Apple files lawsuit accusing ChatGPT maker OpenAI of stealing trade secrets

Apple initiated legal action on Friday against OpenAI in a California federal court, alleging a calculated and systemic theft of trade secrets. This development marks a definitive rupture in the professional relationship between the two entities, which had previously collaborated to integrate ChatGPT functionality into Apple's consumer software offerings.

The complaint asserts that OpenAI’s expansion into physical hardware is built upon a foundation of misappropriated intellectual property. Apple alleges that the theft of trade secrets was not restricted to isolated incidents but was part of a coordinated pattern of misconduct at an institutional level. According to Apple, the company identified this pattern after initiating an internal investigation into the security of its confidential information.

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Central to the lawsuit are two former Apple employees now employed at OpenAI. One defendant, Tang Tan, previously held a role designing the iPhone, Apple Watch, and iPod, and currently serves as OpenAI’s chief hardware officer. The second defendant, Chang Liu, is a former electrical engineer whom Apple claims was entrusted with sensitive product development details before his departure earlier this year. Apple’s filing alleges that Liu accessed internal systems and downloaded confidential hardware files using a company-issued device he retained after leaving. Furthermore, the suit claims Tan instructed job applicants from Apple to bring proprietary components and design artifacts to interviews at OpenAI for demonstration purposes.

The litigation also names io Products—the hardware startup founded by former Apple designer Jony Ive, which was acquired by OpenAI—as a defendant. While OpenAI has not explicitly detailed the nature of its upcoming hardware, the company has described the project as a method for interacting with technology that moves beyond traditional interfaces. This effort remains a priority for the firm, despite recent internal moves to streamline other business ventures. In April, OpenAI CFO Sarah Friar indicated that the firm expects its consumer hardware to arrive toward the end of this year.

Allegations and Responses

Apple’s complaint outlines several specific methods by which it believes its intellectual property was compromised:

• The unauthorized access of internal networks through authentication bugs by former staff.
• The use of alternative messaging platforms to communicate during the transition period to avoid detection by security teams, including allegations that Liu suggested using Line Messenger.
• The soliciting of proprietary manufacturing processes from shared industry suppliers, including an instance where a supplier reportedly performed a secret metal-finishing technique for OpenAI under the belief that the AI company possessed Apple’s authorization.

An Apple spokesperson stated,

"At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products. We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so."

Apple Spokesperson, via The Verge

In response, OpenAI spokesperson Drew Pusateri provided a statement regarding the allegations:

"We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere."

Drew Pusateri, Spokesperson, via AP News

Context and Future Outlook

The relationship between the two companies has evolved significantly since they formed a partnership in 2024. At the time, Apple sought to supplement its internal technology, such as Siri, with the capabilities of ChatGPT to meet user demands. However, the dynamics have shifted toward direct competition as both firms prioritize the development of hardware to house their respective digital advancements. Apple claims that more than 400 former employees now work at OpenAI, and argues that the mere employment of these individuals does not entitle the firm to use proprietary knowledge to jumpstart its own hardware efforts.

Apple claims it attempted to address these concerns directly with OpenAI in February, alleging that the company failed to provide a response. This silence, coupled with the ongoing development of OpenAI’s consumer device, has led Apple to pursue injunctive relief and damages in court to prevent the further use of its proprietary information. The legal action also demands the return or destruction of any confidential Apple materials still in the defendants’ possession. As the case proceeds, it may impact OpenAI's broader business strategy, as the firm has reportedly been exploring a move to go public on Wall Street while facing heightened competition from rivals such as Google and Anthropic.