Apple Sues OpenAI Over Alleged Trade Secret Theft

Apple has filed a lawsuit against OpenAI alleging the artificial intelligence company systematically stole trade secrets related to unreleased hardware technologies, according to a court filing made public Friday.

The suit claims OpenAI recruited Apple employees and encouraged them to share confidential product designs, supplier information, and proprietary processes as the AI company builds its own hardware division. The legal action marks a dramatic reversal in the relationship between two tech giants that announced a major partnership just two years ago.

The allegations

Apple's complaint centers on several former employees who joined OpenAI and allegedly brought sensitive company information with them. Tang Yew Tan, now OpenAI's chief hardware officer and previously a vice president at Apple, is specifically named in the suit.

According to the filing, Tan took information about Apple's supplier relationships to OpenAI and allegedly instructed job candidates still employed at Apple to bring "actual parts" from the company to interviews for "show and tell" sessions designed to extract additional confidential details.

The lawsuit also names Chang Liu, another former Apple employee, who allegedly took an Apple laptop when departing and used an authentication vulnerability to access the company's internal network, downloading dozens of confidential hardware files.

"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 wrote in its complaint.

From partnership to courtroom

The lawsuit represents a sharp turn from the companies' 2024 partnership, which integrated OpenAI's ChatGPT into operating systems for iPhones, iPads, and Macs. However, when Apple unveiled its revamped Siri assistant last month, the AI component relied on Google's Gemini model rather than ChatGPT.

Tensions reportedly escalated last year when OpenAI spent $6.4 billion to acquire io Products, a hardware startup founded by former Apple design chief Jony Ive. That acquisition signaled OpenAI's serious intent to compete in hardware, a core business for Apple. Ive's company is also named as a defendant in the suit.

Drew Pusateri, an OpenAI spokesperson, said the company was reviewing the filing and stated: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."

Why it matters

This lawsuit illustrates how quickly AI partnerships can dissolve when competitive interests collide. As AI companies expand beyond software into hardware—a natural evolution for firms seeking to optimize AI performance through custom chips and devices—they increasingly threaten established technology manufacturers. The case also highlights growing concerns about employee mobility and trade secret protection in an industry where talent frequently moves between competitors, often carrying institutional knowledge that companies consider proprietary.

Apple is seeking both financial damages and a court order preventing OpenAI from possessing or using its trade secrets. The Guardian first reported details of the lawsuit.