Apple has filed a lawsuit against artificial intelligence company OpenAI and two former senior employees, accusing them of trade secret theft. The complaint, filed Friday in California federal court, alleges that Apple's confidential information, including product designs, manufacturing processes, and supply chain strategies, was systematically obtained.
The lawsuit names former senior system electrical engineer Chang Liu and former vice president of iPhone and Apple Watch product design Tang Yew Tan as defendants. Apple alleges that Liu failed to return his company-issued computer and later exploited an authentication vulnerability to access Apple's internal network and download 'dozens of confidential hardware files.'
Tan, who became OpenAI's hardware chief, is said to have sent information about Apple suppliers and internal industry summaries to his personal email address before leaving, 'methodically using Apple's confidential information for the benefit of OpenAI.'
The complaint also details an incident where Tan asked Apple employees to bring parts from the office during job interviews, and a job candidate said, 'I didn't know we could take these from the office.'
Apple's filing notes that more than 400 former Apple employees now work at OpenAI, stating that 'OpenAI's employment of individuals who were once entrusted with Apple's trade secrets does not give it the right to use that information to accelerate its hardware efforts.'
Supplier secrets also used
Apple also alleges that OpenAI employees sought confidential information from the company's suppliers. At one point, a supplier, believing it had Apple's permission, used a proprietary metal finishing technique for OpenAI.
OpenAI's hardware ambitions
OpenAI acquired the hardware startup io Products, founded by former Apple designer Jony Ive, for $6.5 billion last year. The artificial intelligence company plans to develop a new physical device for ChatGPT that goes beyond traditional products. Ive is not named in the lawsuit.
Tensions between the two tech giants have risen as the race for AI products intensifies the competition for talent and proprietary technology. Apple stated that it sent a letter to OpenAI in February expressing concerns that its confidential information had leaked to OpenAI, but received no response.
A source close to the matter told Reuters in May that OpenAI was considering legal options, including a breach of contract notice against Apple, but might not pursue a full-scale lawsuit.
Apple announced in 2024 that it had integrated its Apple Intelligence technology into apps including Siri and brought OpenAI's chatbot ChatGPT to its devices. The partnership allows users to access ChatGPT responses via Siri; iPhone users can also start a ChatGPT subscription directly from iOS settings. Apple released the delayed Siri update last month.
