Key Points
- Apple initiated federal legal proceedings against OpenAI and two ex-staff members on Friday
- Former Apple VP Tang Yew Tan and engineer Chang Liu allegedly removed proprietary documents
- The lawsuit contends OpenAI leveraged stolen hardware data for its device development strategy
- Apple reportedly contacted OpenAI in February about concerns but received no reply
- OpenAI refutes the allegations, stating it has “no interest in other companies’ trade secrets”
On Friday, Apple initiated legal action against OpenAI, two previous staff members, and hardware company io Products in the United States District Court for the Northern District of California.
The legal complaint alleges OpenAI orchestrated a systematic campaign to obtain Apple’s proprietary data through strategic hiring, supplier connections, and accessing internal documentation.
The two former staff members identified in the lawsuit are Tang Yew Tan, previously Apple’s VP overseeing product design for iPhone and Apple Watch, alongside Chang Liu, who served as a senior electrical engineer. Tan dedicated 24 years to Apple prior to accepting a position as OpenAI’s chief hardware officer.
According to Apple’s filing, Liu did not return his company-issued laptop and exploited an authentication vulnerability to extract “dozens of confidential hardware-related files” from Apple’s proprietary network.
The complaint alleges Tan transmitted Apple supplier details and internal industry analyses to his personal email address prior to his departure from the organization.
Apple further contends that during recruitment interviews, OpenAI encouraged prospective hires to bring physical Apple components for “show and tell” demonstrations. One interview candidate purportedly expressed surprise, saying they “didn’t even know we could take those from the office.”
OpenAI rejected the accusations. Company spokesperson Drew Pusateri stated the organization remains “focused on building innovative technology that empowers people everywhere.”
According to Apple’s court documents, over 400 former Apple staff members currently hold positions at OpenAI. Apple maintains this employment migration does not authorize OpenAI to exploit their proprietary expertise.
What’s at Stake: AI-Powered Devices and Changing Alliances
The litigation emerges as OpenAI expands into consumer electronics. OpenAI purchased io Products, a company established by ex-Apple design chief Jony Ive, in a $6.5 billion transaction last year. Ive is not included as a defendant in the case.
OpenAI plans to unveil its inaugural hardware offering, an AI-powered keyboard, within the month. Industry observers suggest the organization is simultaneously developing a smartphone or similar standalone product.
The relationship between Apple and OpenAI was previously collaborative. In 2024, Apple incorporated ChatGPT functionality into its ecosystem via Siri. This year, Apple redirected additional AI capabilities toward Google’s Gemini platform.
Stanford Law professor Mark Lemley characterized the lawsuit as potentially “very big,” while emphasizing that California law permits hiring from competitors. Nevertheless, he acknowledged that removing confidential materials would create serious legal exposure for OpenAI.
Apple requests the court prohibit OpenAI from utilizing any allegedly misappropriated proprietary information and seeks monetary compensation in amounts to be determined.
Apple asserted its hardware division “now rests on the shakiest of foundations” if constructed upon misappropriated trade secrets.
The legal action represents a dramatic reversal from what had been a cooperative business relationship between the organizations. Apple CEO Tim Cook plans to step down later this year. Following Cook’s April departure announcement, OpenAI’s Sam Altman praised him as “a legend.”
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