Apple sues OpenAI over claims of stolen product secrets

Former employees passed confidential information to OpenAI, it says

Apple has filed a lawsuit against OpenAI, accusing the AI company of systematically acquiring confidential information from former Apple employees to accelerate the development of its own hardware products.

The complaint [pdf], lodged in the US District Court for the Northern District of California, alleges that OpenAI recruited Apple staff and encouraged them to disclose sensitive product designs, engineering processes and other proprietary information linked to unreleased technologies.

Apple said evidence had emerged suggesting OpenAI employees had "wrongfully taken" confidential information relating to products and technologies still under development.

The legal dispute signals a sharp reversal in the relationship between the two companies that only two years ago announced a high-profile partnership to bring ChatGPT to Apple's devices. More recently, however, Apple unveiled a revamped version of Siri powered by Google's Gemini AI model rather than OpenAI's technology, fuelling speculation that the relationship had cooled.

OpenAI said it was reviewing the allegations.

"We have no interest in other companies' trade secrets," company spokesperson Drew Pusateri said.

"We remain focused on building innovative technology that empowers people everywhere."

Former Apple executives named

Apple's complaint identifies several former employees who later joined OpenAI, alleging they improperly retained or obtained confidential company material.

Among those named is Tang Yew Tan, OpenAI's chief hardware officer and a former Apple vice-president who spent more than two decades at the iPhone maker.

Apple says Mr Tan took confidential supplier information with him after leaving the company and encouraged job candidates still employed by Apple to bring physical components to interviews so they could be examined by OpenAI engineers.

Another former employee, Chang Liu, is accused of keeping an Apple laptop after departing the company and exploiting an authentication flaw to access Apple's internal systems.

According to the lawsuit, he allegedly downloaded dozens of confidential hardware-related files before joining OpenAI.

Apple also claims OpenAI and one of its partners used a proprietary metal-finishing technique developed by Apple after allegedly misleading a supplier into believing they had permission to do so.

Hardware ambitions under scrutiny

The allegations come as OpenAI is widely expected to enter the consumer hardware market. Industry analysts have suggested the company is developing an AI-focused device that could eventually compete with smartphones by relying more heavily on AI agents than conventional mobile applications.

Last year, OpenAI strengthened its hardware ambitions by acquiring io Products, the startup founded by former Apple design chief Jony Ive, in a deal worth $6.4bn. The startup has also been named as a defendant in Apple's lawsuit.

Apple argues that any hardware products emerging from OpenAI's efforts have been built using unlawfully acquired intellectual property.

"This is the tip of the iceberg," the company said in its court filing, alleging it has limited visibility into the full extent of the alleged misconduct.

Apple is seeking financial damages, court orders preventing OpenAI from using any disputed trade secrets and injunctions designed to stop further misuse of its confidential information.

The case adds to a growing list of legal challenges facing OpenAI as the company prepares for a widely anticipated stock market listing.

The lawsuit follows a recent courtroom victory for OpenAI in a separate dispute with Elon Musk, who accused the company of abandoning its original non-profit mission.

A federal jury rejected Mr Musk's claims, although Musk has said he intends to appeal.

Apple said protecting its intellectual property remained essential to developing new products.