Apple sues OpenAI over alleged trade secret theft as former employees face hardware IP claims

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 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.

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 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 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 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 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 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 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.

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.

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.

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 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.

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 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 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 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 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 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.

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 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.