Apple Sues OpenAI Over Alleged Trade Secret Theft
Apple Inc has filed a lawsuit in the US Federal Court in San Jose, California, alleging that OpenAI has carried out an aggressive operation to poach hundreds of its employees and steal confidential information in order to build artificial intelligence (AI) hardware.
The legal move marks the peak of escalating tension between the two technology giants, who in 2024 had collaborated to integrate ChatGPT into Apple’s product ecosystem.
“At every level, from technical staff to the Chief Hardware Officer, OpenAI systematically coordinated with their business partners to steal Apple’s trade secrets and confidential information,” read the 41-page filing, submitted on Friday (10 July) local time.
The case is expected to weigh on OpenAI’s grand plans as the company prepares for an initial public offering (IPO) on the stock exchange. OpenAI, which now commands a valuation of some $852 billion, had previously targeted the consumer hardware sector as a new growth engine for its business.
In its filing, Apple specifically targets io Products, OpenAI’s hardware subsidiary co-founded by Apple’s former iconic design chief Jony Ive, along with two former senior Apple figures: Tang Yew Tan (now OpenAI’s Chief Hardware Officer) and an engineer named Chang Liu.
Tang Yew Tan, who served 24 years at Apple as Vice President of Product Design for the iPhone and Apple Watch, is accused of using confidential project code names when interviewing job applicants. Internal documents reveal that at least 400 former Apple staff have defected and now work under OpenAI’s banner.
Furthermore, Tan is alleged to have instructed Apple engineers intending to leave to bring unreleased physical prototype components—such as specialist battery cells, circuit boards, and original spare parts—into interview rooms for secret show-and-tell sessions.
Apple insists these findings are merely “the tip of the iceberg” of OpenAI’s industrial espionage practices. The company is now seeking substantial material damages and asking the judge to issue an injunction to block any use of the illicit technology altogether.
“OpenAI’s fledgling hardware business stands on a very fragile and corrosive foundation, because it was illegally built on the plunder of other parties’ trade secrets,” Apple’s management declared in its official press release. As of this report, OpenAI has remained silent and has yet to issue an official response regarding the lawsuit.