Apple accuses OpenAI of stealing confidential product secrets in lawsuit

Apple filed a federal lawsuit against OpenAI, two former Apple employees and AI hardware startup io Products, alleging they orchestrated a scheme to steal confidential company information to accelerate OpenAI's consumer hardware ambitions.

The lawsuit, filed on Friday, claims OpenAI engaged in "a pattern of theft" by recruiting Apple employees with access to sensitive projects and using confidential information to advance its own hardware development.

OpenAI denied the allegations, with spokesperson Drew Pusateri saying the company has "no interest in other companies' trade secrets" and is reviewing Apple's complaint.

Apple accuses former employees of taking confidential information

Apple alleges that former employees Chang Liu and Tang Yew Tan emailed themselves internal company information before leaving to join OpenAI-linked projects.

Tan, who spent 24 years at Apple and served as a vice president of iPhone and Apple Watch design, is now OpenAI's chief hardware officer. Liu previously worked as a senior electrical engineer at Apple for eight years.

The lawsuit also names io Products, the hardware startup founded by former Apple design chief Jony Ive, which OpenAI acquired last year.

According to Apple, the former employees had access to sensitive product plans, manufacturing techniques, supplier relationships and unreleased devices.

Lawsuit targets OpenAI's hardware ambitions

Apple claims OpenAI sought to obtain confidential information not only through former employees but also during recruitment interviews with current Apple staff.

The company alleges OpenAI interviewers encouraged candidates to bring "actual parts" from Apple as "props" for "show and tell" during interviews.

Apple argues the alleged conduct was part of a broader effort to strengthen OpenAI's entry into the consumer hardware market.

The lawsuit seeks an immediate court order preventing OpenAI from obtaining or using Apple's alleged trade secrets, along with unspecified monetary damages.

The legal action marks a dramatic shift in relations between the two companies, which previously collaborated to bring ChatGPT features to Apple devices. Apple has since expanded its AI strategy by integrating more features powered by Google's Gemini models.