Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of recruiting its employees and obtaining confidential information to develop competing hardware products, marking a significant breakdown in a partnership that began less than two years ago.
According to the complaint, OpenAI personnel improperly acquired proprietary details about Apple’s unreleased technologies, including sensitive data on suppliers and internal processes. The filing alleges that OpenAI’s hardware division is built on stolen trade secrets, describing it as “rotten to its core.”
Tang Yew Tan, OpenAI’s head of hardware and a former Apple executive, is accused of retaining confidential supplier information and instructing job candidates to present proprietary Apple materials during interviews to extract further secrets. Another former Apple employee, Chang Liu, allegedly accessed and downloaded dozens of confidential files after leaving the company.
OpenAI has stated it is reviewing the legal filing and emphasized that it does not seek to use other companies’ trade secrets. The company reiterated its focus on developing technology to benefit users globally.
The lawsuit contrasts sharply with Apple’s decision in 2024 to integrate OpenAI’s ChatGPT into its operating systems. However, Apple’s recent Siri update utilized Google’s Gemini model instead, signaling a shift in their collaboration.
Tensions escalated after OpenAI acquired io Products, a hardware startup co-founded by former Apple design executive Jony Ive, for $6.4 billion. The case emerges as OpenAI prepares for a major stock market debut, complicating its public profile.
Apple seeks monetary damages and a court injunction to prevent OpenAI from using its trade secrets. The case underscores risks for businesses of all sizes, particularly in safeguarding proprietary information.
UK businesses face similar vulnerabilities, as trade secrets are legally protected only when companies demonstrate reasonable efforts to maintain confidentiality. Experts recommend limiting access to sensitive data, enforcing non-disclosure agreements, and establishing strict exit protocols to mitigate risks.
While legal battles will dominate headlines, proactive measures like confidentiality clauses and access controls offer more practical protection than reactive litigation for most organizations.
