Apple takes OpenAI to court over alleged hardware trade secret theft

Apple has filed a lawsuit against OpenAI and two former employees, accusing the artificial intelligence company of misappropriating trade secrets to support its hardware ambitions.

According to Reuters, the lawsuit was filed in a California federal court on Friday and alleges that confidential Apple information, including product designs, manufacturing processes and supply chain strategies, was improperly obtained and used.

The lawsuit names former Apple employees Chang Liu and Tang Yew Tan, as well as the OpenAI Foundation, OpenAI Group PBC and io Products.

Apple claims Liu failed to return a company laptop and later accessed Apple's internal network, downloading "dozens of Apple’s confidential hardware-related files".

The company also alleges Tan emailed himself confidential information about suppliers and industry reports before leaving Apple.

According to the filing, Tan encouraged job candidates to bring Apple components to OpenAI interviews for "show and tell" sessions.

Apple said more than 400 former employees now work for OpenAI but argued that "That OpenAI now employs people who were once entrusted with Apple’s trade secrets does not entitle OpenAI to use that information to jumpstart its hardware efforts."

The legal action marks a significant escalation in tensions between the two companies, which partnered in 2024 to integrate ChatGPT into Apple's devices.