Apple Sues OpenAI Alleging Trade Secret Theft

Apple filed a lawsuit against OpenAI in federal court in Northern California on Friday, alleging that the artificial intelligence firm stole trade secrets. The iPhone maker claims OpenAI used its intellectual property 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 stated in its legal filing.

The lawsuit represents a significant reversal for the two companies, which entered into a high-profile partnership in 2024. That year, OpenAI's ChatGPT was integrated into the iPhone's operating system, a move announced by OpenAI CEO Sam Altman at Apple's headquarters.

However, relations reportedly soured after OpenAI announced plans last year to enter the hardware industry. This move included the acquisition of IO Products, a startup founded by former Apple design chief Jony Ive, for $6.4 billion.

Much of Apple's allegations concern former employees who have either interviewed with or joined OpenAI. Apple claims that OpenAI's chief hardware officer, Tang Tan, a former Apple vice president, instructed job candidates to share Apple secrets during interviews. Tan is named as a defendant in the suit.

Apple is seeking damages, injunctions, and an order to compel OpenAI to stop using its trade secrets. The company also stated it believes OpenAI is instructing hardware firms to use a metal finishing technique developed by Apple, while misleading partners into believing they have Apple’s permission.