Apple has filed a lawsuit against OpenAI, alleging the theft of trade secrets for the development of hardware for ChatGPT, marking a significant break in the partnership between the two companies. The legal action, lodged in a California federal court, accuses OpenAI of a systematic pattern of misconduct at an organizational level in misappropriating Apple’s proprietary information.
The lawsuit targets two former Apple employees, Tang Tan and Chang Liu, who are now employed by OpenAI. Tan, a key figure in the design of Apple products like the iPhone and Apple Watch, currently serves as OpenAI’s chief hardware officer. Liu, a former Apple electrical engineer entrusted with sensitive product development projects, joined OpenAI earlier this year.
In response to the allegations, OpenAI stated that it is reviewing the lawsuit and emphasized its focus on technological innovation that benefits global communities while disavowing any interest in exploiting other companies’ trade secrets.
Although OpenAI has not disclosed specific details about its hardware project, the endeavor aims to revolutionize AI interaction beyond conventional interfaces. Apple’s legal complaint asserts that OpenAI’s hardware initiatives were founded on stolen knowledge from Apple, characterizing the foundation of OpenAI’s hardware business as compromised by illicit reliance on misappropriated trade secrets.
Apple’s investigation uncovered a series of alleged theft incidents involving former employees accessing and downloading confidential company data while transitioning to roles at OpenAI. The lawsuit claims that Liu retained and accessed confidential hardware files post-departure, and Tan purportedly instructed job candidates to bring Apple components to OpenAI interviews.
Apple reportedly reached out to OpenAI early in its investigation to address concerns, but OpenAI allegedly did not respond. The tech giant emphasized its commitment to safeguarding its intellectual property and innovations.
The partnership between Apple and OpenAI, established in 2024 to integrate ChatGPT into the iPhone ecosystem, has shifted towards a competitive dynamic. OpenAI’s recent recruitment of former Apple designer Jony Ive to spearhead an AI-powered device project has raised speculation about potential market rivalry with Apple.
OpenAI’s acquisition of io Products, co-founded by Ive, Tan, and others, for nearly $6.5 billion USD, prompted legal disputes with a tech startup and allegations of trademark infringement and trade secret theft. Apple’s lawsuit also names io Products as a defendant, with legal representatives for the firm and Tan yet to comment.
As OpenAI faces escalating competition and evaluates the possibility of going public, the company continues its hardware pursuits alongside the core ChatGPT focus. OpenAI’s CFO anticipates the release of consumer hardware by the end of the year, signaling ongoing developments amid the legal and competitive landscape.