Apple sues OpenAI over alleged trade secret theft

Apple filed a lawsuit Friday against OpenAI alleging trade secret theft and breach of contract. The case was filed in the U.S. District Court for the Northern District of California. Apple claims the alleged misconduct shows a pattern involving OpenAI employees who previously worked at Apple, and says it was directed by OpenAI senior leadership, including Chief Hardware Officer Tang Tan.

Apple alleges Tan used Apple confidential project code names during OpenAI recruiting, asked candidates to bring Apple hardware components to interviews, coached departing Apple employees on avoiding security procedures, and sought details about unannounced products. Tan spent 24 years at Apple and most recently served as VP of product design for the iPhone and Apple Watch. Apple also alleges Chang Liu, a former senior systems electrical engineer at Apple, failed to return an Apple-issued laptop and used it to download confidential technical documents.

The allegations arrive as OpenAI is rumored to be developing its first hardware product, which TechCrunch says would likely compete with the iPhone. The article notes that analyst Ming-Chi Kuo suggested in April that the device could be a smartphone relying on AI agents instead of apps. Apple’s filing also names io, the device startup from former Apple lead designer Jony Ive that OpenAI acquired last year in a $6.5 billion deal, though Ive was not named in the filing.

Apple is asking the court to bar OpenAI from using or disclosing its trade secrets, require the return of confidential Apple materials, and preserve evidence related to the case. Apple said protecting its teams’ work and intellectual property is something it takes very seriously. OpenAI responded after publication by pointing to a public statement on X saying it has “no interest in other companies’ trade secrets” and remains focused on building innovative technology.