Sounding off: OpenAI has spent years developing an as-yet-unrevealed hardware platform for its generative AI technology with help from former Apple engineers. On Friday, however, Cupertino filed a lawsuit against Sam Altman’s company, accusing it of building its entire hardware project on confidential information stolen from Apple.
Apple has sued OpenAI for allegedly stealing its trade secrets to develop an AI-focused device and other hardware. Apple alleges that as over 400 former employees left to join the ChatGPT maker, many of them routinely accessed Apple’s confidential data related to unreleased products.
The lawsuit, filed in the US District Court for the Northern District of California, primarily targets Chang Liu and Tang Tan, who were senior Apple employees before joining OpenAI’s hardware efforts. Apple accused them of masterminding a pattern of hiring Apple employees who brought trade secrets with them.
Liu was an Apple senior electrical engineer for eight years before joining OpenAI in January, while Tan helped design the iPod, iPhone, and Apple Watch during his time at Apple. Tan left Cupertino in 2024 to co-found hardware startup io alongside fellow Apple design veteran Jony Ive – a company OpenAI later acquired.
The engineers have reportedly been designing a screenless device that leverages OpenAI’s technology to assist users by constantly recording visual and audio data and responding in context. Altman has said the product does not aim to replace smartphones, just as smartphones did not replace laptops. OpenAI is also said to be developing a smartphone that primarily runs AI apps, which might not emerge until 2028.
In a statement to 9to5Mac, Apple claimed to have significant evidence that OpenAI employees used their old Apple credentials to access the company’s networks and copy confidential files.
When recruiting former Apple employees, Liu and Tan also allegedly instructed them on how to extract files and devices from Cupertino while avoiding security measures. Liu reportedly celebrated the exploit in messages to a former colleague, suggesting he knew exactly what he was doing.
Apple also accused OpenAI of tricking its partners into divulging trade secrets by leading them to believe it had the company’s approval. For example, it allegedly misled one of Apple’s third-party partners into revealing details of a metal-finishing technique it performs for Cupertino. OpenAI is also said to have gathered information from Apple partners related to power, batteries, and other components.
Apple brought its accusations to OpenAI’s attention in February but received no response. The iPhone maker is seeking injunctive relief and damages.
OpenAI, for its part, began preparing possible legal action against Apple in May, after an agreement to leverage ChatGPT to enhance Siri failed to deliver the results it expected. Apple’s lawsuit states that its complaint does not involve that collaboration.