Apple has filed a lawsuit against OpenAI in federal court in Northern California, alleging the artificial intelligence firm has stolen trade secrets to develop its consumer hardware. The iPhone maker claims that OpenAI, through its employees and business partners, has pilfered confidential information and intellectual property crucial to its own product development.
This legal action marks a dramatic turn for two companies that had forged a significant partnership in 2024, culminating in the integration of ChatGPT into Apple’s operating system. The initial announcement saw OpenAI CEO Sam Altman visiting Apple’s headquarters, signaling a period of collaboration.
However, the relationship has soured considerably since OpenAI’s announcement last year of its intentions to enter the hardware market. This strategic shift included the acquisition of IO Products, the startup founded by former Apple designer Jony Ive, for a reported $6.4 billion. This move appears to have been a key catalyst, as Apple’s own upcoming iteration of its Siri assistant will be powered by Google’s Gemini AI models, rather than OpenAI’s technology.
At the heart of Apple’s allegations are former employees who have either interviewed with or joined OpenAI. The lawsuit specifically names Tang Tan, OpenAI’s head of hardware and a former Apple vice president, who is accused of soliciting trade secrets from current Apple employees during the interview process. Apple’s filing asserts that Tan “directed job candidates still working for Apple to bring ‘actual parts’ from Apple to their interviews for ‘show and tell’ sessions.”
Further accusations include claims that OpenAI coached departing Apple employees on circumventing security protocols and that Chang Liu, a former Apple employee now with OpenAI, allegedly absconded with an Apple laptop. The lawsuit also alleges that OpenAI is instructing hardware firms to utilize a metal finishing technique invented by Apple, while allegedly misleading these partners into believing they have Apple’s authorization.
“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 representative stated.
OpenAI, in its defense, issued a statement saying, “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.” IO Products is also listed as a defendant in the suit.
While OpenAI has yet to reveal details or a launch date for its hardware products, Sam Altman indicated in November that initial prototypes had been completed. Apple has remained tight-lipped on whether this lawsuit will impact its existing partnership with OpenAI, which includes the integration of ChatGPT into Apple Intelligence.
The legal challenges come at a critical juncture for OpenAI, which is reportedly preparing for a significant initial public offering. This lawsuit is the latest in a series of high-profile legal battles for the AI company. Notably, just two months prior, OpenAI emerged victorious in a lawsuit against Tesla and SpaceX CEO Elon Musk. A federal jury ruled that Musk had waited too long to file his suit, which alleged that OpenAI had deviated from its original nonprofit mission. Musk has indicated his intention to appeal that verdict.
Apple is seeking monetary damages, injunctions, and a court order to compel OpenAI to cease the use of its proprietary information.
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