Apple Takes OpenAI to Court Over Alleged Trade Secret Theft in AI Hardware Race
Apple Takes
The growing rivalry between Apple and OpenAI has entered a new phase after the iPhone maker filed a sweeping lawsuit accusing the artificial intelligence company of systematically misappropriating confidential information to accelerate its consumer hardware ambitions.
According to the complaint, filed before the U.S. District Court for the Northern District of California, Apple alleges that OpenAI orchestrated an organized effort to obtain proprietary information related to unreleased products, hardware engineering, manufacturing processes and supply-chain strategies by recruiting Apple employees and exploiting confidential internal knowledge.
Apple describes the alleged conduct as «a coordinated pattern of misconduct at an institutional level», arguing that the practices went far beyond isolated incidents and reflected a broader strategy to strengthen OpenAI's expanding hardware business.
Among those named in the lawsuit are Tang Yew Tan, Apple's former Vice President of Product Design for iPhone and Apple Watch who now serves as OpenAI's Chief Hardware Officer, and Chang Liu, a former Apple senior systems electrical engineer who joined OpenAI earlier this year. Apple also named io Products, the hardware startup now affiliated with OpenAI, as a defendant.
The lawsuit alleges that Tang Yew Tan encouraged Apple employees being recruited by OpenAI to disclose confidential information during interviews and, in some cases, to bring physical Apple components for so-called «show-and-tell» discussions. Apple claims the interviews were used to gather sensitive technical knowledge rather than simply assess candidates.
Apple also accuses Chang Liu of exploiting a software vulnerability that allegedly allowed him to retain access to internal company systems after leaving the company. According to the complaint, he downloaded confidential engineering documents and failed to return company-issued equipment before joining OpenAI.
The legal filing further claims that OpenAI actively recruited hundreds of former Apple employees as it expanded its hardware division, arguing that the company's hiring strategy was accompanied by efforts to obtain commercially sensitive information about Apple's future products and technologies.
OpenAI has strongly rejected the allegations. In a statement, a company spokesperson said OpenAI has «no interest in other companies' trade secrets» and remains focused on developing innovative technologies that benefit users worldwide.
The lawsuit marks a dramatic escalation in tensions between the two companies, whose relationship has shifted from strategic collaboration to direct competition. Apple and OpenAI previously worked together to integrate ChatGPT into Apple's ecosystem, but both companies are now pursuing increasingly ambitious AI hardware strategies.
Apple is seeking financial damages as well as court orders to prevent any further use or disclosure of its alleged trade secrets, setting the stage for what could become one of the technology industry's most closely watched legal battles over artificial intelligence and next-generation consumer devices.