Apple files lawsuit alleging OpenAI stole hardware trade secrets

Apple filed a lawsuit against OpenAI and two former employees in a California federal court on Friday, accusing the artificial intelligence company of misappropriating hardware trade secrets to support its consumer electronics ambitions. The legal action alleges that confidential corporate information, encompassing specific product designs, internal manufacturing processes, and global supply chain strategies, was improperly obtained and deployed by the competitor. The formal complaint marks a significant escalation in industry tensions between the two technology firms, which previously partnered in 2024 to integrate ChatGPT features directly into Apple devices.

Reuters reported that the filing specifically names former employees Chang Liu and Tang Yew Tan alongside the OpenAI Foundation, OpenAI Group PBC, and io Products. The plaintiff claims that Liu failed to return an official corporate laptop upon his departure and subsequently accessed the internal network of the firm to download dozens of confidential hardware-related files. The corporation further alleges that Tan emailed himself highly sensitive information regarding current component suppliers and proprietary industry reports before leaving his role.

According to the filed court documents, Tan actively encouraged various job candidates to bring physical Apple components to their scheduled OpenAI job interviews to conduct "show and tell" sessions. The plaintiff noted that more than 400 of its former staff members are now employed by the artificial intelligence firm. However, the legal counsel argued that the employment of individuals who were once entrusted with confidential data does not entitle the rival organisation to utilise that information to jumpstart its hardware trade secrets efforts. Apple is seeking legal remedies to protect its intellectual property and halt the unauthorised use of its manufacturing strategies.