Apple has accused OpenAI of running a hardware business "rotten to its core", built on a "pattern of theft" of confidential information — a stunning reversal for two companies that announced a major partnership only last year.
In a federal lawsuit filed on Friday, Apple sued OpenAI, two of its employees, and io Products, the design startup founded by former Apple design guru Jony Ive which OpenAI acquired for $6.4bn. The suit alleges that former Apple employees took trade secrets with them when they joined the AI company, including sensitive project details, manufacturing techniques, and supply chain information.
“Apple sues OpenAI and former employees, alleging theft of trade secrets for hardware push.”
Tang Yew Tan, now OpenAI's chief hardware officer after 24 years at Apple, is accused of emailing himself supply chain information and directing job candidates still at Apple to bring "actual parts" to interviews for "show and tell" sessions. Chang Liu, a former senior electrical engineer, allegedly exploited a rare authentication bug to access Apple's internal network and downloaded dozens of confidential files, then left without returning his work laptop or attending an exit interview.
Apple claims OpenAI coached departing employees on how to avoid scrutiny and prolong their access. The suit also alleges that OpenAI used Apple's confidential information to approach Apple's trusted partners, misleading one into carrying out a specific metal-finishing technique under the belief Apple had authorised it.
"Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes and products," an Apple spokesperson said.
Drew Pusateri, a spokesman for OpenAI, told the BBC the company was reviewing the complaint. "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."
The lawsuit marks a sharp turn from the 2024 partnership that integrated ChatGPT into iPhones and iPads. Tensions simmered after Apple shifted AI features to Google's Gemini model, and OpenAI's $6.4bn acquisition of io Products signalled its entry into hardware.
Apple alleges the misappropriation is "the tip of the iceberg" and that further investigation would reveal more abuse of its intellectual property. OpenAI has yet to respond substantively to the allegations.
