Apple has filed a lawsuit against OpenAI and two former Apple employees, alleging that the company used its confidential hardware information to support OpenAI’s consumer hardware business. The lawsuit, filed in a California federal court, marks a major escalation in the growing competition between the two companies.
Apple has taken legal action against OpenAI, filing a lawsuit in the U.S. District Court for the Northern District of California against OpenAI Foundation, OpenAI Group PBC, io Products, former Apple Vice President of Product Design Tang Yew Tan, and former Apple engineer Chang Liu.
According to the complaint, Apple alleges that OpenAI benefited from its confidential hardware designs, manufacturing processes, and supplier-related information to accelerate the development of its consumer hardware products.
The filing alleges that Chang Liu kept a company-issued laptop after leaving Apple and later used an authentication flaw to access Apple’s internal network. Apple claims he downloaded dozens of confidential hardware-related files.
Apple also alleges that Tang Yew Tan emailed himself information related to Apple suppliers and internal industry summaries before leaving the company. The lawsuit further claims that he encouraged Apple employees interviewing at OpenAI to bring Apple hardware parts to interviews for “show and tell” sessions.
Apple said it raised these concerns with OpenAI in February and asked to discuss the matter, but the company claims it did not receive a response.
In response, OpenAI said, “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
Apple’s complaint also states that more than 400 former Apple employees now work at OpenAI. The company said that while employees are free to join other companies, that does not give OpenAI the right to use Apple’s confidential information or trade secrets.
The lawsuit comes as OpenAI continues to expand its hardware business after acquiring io Products, the startup founded by former Apple designer Jony Ive, in a $6.5 billion deal last year. Although Ive founded the company, he is not named as a defendant in the lawsuit.
Apple and OpenAI have worked together in the past. In 2024, Apple integrated ChatGPT into Apple Intelligence and Siri, allowing users to access OpenAI’s chatbot on Apple devices. However, the latest lawsuit highlights growing tensions between the two companies as they compete more directly in the AI and consumer hardware market.
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