Apple sues OpenAI over alleged trade secret theft

Apple filed a federal lawsuit on Friday against OpenAI, two former Apple employees, and io Products, accusing the AI company of a "pattern of theft" of confidential product information. The legal action targets Chang Liu, a former senior electrical engineer, and Tang Yew Tan, a 24-year Apple veteran who now serves as OpenAI's chief hardware officer. Apple claims these individuals emailed themselves internal documents before leaving the company.

The lawsuit alleges OpenAI deployed a deliberate strategy to extract Apple's proprietary manufacturing techniques and details of unreleased products. During job interviews, OpenAI staff allegedly instructed prospective Apple hires to "bring 'actual parts' as 'props' from Apple for 'show and tell'". Apple said it tried to raise these concerns with OpenAI in February but was ultimately ignored.

Also named in the complaint is io Products, the design startup founded by longtime Apple executive Jony Ive that OpenAI acquired last year. Apple accused all the defendants of acting "in concert and as an enterprise, exploiting Apple's confidential information to advance OpenAI's efforts to enter the consumer hardware market".

OpenAI is preparing to launch its first hardware device, an AI-integrated keyboard, later this month. The company is also planning to become a publicly traded company. Apple argued in its filing that because OpenAI's "misconduct is normalized and exemplified by leadership," its "nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."

The dispute marks a dramatic collapse in relations between two major American tech firms, a shift with significant implications for global markets. Outgoing Apple CEO Tim Cook previously integrated ChatGPT into Apple devices, but Apple shifted more of those features to Google's Gemini model this year. For investors, the lawsuit introduces substantial legal uncertainty just as OpenAI prepares for its public listing.

Drew Pusateri, a spokesman for OpenAI, said the company is reviewing the complaint. "We have no interest in other companies' trade secrets," Pusateri said, adding that OpenAI is "focused on building innovative technology that empowers people everywhere." An Apple spokesman said the lawsuit was the result of "significant evidence." Apple is asking the court to immediately prohibit OpenAI from using the alleged confidential information and is seeking unspecified monetary damages.