Apple Sues OpenAI Over Trade Secrets
Apple has sued OpenAI in a California federal court, accusing the ChatGPT maker of orchestrating a systematic effort to acquire confidential information about Apple's unreleased hardware through former employees, on Friday.From Collaboration to Courtroom
The legal action marks a dramatic deterioration in relations between two companies that only two years ago announced a partnership to integrate ChatGPT into Apple devices. The dispute underscores how the race to build AI-native hardware is intensifying beyond software, with talent, intellectual property and supply-chain expertise emerging as key competitive battlegrounds.
Apple Alleges Trade Secret Misuse
The lawsuit names OpenAI, Chief Hardware Officer Tang Tan, former Apple engineer Chang Liu, and hardware startup io Products, alleging that proprietary designs, engineering processes and supplier information were misappropriated to accelerate OpenAI's consumer hardware ambitions. OpenAI has denied the allegations.
Apple further claims that OpenAI's hardware programme benefited from confidential knowledge relating to unreleased products, manufacturing techniques and supplier relationships. The lawsuit also names io Products, the startup co-founded by former Apple design chief Jony Ive and Tang Tan that OpenAI acquired to strengthen its hardware push. Although Jony Ive has not been named as a defendant, Apple argues the startup became part of the alleged misuse of its intellectual property after its integration with OpenAI.
OpenAI Pushes Back
OpenAI rejected the accusations, saying it has "no interest in other companies' trade secrets" and remains focused on developing innovative technology. The company said it is reviewing Apple's complaint and will defend itself in court. Apple is seeking damages, the return of confidential materials, and a court order preventing OpenAI and the other defendants from using or disclosing its trade secrets.
The lawsuit adds a new dimension to competition in the AI industry, where companies are racing to develop next-generation consumer devices alongside advanced AI models. The case will now proceed through the US court system, with its outcome likely to shape the legal boundaries around talent mobility and the protection of trade secrets in the fast-evolving AI hardware market.
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