Apple Sues OpenAI Alleging Trade Secret Theft

Apple filed a civil lawsuit Friday in the Northern District of California accusing OpenAI of misappropriating trade secrets to advance its hardware development. The complaint names OpenAI Chief Hardware Officer Tang Tan and technical staffer Chang Liu, both former Apple employees. It also names io Products, the hardware startup OpenAI acquired last year.

Apple alleges Tan and Liu downloaded confidential files on unreleased products, engineering presentations, and supplier data after leaving the company. The suit claims Liu accessed more than a thousand pages of internal documents using a retained laptop.

The complaint states that OpenAI interviewers encouraged departing Apple employees to bring physical parts as interview props and advised them on avoiding standard exit procedures.

“This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI. Apple brings this suit to put a stop to it." Apple describes the conduct as "the tip of the iceberg" and states that OpenAI's hardware efforts are "rotten to its core" due to reliance on misappropriated information. The company first contacted OpenAI in February with concerns but received no response.”

The two companies entered into a high-profile partnership in 2024 when ChatGPT was integrated into the iPhone's operating system. The suit notes the Siri/ChatGPT partnership is not at issue. More than 400 former Apple employees now work at OpenAI, according to the suit. The suit targets Tan and Liu for breach of contract but does not name Jony Ive or Sam Altman.

Apple seeks an injunction barring use or disclosure of the information, plus damages. OpenAI said it is reviewing the complaint and has no interest in other companies' trade secrets.