Apple Sues OpenAI, Claims Former Employees Took Confidential Hardware Secrets

Apple has sued OpenAI, alleging the AI company obtained confidential product information through former employees and used it to advance its hardware ambitions. OpenAI has denied the allegations, saying it has no interest in competitors' trade secrets and is reviewing the lawsuit.

Apple accuses OpenAI of trade secret theft in explosive federal lawsuit.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• Apple sues OpenAI, alleging misuse of confidential trade secrets.
• Former Apple executives allegedly emailed internal data before joining OpenAI.
• Apple claims OpenAI encouraged recruits to share confidential information.
• OpenAI denies allegations, states no interest in competitors' trade secrets.

Apple has filed a federal lawsuit against OpenAI, accusing the artificial intelligence company of obtaining confidential business information through former Apple employees. The legal complaint also names io Products, the hardware start-up acquired by OpenAI, along with two former Apple executives now working for the company. Apple alleges the defendants used confidential internal material to support OpenAI's hardware ambitions and claims the practice forms part of a broader pattern of misusing trade secrets. OpenAI has rejected the allegations, saying it has no interest in competitors' confidential information and is reviewing the complaint before responding further.

Apple Lawsuit Against OpenAI

Apple has accused OpenAI of building its consumer hardware business using confidential information obtained through former employees. According to the lawsuit, two long-serving Apple executives allegedly emailed internal company material to themselves before leaving to join OpenAI.

The complaint also names io Products, the hardware company founded by former Apple design chief Jony Ive and later acquired by OpenAI, as well as former Apple employees Chang Liu and Tang Yew Tan. Tan now serves as OpenAI's Chief Hardware Officer. Apple claims the defendants gained access to unreleased product plans, manufacturing processes, supplier relationships, and other commercially sensitive information during their time at the company.

Allegations And OpenAI's Response

According to Apple's filing, OpenAI encouraged current Apple employees during recruitment interviews to share confidential information. The company alleges that some interviewers even asked candidates to bring "actual parts" as "props" for "show and tell" during interviews. Responding to the allegations, OpenAI spokesperson Drew Pusateri told the BBC:

"We have no interest in other companies' trade secrets." He added that the company is reviewing Apple's complaint and remains "focused on building innovative technology that empowers people everywhere." An Apple spokesperson told the BBC that the lawsuit is backed by "significant evidence."

What Apple Wants From The Court

Apple argues that OpenAI's hardware programme has benefited from confidential company information and alleges the conduct reflects a wider organisational approach. The company has asked the court to stop OpenAI from obtaining or using any allegedly confidential Apple information. It is also seeking unspecified financial damages.

The lawsuit marks a sharp change in the relationship between the two technology companies. Apple previously integrated ChatGPT into its devices before later expanding its AI strategy with Google's Gemini-powered tools. Earlier this year, OpenAI Chief Executive Sam Altman publicly praised outgoing Apple CEO Tim Cook, calling him "a legend" and saying he was "very thankful for everything he has done."

The case is expected to draw significant attention across the technology industry as both companies expand their artificial intelligence and hardware ambitions. For now, the allegations remain before the court, and OpenAI has denied any wrongdoing while reviewing the legal complaint.