Apple Sues OpenAI Alleging Trade Secret Theft In Blockbuster AI Hardware Case

Apple has filed a major lawsuit in the U.S. District Court for the Northern District of California accusing OpenAI, io Products, and former Apple executives of misappropriating trade secrets to fast-track AI hardware development.

The complaint details a months-long scheme involving former Apple employees now at OpenAI. Key defendants include Tang Tan (OpenAI hardware lead and ex-Apple VP of product design) and Chang Liu (former Apple senior electrical engineer). Apple alleges they directed recruits to share confidential details on unreleased devices, components, manufacturing processes, and suppliers.

Specific claims, according to the WSJ, include Tan instructing interviewees to bring physical Apple hardware parts for review, retaining and distributing an internal Apple “Need to Know” departure security document, and using stolen supplier information to trick partners into using proprietary techniques. Liu is accused of downloading over a thousand pages of confidential files post-departure via a retained laptop and maintaining improper contacts at Apple for ongoing updates. (MacRumors)

“This case is about Apple’s former employees stealing Apple’s trade secrets for the benefit of OpenAI. Apple brings this suit to put a stop to it.”

Apple describes the conduct as “the tip of the iceberg” and states that OpenAI’s hardware efforts are “rotten to its core” due to reliance on misappropriated information. The company first contacted OpenAI in February with concerns but received no response. (9to5Mac)

In a response to inquiry by MacRumors, Apple said: 

“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 seeks an injunction barring use or disclosure of the information, plus damages. The suit targets Tan and Liu for breach of contract but does not name Jony Ive or Sam Altman. It notes the Siri/ChatGPT partnership is not at issue and highlights that over 400 ex-Apple employees now work at OpenAI. 

This development occurs amid previously reported tensions, with OpenAI reportedly considering its own legal action against Apple over integration expectations. OpenAI is advancing hardware projects, including potential devices tied to its acquisition of Ive’s io startup.