On Friday, Apple filed a federal lawsuit accusing OpenAI of orchestrating a “pattern of theft” by poaching its employees and coaxing them to hand over confidential product designs and other tightly held information. The suit marks a dramatic reversal for two tech giants that announced a major partnership just two years ago, and it raises fresh questions about how companies protect their trade secrets in the hypercompetitive AI industry.
Apple’s lawsuit names OpenAI, two of its employees, and io Products — a hardware startup founded by former Apple design chief Jony Ive that OpenAI acquired last year. Apple claims that at least two long-time Apple workers who left to join OpenAI emailed themselves internal Apple information and, in one case, took a company laptop. The company further alleges that OpenAI interviewers have told prospective hires still employed by Apple to bring “actual parts” from Apple to interviews as “props” for “show and tell” sessions. An Apple spokesperson said “significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information.” OpenAI spokesperson Drew Pusateri responded that the company “has no interest in other companies’ trade secrets” and is focused on “building innovative technology that empowers people everywhere.”
“Apple sues OpenAI for allegedly stealing trade secrets through poached employees.”
To understand the lawsuit, it helps to know the history between the two companies. In 2024, Apple and OpenAI announced a partnership that integrated OpenAI’s ChatGPT chatbot into the operating systems of iPhones, iPads and Macs. Apple’s then-CEO Tim Cook had added ChatGPT to Apple devices as the company looked to offer more AI features. But tensions began to simmer last year when OpenAI spent $6.4bn to acquire io Products, a hardware startup founded by Jony Ive — the designer of the iPhone and Apple Watch. That acquisition signalled that OpenAI was foraying into consumer hardware, directly competing with Apple. At the same time, Apple shifted more of its AI features to run on Google’s Gemini model and tools. The partnership that once seemed symbiotic had turned adversarial.
For UK readers, this case matters because it highlights the growing legal and competitive tensions around trade secrets in the tech sector — an issue that affects British companies as much as American ones. The UK’s own tech industry relies heavily on confidential information, from product blueprints to manufacturing techniques, and the ease with which employees can move between firms makes protecting secrets both crucial and difficult. The outcome of this lawsuit could set a precedent for how aggressively companies can pursue former employees and their new employers for alleged theft, influencing hiring practices and non-disclosure agreements across the pond.
Q: What exactly is a trade secret? A trade secret is any confidential business information that gives a company a competitive edge — for example, product designs, manufacturing processes, supplier lists, or unreleased technology. In this lawsuit, Apple alleges that OpenAI obtained trade secrets related to its “unreleased technologies, processes, and products.”
Q: Why is Apple suing OpenAI now? Apple claims that OpenAI has engaged in a “strategy to extract Apple’s confidential information” through the hiring of former Apple employees. The suit specifically names Tang Yew Tan, OpenAI’s chief hardware officer and a former Apple vice-president of design, and Chang Liu, a former Apple senior electrical engineer. Apple alleges that Tan encouraged job candidates still at Apple to bring “actual parts” to interviews, and that Liu took an Apple laptop and exploited a network bug to download more data.
Q: What was the relationship between Apple and OpenAI before this lawsuit? In 2024, the two companies announced a major partnership that integrated OpenAI’s ChatGPT into Apple devices. However, tensions grew when OpenAI acquired io Products, a hardware startup founded by former Apple design chief Jony Ive, indicating that OpenAI was entering the hardware market. Apple has since moved its AI features to rely on Google’s Gemini model instead of ChatGPT.
What happens next is uncertain. OpenAI says it is reviewing the complaint, while Apple maintains it has “significant evidence.” The lawsuit will now proceed through the United States federal court system, and both sides have indicated they are prepared for a legal fight. For UK readers watching from afar, the case serves as a reminder that in the race to dominate AI and hardware, even the closest partners can quickly become bitter rivals.
