Apple has filed a lawsuit against OpenAI, accusing the ChatGPT maker of stealing confidential trade secrets to fuel its push into consumer hardware. According to Reuters, the suit was filed Friday in federal court in Northern California (San Jose) and names OpenAI plus two former Apple employees, alleging misappropriation of trade secrets and breach of contract.
The complaint describes what CNBC reports Apple calls a scheme operating "at every level" of OpenAI. According to Wired, Apple claims OpenAI encouraged poached employees to bring over confidential presentations, secret prototypes, and key supplier details, and Fox Business reports Apple accuses OpenAI of telling recruits to bring Apple prototypes to their interviews. Per Bloomberg's Mark Gurman, Apple says OpenAI recruited more than 400 former Apple employees, including an iPhone engineer, identified in reports as Chang Liu, who allegedly downloaded confidential hardware files before leaving. CNBC reports Apple also names Tang Tan, OpenAI's chief hardware officer and a former Apple vice president, as directing staffers interviewing at OpenAI to share Apple secrets. Engadget notes the suit also names io Products, the hardware venture led by Jony Ive.
TechCrunch reports Apple's filing says OpenAI leadership "normalized" misconduct and that its hardware business is "rotten to its core by its illegal reliance" on stolen secrets. According to the Financial Express, OpenAI denies the claims. The clash is notable because, as CNBC reports, the two companies struck a high-profile partnership in 2024 to integrate ChatGPT into the iPhone's operating system.
The suit also drew in Elon Musk, who co-founded OpenAI in 2015 before leaving. Per NDTV, Musk said Sam Altman "takes scamming to a whole new level," and Altman shot back that Musk is "obsessed" with him. Separately, Times Now reports OpenAI safety chief Johannes Heidecke exited amid a leadership reshuffle.
Why it matters: The case pits the world's most valuable company against the most prominent AI startup, and its outcome could shape how freely talent and know-how move between tech giants racing to build the next generation of AI hardware.