for OpenAI was informed by a steadily flowing stream of Apple's trade secret information from Ms. Peng." Apple also claims that Liu informed Peng on how to access and copy files from Apple's devices "to avoid trouble with the security team," while pointing her to "specific Apple project folders and proprietary engineering data." Peng departed Apple for OpenAI in April 2026. Apple wants access to evidence behind OpenAI's hardware: Apple is asking for damages (the amount will be determined at trial), but that is only one of its demands. The company is also seeking an injunction, restraining OpenAI from acquiring, possessing, using, or disclosing its alleged trade secrets and confidential information. It also wants OpenAI to return all copies of Apple's trade secrets currently in its possession and preserve evidence relevant to Apple's claims. "Preserved" means the defendants could be asked to retain relevant emails, messages, files, designs, access logs, and internal documents rather than deleting or destroying them while the lawsuit moves forward. Apple will also rely on the discovery process. Discovery is the pre-trial phase in a lawsuit where opposing parties exchange evidence, witness information and relevant information. Depending on what a judge allows, Apple could seek internal OpenAI communications, recruiting records, design documents, supplier correspondence, and information evidencing how the company built its AI hardware device. Apple's complaints come at a time when OpenAI is fighting lawsuits on multiple fronts, with allegations ranging from stealing trade secrets, copyright infringement and ChatGPT acting as a "suicide coach".

Apple Accuses OpenAI of Using Job Interviews to Extract its Hardware Secrets in New Lawsuit - Apple (NASD

Apple Inc. (NASDAQ:AAPL) sued OpenAI in federal court in Northern California on Friday, accusing the AI company of taking Apple's trade secrets to accelerate its own push into consumer devices. The complaint lands as publishers seek court sanctions against OpenAI in a separate Manhattan case tied to what they allege were misleading statements about tracking copyrighted material inside its systems. * Where is AAPL stock headed? Apple's filing, reported by CNBC, frames the dispute as a sharp break from the companies' 2024 collaboration that brought ChatGPT into the iPhone's software. That partnership has since cooled after OpenAI moved toward building hardware, including a $6.4 billion purchase of former Apple designer Jony Ive's startup, IO Products. For consumers and investors, both the Apple suit and the publishers' sanctions push raise the same practical stake: whether OpenAI can be forced by courts to preserve records and prove what data or know-how it used, which can drive damages, injunctions and product delays. Apple's court papers allege that OpenAI Chief Hardware Officer Tang Tan, previously an Apple vice president, steered recruiting conversations toward extracting confidential details from Apple employees who were interviewing. Tan is named as a defendant. Apple's Bold Legal Move Against OpenAI Apple also accuses OpenAI of encouraging departing Apple staff to sidestep internal security steps during their exits. The suit names Chang Liu, described as a former Apple employee who joined OpenAI, and alleges Liu took an Apple laptop. In its filing, Apple contends Tan asked candidates to bring physical Apple components to interviews for show-and-tell sessions aimed at pulling out additional nonpublic information. Apple says the effort extended beyond individuals to coordination with business partners. Apple further claims OpenAI asked outside hardware partners to use a metal-finishing method Apple says it created, while suggesting Apple had authorized that work. Apple is seeking damages and court orders that would bar OpenAI from using the alleged secrets and require it to stop. Meanwhile, OpenAI is also battling publishers led by The New York Times in federal court in Manhattan over allegations that its models were trained on journalism without permission. In that case, the publishers are asking the judge to sanction OpenAI, arguing it withheld datasets and ChatGPT usage records that they say are key to testing copyright claims. What Does This Lawsuit Mean For AI Ethics? The sanctions request points to accusations that OpenAI claimed it could not locate copyrighted material inside its systems, while testimony from an OpenAI employee is cited by publishers as suggesting searches were possible after all. The publishers also allege OpenAI compressed and deleted vast amounts of conversation logs while the dispute was underway. OpenAI has pushed back in that case, saying producing conversation records could expose user privacy. A spokesperson called the publishers' allegations false and said the company would keep defending user privacy and fair use principles. Apple's lawsuit adds another front to that same tension between evidence preservation and privacy, because Apple's claims focus heavily on how information moved through interviews, laptops, and supplier interactions. Apple did not say whether its legal action will change the existing arrangement that integrates ChatGPT into Apple Intelligence, according to CNBC. Apple's product roadmap has already shifted, with the company's next Siri upgrade slated for the fall, built on Google's Gemini models instead of ChatGPT. Apple's complaint also names IO Products, the startup OpenAI bought, as a defendant. This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Apple Sues OpenAI in Explosive AI Secrets Battle Over Future Hardware Plans

The case was filed in the US District Court for the Northern District of California. Apple claims OpenAI and two former employees used confidential company information without permission. According to the complaint, the information included product designs, manufacturing methods, supplier details, and internal business plans related to future hardware projects. Apple named former Vice President of Product Design Tang Tan and former Senior System Electrical Engineer Chang Liu as defendants. The company also owns OpenAI entities and io Products, the hardware startup that OpenAI acquired. Apple says the alleged actions helped OpenAI move faster in building new hardware products without spending the same time on research and development. The complaint claims Liu kept an Apple-issued laptop after leaving the company. Apple also says he later accessed Apple's internal network through a security issue and downloaded confidential hardware files. Apple further alleges Tan sent supplier information and internal reports to himself before leaving the company. The lawsuit also claims he encouraged job candidates to bring Apple components to interviews at OpenAI. believes these actions formed part of a larger effort to collect confidential business information. The company also claims some OpenAI employees contacted Apple's suppliers for private production details. In one example, Apple says a supplier shared a secret metal finishing process after believing OpenAI had permission to use it. OpenAI has denied the allegations. The company said it has no interest in using another company's trade secrets and plans to defend itself in court. At this stage, the court has not ruled on the case, and the claims remain allegations. Apple and OpenAI previously worked together when Apple added to iPhones, iPads, and Macs in 2024 through Apple Intelligence. Since then, both companies have expanded their own AI strategies, increasing competition in the fast-growing AI market.

Apple files lawsuit accusing ChatGPT maker OpenAI of stealing trade secrets

Apple on Friday accused OpenAI of stealing trade secrets as it seeks to build its own hardware for ChatGPT, a major rupture in a partnership between the iPhone maker and the artificial intelligence company. Apple said in the lawsuit filed in a California federal court that the theft of its trade secrets was part of a "coordinated pattern of misconduct at an institutional level" by OpenAI. "This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," the filing says. "Apple brings this suit to put a stop to it." Two former Apple employees who now work for OpenAI are also named as defendants. One is Tang Tan, who helped design the iPhone, Apple Watch and iPod and is now OpenAI's chief hardware officer. The other is Chang Liu, a former electrical engineer Apple says it entrusted with some of its most sensitive product development efforts before Liu left Apple to join OpenAI earlier this year. OpenAI did not immediately respond to requests for comment. OpenAI has never said exactly what type of device it is building but has described it as an effort to find a new way of interacting with AI that goes beyond "traditional products and interfaces." It's part of a broader push to create a physical embodiment of the latest AI advances, a decade after Amazon and Google introduced screen-free talking speakers into homes. The lawsuit claims the effort was built partly on knowledge stolen from Apple.

Apple sues over 40 former OpenAI employees in trade secrets lawsuit

OpenAI denies the allegations and says there is no supporting evidence. Apple had reportedly sent legal letters to its former employees who now work at OpenAI. The company is asking its recipients to keep emails, messages, and other records preserved, as they can be used as evidence in court as the legal fight between the two AI giants drags on. The iPhone maker claims OpenAI gained access to its confidential hardware and product development information by hiring several of its former engineers. OpenAI has denied the allegations, saying it has not seen any evidence to support Apple's claims. Here's everything you need to know about the recent legal letter Apple sent to its former employees working at OpenAI. Apple takes legal action According to Financial Times, Apple has sent legal preservation letters to around 40 of its former employees who are now working at the Sam Altman-led artificial intelligence company OpenAI. With the legal letters, the Cupertino tech giant had asked its former employees to keep all the documents, emails, messages, and other communications preserved that could be important to the trade secret lawsuit as it moves forward. This is not something new, as such letters are commonly used to ensure that potential evidence is not deleted or lost before legal proceedings continue. Also read: Running out of data? Vi's new InstaData feature gives 1GB instantly at a cost, but there is a catch Apple alleges Last week Apple filed a lawsuit against OpenAI, accusing the AI company of benefiting from confidential information linked to its hardware engineering and product development efforts after they hired aggressively from Apple. The company claims that the alleged misuse of trade secrets was not limited to a few isolated incidents. Tang Tan, the current OpenAI Chief Hardware Officer, and Chang Liu, who is also currently working on the hardware team of OpenAI, are the major names included in the lawsuit by Apple. Tang Tan worked at Apple for 24 years and helped design many of its products while Chang Liu worked at Apple as a senior system electrical engineer. Apple alleges that OpenAI recruited key engineers and gained access to proprietary designs, manufacturing processes, and other confidential information. Also read: Buying an air purifier? Here are 3 things to look for OpenAI rejects the claims OpenAI recently shared a statement with Bloomberg where the company has denied all allegations from Apple. The company said, 'They are not aware of any evidence that this complaint has merit.' Apple's lawsuit also states that more than 400 former Apple employees are now working at OpenAI. The company argues that the evidence uncovered so far may represent only the beginning of a much larger issue. Apple is asking for an injunction that will force OpenAI to stop using any information provided by Apple in developing their AI hardware device. Moreover, Apple is asking for compensatory and punitive damages, and it has already sued Tang Tan and Chang Liu for breaching their employment agreements. This case will definitely be going on, and both sides will have their preparations for trial.

OpenAI says Apple lawsuit lacks evidence as report reveals email mix-up twist

Apple alleges former executives shared confidential hardware information to aid OpenAI's AI device ambitions. Apple's lawsuit with OpenAI over an alleged trade secret theft has taken yet another turn. A new report claimed that the communication between the two companies broke down because of an email mix-up. As per an NBC News report, Apple's attempt to engage with OpenAI over the allegations ended after one of its lawyers reportedly contacted the wrong employee. The report stated that Apple had reached out to OpenAI in February asking discussions over concerns that former Apple employees had taken confidential hardware information to support OpenAI's device ambitions. While Apple's lawsuit states that OpenAI has never responded to those concerns, NBC News claims the AI company did reply. However, the exchange reportedly stalled after Apple's legal team confused the identities and email addresses of two OpenAI employees who shared the surnames Wang and Chang. The lawsuit is based on Apple's allegation that OpenAI benefited from confidential information brought by former Apple engineers now working on AI hardware projects. Apple claims that the information may have accelerated OpenAI's effort to make consumer devices including the AI powered hardware expected to debut in coming years. Also read: BGMI 4.5 update will bring Naruto theme and Shinobi powers: All you need to know OpenAI has denied any wrongdoing and maintains that the lawsuit lacks evidence. In a statement cited by Bloomberg, the company stated that it takes the allegations seriously but is unaware of any proof supporting Apple's claims. It also defended the right of employees to change jobs, saying competition should not be restricted by where people choose to work. Apple has named former executive Tang Yew Tan and former senior engineer Chang Liu among the defendants. According to the complaint, Liu allegedly retained a company laptop and later accessed Apple's internal systems to download confidential hardware files. Apple also accuses Tang, now leading OpenAI's hardware efforts, of sending himself supplier information and internal industry documents before leaving the company. The complaint also argues that OpenAI hardware division has relied on former Apple talent, noting that hundreds of ex-Apple employees now work at the AI company. Apple insists that hiring former employees does not grant OpenAI the right to use confidential information in developing competing products. The case also names io Products, the AI hardware startup acquired by OpenAI last year, as a defendant, though its co-founder Jony Ive has not been personally named in the lawsuit.

Apple and OpenAI's breakup to lawsuit: What went wrong in their partnership?

Exactly two years back, Apple provided OpenAI the most precious piece of property that the consumer technology landscape offered: direct access to Siri and iOS. Last week, it accused the very same partner of stealing in a federal court of law. One of the messiest divorces in recent tech history between Apple and OpenAI has been brewing for some time now. Also read: AI has a hidden cost, warns Satya Nadella: What does he mean by that? WWDC 2024 During the WWDC 2024 event, Apple revealed that it was incorporating ChatGPT into its iOS, iPadOS, and macOS products, with Siri utilizing OpenAI's systems for inquiries that it could not answer on its own. Craig Federighi showcased some use cases such as creating bedtime stories, and Sam Altman made an update on X, saying that he is "very happy to be partnering with Apple." Apple incorporated privacy protocols where the user needed to give consent before their inquiry could be submitted to ChatGPT, IP addresses would be hidden, and the requests would not be stored. It was distribution on a massive scale for OpenAI; it was a temporary solution for Apple as it worked on its AI products. Cracks appear The collaboration was never going to be an equitable one, however, and signs of the discord appeared very early. It was alleged that OpenAI counted on new users signing up and subscribing through the Apple collaboration, but this never came to fruition. OpenAI allegedly felt that Apple failed to promote ChatGPT by hiding it away within complicated Siri prompts rather than giving it more exposure. According to Bloomberg, the company was exploring legal action against Apple for failing to sufficiently integrate and promote its product in May 2026. However, as Apple was planning its exit route from the collaboration all along, it negotiated with Google to use its Gemini models instead of OpenAI's in the development of the next version of Siri, something truly rare for two competing AI companies. Also read: Meta keeps launching AI features that assume consent: Why it keeps backfiring The hardware pivot What truly caused the rift was OpenAI's pursuit of making its own devices. In 2025, OpenAI purchased Io products, the mysterious device maker, founded by former Apple design chief Jony Ive, for a reported $6.5 billion. Tang Tan, 24-year Apple veteran who worked on product design of both the iPhone and the Apple Watch, came onboard as OpenAI's chief hardware officer. The target is to make an AI-powered device to rival even the iPhone, set to come out some time in 2026. But there was something else that caught Apple's attention, over 400 ex-Apple employees were working at OpenAI in the past few years. From tension to trade secrets Apple filed a lawsuit on July 10 against OpenAI, Tan, io Products, and their former employee Chang Liu in the Northern District of California, accusing them of being involved in a concerted effort to pilfer Apple's trade secrets. The charges are detailed, and frankly, rather embarrassing for OpenAI. Tan is accused of having used the code names that were used at Apple internally when recruiting, and telling prospective employees to bring "actual parts", including batteries, logic boards, SIPs to interview sessions for "show and tell". Chang Liu, according to Apple, retained an Apple laptop despite quitting, and took advantage of a vulnerability in the storage system in order to access confidential documents, which he boasted about in a message sent to a former colleague. It claims that it had written a letter to OpenAI back in February about these concerns and did not receive any reply at all. Now, the tech giant wants compensation, an injunction, and an order to prohibit OpenAI from misusing its trade secrets precisely at the time when the company is rushing towards the launch of a new hardware product and an initial public offering (IPO). So far, the only response from OpenAI is: "We have no interest in other companies' trade secrets." Interestingly, although io is a defendant, Ive himself is not. This is not just another conflict between two different vendors. It is Apple looking at one of its partners transforming into a competitor in the very category of devices it dominates for more than two decades, and OpenAI trying to launch its hardware brand based on the people who are mostly educated in Cupertino. The end of the partnership between Apple and OpenAI, with ChatGPT in Siri, has come anyway.

Apple accuses OpenAI of stealing trade secrets, ChatGPT maker responds

Apple further claims OpenAI coached departing employees on how to handle their exits. Apple has filed a lawsuit against OpenAI, accusing the ChatGPT maker of stealing its trade secrets. In its complaint, the tech giant claims that OpenAI encouraged Apple employees to share information, components, drawings and other confidential materials related to upcoming products. This legal battle marks a major turn in the relationship between the two companies. For those unaware, Apple and OpenAI have worked closely in recent years on AI features. However, tensions have reportedly been increased as OpenAI expands into hardware and hires former Apple employees. Keep reading for the details. What Apple alleges in lawsuit against OpenAI In the complaint, Apple claims OpenAI carried out a coordinated effort to obtain confidential information about upcoming products. According to the lawsuit, more than 400 former Apple employees now work at OpenAI, reports Bloomberg. "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," the iPhone maker said in the lawsuit. "As a natural result, 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 has even named OpenAI's chief hardware officer Tang Tan in the case. The tech giant alleges that Tan encouraged Apple employees to discuss unreleased products during job interviews. Tan previously served as Apple's vice president of product design. He worked on major products including the iPhone, Apple Watch and AirPods. Also read: OpenAI accused of misleading court over ChatGPT data in lawsuit filed by publishers: Here is what we know Apple has also named former iPhone hardware engineer Chang Liu in the lawsuit. Liu joined OpenAI in January. Apple claims he accessed and downloaded dozens of its confidential hardware files for OpenAI. "Over several weeks, while developing hardware for OpenAI, Mr. Liu surreptitiously accessed and downloaded dozens of Apple's confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications and proprietary project data," according to the lawsuit. Apple further claims OpenAI coached departing employees on how to handle their exits. According to the lawsuit, employees were advised not to reveal their next employer. Apple says this allowed them to keep access to confidential information for longer. The iPhone maker wants OpenAI to stop these alleged practices and destroy any Apple-owned confidential material. It also wants OpenAI to redesign upcoming products if they use Apple's proprietary technology. Also read: OpenAI introduces ChatGPT Work, an AI agent powered by GPT 5.6 and Codex: Here is what it can do How OpenAI responded OpenAI has denied having any interest in Apple's trade secrets. Following the lawsuit, OpenAI Director of Strategic Communications Drew Pusateri shared the company's response on X. "Our statement in response to this suit: We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere," Pusateri wrote. Well, I was also hoping OpenAI CEO Sam Altman would have something to say about the lawsuit. However, at the time of writing, he has not publicly commented on the matter.