Tech Giants Clash: OpenAI is Sued by Apple Over Alleged Theft of Proprietary Trade Secrets
Tech giants clash as ChatGPT-maker OpenAI faces a major lawsuit from Apple over the alleged theft of proprietary trade secrets. Apple filed the suit in a California federal court, claiming OpenAI encouraged recruited Apple employees to share confidential information and guided them on how to avoid scrutiny. The legal filing explicitly states that former employees stole trade secrets to benefit OpenAI, forcing Apple to take legal action to stop the infringement.
The lawsuit names OpenAI, its hardware collaboration company io Products, and two former Apple employees as defendants. One defendant is Tang Tan, Apple’s former iPhone and Apple Watch designer who now serves as OpenAI’s chief hardware officer. The other is Chang Liu, a former electrical engineer entrusted with sensitive product development before leaving for OpenAI. Apple claims Liu downloaded confidential hardware files onto an Apple-issued device, while Tan allegedly directed job candidates to bring actual Apple parts to their OpenAI interviews. Apple previously raised these concerns to OpenAI in February but received no response.
This conflict erupts just as the 2024 partnership between the two companies, which integrated ChatGPT into the iPhone’s Siri system, veers into direct rivalry. OpenAI recruited legendary designer Jony Ive to oversee a secret hardware project aiming to build a physical AI device that goes beyond traditional interfaces. To support this, OpenAI acquired io Products in a deal valued at nearly 6.5 billion dollars. This hardware push already triggered a separate trademark and trade secret lawsuit from a tech startup named iyO Inc. against Ive, Tan, and OpenAI Chief Executive Officer Sam Altman.
OpenAI stands by its focus on building innovative technology, stating it has no interest in other companies’ trade secrets. However, Apple asserts that OpenAI seeks illegal shortcuts to build its consumer hardware. This high-profile legal battle hits OpenAI at a critical time, as the company explores going public on Wall Street while facing intense market competition from rivals like Anthropic and Google. OpenAI Chief Financial Officer Sarah Friar previously confirmed that consumer hardware will arrive toward the end of the year.