Apple Sues OpenAI Alleging Theft of Trade Secrets

Apple has initiated legal action against OpenAI and its head of hardware, Tang Tan, accusing them of misappropriating trade secrets. The lawsuit, filed in San Jose federal court, alleges that Tan, a 24-year Apple veteran who led iPhone product design, encouraged departing Apple employees to take confidential designs, unreleased parts, and documents concerning stealth projects.

According to the filing, "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 asserts that OpenAI resorted to "unlawful shortcuts" under pressure to deliver its first commercial hardware product. OpenAI and Tan did not immediately respond to requests for comment.

This legal battle highlights increasing competition in the AI hardware market. While Apple and OpenAI partnered in 2024 to integrate ChatGPT into Apple devices, recent years have seen increased rivalry, with Apple reportedly relying more on Google's Gemini AI. Executives from OpenAI, including Tan, were previously involved with the startup io Products, which Apple alleges was built on stolen intellectual property.

Apple claims its investigation uncovered evidence from employee devices and communications, confirming that former employees, including an engineer named Chang Liu, downloaded confidential hardware files and shared them with OpenAI. The company states it first approached OpenAI with concerns in February but received no satisfactory response, leading to the lawsuit.