Apple filed a lawsuit against OpenAI and two former employees on Friday in the U.S. District Court for the Northern District of California, alleging the ChatGPT maker used stolen trade secrets for its consumer hardware efforts. The complaint names former Apple senior system electrical engineer Chang Liu and former iPhone and Apple Watch design executive Tang Yew Tan, along with OpenAI Foundation, OpenAI Group PBC, and io Products. Apple alleges Liu, who left the company in January after eight years, accessed Apple's internal systems through an authentication bug and downloaded confidential hardware files, while Tan, who spent 24 years at Apple before becoming OpenAI's chief hardware officer, used confidential information from his time at Apple to benefit OpenAI. The lawsuit follows OpenAI's $6.4 billion acquisition of io Products, the hardware startup founded by former Apple designer Jony Ive, and comes after OpenAI's hardware division hired more than 400 former Apple employees.
Apple Files Lawsuit in California Federal Court
The complaint was filed Friday in the U.S. District Court for the Northern District of California. The named defendants include former Apple senior system electrical engineer Chang Liu, former iPhone and Apple Watch design executive Tang Yew Tan, OpenAI Foundation, OpenAI Group PBC, and io Products. Apple accuses OpenAI of using stolen trade secrets for its consumer hardware efforts.
Apple Alleges Liu Accessed Internal Systems via Authentication Bug
Apple alleges Liu, who left the company in January after eight years, failed to return a company laptop and later accessed Apple's internal systems through an authentication bug. According to Apple's attorneys, Liu exploited a rare, previously unknown authentication bug to access Apple's shared network folders while employed by OpenAI. Upon discovering that he had this unauthorized access to Apple's systems, Liu did not report it, return his stolen Apple-issued work laptop, or delete the program that allowed the access, the complaint states. Apple alleges Liu downloaded dozens of confidential hardware files, including information about unreleased products, engineering presentations, technical specifications, and proprietary project data.
Apple Claims Tan Used Confidential Project Information at OpenAI
Apple alleges Tan, who spent 24 years at Apple before becoming OpenAI's chief hardware officer, used confidential information from his time at Apple to benefit OpenAI. The complaint claims Tan used Apple's internal project names during OpenAI interviews and asked about unreleased products. Apple also alleges candidates were told to bring actual parts for show and tell.
OpenAI's Recruiting Process Requested Supplier Information and Prototypes
Apple claims OpenAI's recruiting process requested CAD/design artifacts, prototypes, supplier information, and details about employees' work on Apple hardware. The complaint details these requests as part of OpenAI's efforts to build its hardware division.
Apple Contacted OpenAI in February Without Response
Apple claims it contacted OpenAI in February with concerns about confidential information entering the company but did not receive a response. Apple and OpenAI did not immediately respond to a request for comment by Decrypt.
Lawsuit Follows OpenAI's $6.4 Billion Acquisition of io Products
The lawsuit follows OpenAI's $6.4 billion acquisition of io Products, the hardware startup founded by former Apple designer Jony Ive. Ive is not named in the complaint. According to the filing, OpenAI's hardware division has hired more than 400 former Apple employees.
Separate Trade Secret Dispute Between OpenAI and xAI
The news comes after a separate trade secret dispute between OpenAI and Elon Musk's xAI. In September, xAI sued OpenAI, alleging the ChatGPT maker recruited former employees to obtain confidential source code, training methods, and data center strategies. OpenAI denied the allegations, and a federal judge dismissed the lawsuit in June, finding xAI failed to show OpenAI encouraged a former employee to disclose confidential information.
Apple and OpenAI's Prior Partnership Shifted to Google Gemini
The lawsuit is a stark pivot from Apple and OpenAI's earlier relationship. In 2024, Apple tapped OpenAI to bring ChatGPT to Siri as part of its Apple Intelligence initiative. However, earlier this year, Apple turned to Google's Gemini to power its next generation of AI models after delays stalled the rollout.
FAQ
What did Apple accuse OpenAI of in the lawsuit filed Friday?
Apple accused OpenAI and two former employees of using stolen trade secrets for its consumer hardware efforts. The complaint alleges former Apple senior system electrical engineer Chang Liu accessed Apple's internal systems through an authentication bug and downloaded confidential hardware files, while former iPhone and Apple Watch design executive Tang Yew Tan used confidential information from his time at Apple to benefit OpenAI.
How many former Apple employees has OpenAI's hardware division hired?
According to the filing, OpenAI's hardware division has hired more than 400 former Apple employees. Apple claims it contacted OpenAI in February with concerns about confidential information entering the company but did not receive a response.
What was the prior relationship between Apple and OpenAI before this lawsuit?
In 2024, Apple tapped OpenAI to bring ChatGPT to Siri as part of its Apple Intelligence initiative. However, earlier this year, Apple turned to Google's Gemini to power its next generation of AI models after delays stalled the rollout.
