Apple Takes On OpenAI Over Alleged Trade Secret Theft in New Lawsuit
In Focus
- Apple filed the lawsuit in a U.S. District Court for the Northern District of California on Friday, July 10
- The iPhone-maker accuses OpenAI of using former employees to steal confidential information
- Apple wants OpenAI to compensate it for stealing confidential material
Apple has sued OpenAI for using its former employees to steal its trade secrets. In a lawsuit filed on Friday, July 10. Apple alleged that OpenAI and its hardware chief coordinated to steal information about its upcoming products as the AI startup works to develop AI-powered devices.
What Are the Details of Apple’s Trade Secrets Lawsuit?
In the OpenAI lawsuit, Apple alleges that every level of the AI startup participated in the trade secret theft scheme. However, the iPhone maker focuses more on former VP of product design Tang Tan who led the development of the iPhone, Airpods, and smartwatches in the tech company’s hardware engineering division. He left Apple and currently works as the chief hardware officer at OpenAI.
Tan is accused of soliciting confidential information from employees while interviewing them for positions at OpenAI. The lawsuit further claims that OpenAI advised departing Apple employees on how to delay removal from the company, allowing continued access to Apple systems and confidential information.
Apple has also named its former engineer Chang Liu as a defendant in the case. The tech company alleged that Liu obtained confidential information from Alyssa Peng before she left Apple to join OpenAI. Apple also alleged that Liu transferred internal documents from an Apple-owned laptop for the purpose of sharing them with OpenAI.
Liu founded IO products alongside Tan and former Apple designer, Jony Ive. OpenAI acquired IO last year for $6.5 million. According to Apple, over 400 of its former employees now work at OpenAI.
What Does Apple’s Lawsuit RevealAbout the AI Race?
Apple’s OpenAI trade secret theft lawsuit highlights the souring relationship between the two companies. The conflict exposes deeper industry tensions over securing AI talent, protecting intellectual property, and gaining an edge in the development of next-generation AI devices.
“At every level, from members of its technical staff to its chief hardware officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information. As a natural result, OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets,” Apple stated in its lawsuit as cited by the Indian Express.
Apple wants OpenAI to compensate it for the trade secret theft. The company is also seeking the removal of any confidential materials held by the AI startup. But OpenAI denied Apple’s allegations, claiming that it has “no interest in other companies’ trade secrets”.
The company claimed that its “focused on building innovative technology that empowers people everywhere”. Earlier this year, the AI company partnered with MediaTek and Qualcomm to develop chips for its upcoming AI-centric smartphones.
What the Trade Secret Case Means for OpenAI’s Partnerships
Apple’s lawsuit could create new challenges for OpenAI as it expands partnerships in AI hardware. Companies collaborating with OpenAI may demand stronger safeguards around intellectual property and employee transitions. The dispute could influence how future partners evaluate OpenAI’s data practices, hiring strategies, and ability to protect sensitive technology.
