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Apple sues OpenAI over alleged theft of iPhone trade secrets

The iPhone maker claims OpenAI obtained confidential information through former employees to develop its own hardware products.

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Apple has sued OpenAI, alleging the company used confidential iPhone information to develop competing hardware

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  • Apple has sued OpenAI, alleging trade secret theft linked to its hardware development.
  • The lawsuit claims former Apple employees shared confidential information after joining OpenAI.
  • Apple is seeking damages and a court order preventing OpenAI from using the alleged trade secrets.

Apple has filed a lawsuit against OpenAI, accusing its former artificial intelligence partner of misappropriating confidential iPhone technology and trade secrets to accelerate the development of its own consumer hardware.

The Apple OpenAI lawsuit, filed in federal court in Northern California, marks a dramatic shift in the relationship between the two companies, which only two years ago partnered to bring ChatGPT to Apple's devices. Apple now alleges that OpenAI recruited former employees and encouraged them to disclose confidential information about unreleased products, manufacturing techniques and internal processes.


OpenAI has not publicly responded to the allegations in court.

From partnership to legal battle

The relationship between the companies began to cool after OpenAI acquired former Apple designer Jony Ive's startup, IO Products, in a $6.4 billion deal last year as part of its expansion into AI-powered hardware.

Apple's latest version of Siri is also set to use Google's Gemini models instead of ChatGPT, further distancing the companies.

According to the court filing, Apple alleges that Tang Tan, its former vice-president who now serves as OpenAI's Chief Hardware Officer, encouraged Apple employees interviewing for jobs at OpenAI to bring "actual parts" from Apple so they could discuss confidential technologies during interviews.

The lawsuit also names former Apple employee Chang Liu, alleging he stole an Apple laptop before joining OpenAI. Apple further claims departing employees were coached on how to avoid the company's security checks when leaving.

Apple also alleges that OpenAI has asked manufacturing partners to use a metal-finishing process developed by Apple while misleading those suppliers into believing permission had been granted.

What Apple wants from the court

In a statement, Apple reportedly said recent evidence suggested individuals working for OpenAI had wrongfully taken confidential information relating to unreleased technologies, products and internal processes.

The lawsuit names IO Products as a defendant alongside OpenAI and several individuals.

Apple is seeking financial damages, court injunctions and an order preventing OpenAI from using any trade secrets that the company alleges were improperly obtained.

The case is particularly significant because the two companies were publicly seen as strategic partners following the launch of Apple Intelligence in 2024, when ChatGPT became integrated into Apple's ecosystem. The lawsuit now signals a sharp deterioration in that relationship as both companies compete more directly in the rapidly growing AI hardware market.

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