SAN FRANCISCO: Apple on Friday (Jul 10) sued OpenAI, accusing the bogus intelligence firm of orchestrating a marketing campaign to steal the iPhone maker’s commerce secrets and techniques because it tries to develop its personal shopper {hardware} machine.
The lawsuit – filed in a federal courtroom in San Jose, California – paints an image of an aggressive effort by OpenAI to poach Apple workers and extract confidential data to construct its personal machine.
The lawsuit marks a dramatic escalation in tensions between two firms that partnered in 2024 to combine ChatGPT into Apple’s merchandise.
That relationship has since deteriorated. Bloomberg reported in Might that OpenAI was itself contemplating authorized motion towards Apple, alleging the tech big had did not adequately promote the ChatGPT integration.
“At each stage, from members of its Technical Workers to its Chief {Hardware} Officer, and in coordination with enterprise companions, OpenAI has been stealing Apple’s commerce secrets and techniques and confidential data,” Apple mentioned within the 41-page criticism.
The swimsuit will considerably complicate OpenAI’s plans for a hotly anticipated initial public offering.
The corporate, valued at roughly US$852 billion, has raised greater than US$180 billion from traders, and increasing into shopper {hardware} was seen as a serious alternative for progress.
“Vital proof has emerged suggesting people employed by OpenAI wrongfully took Apple’s secret and confidential data relating to our unreleased applied sciences, processes and merchandise,” the corporate mentioned in a press release to AFP.
“We are going to at all times defend our groups’ exhausting work and improvements, and we’re taking all applicable steps to take action.”
OpenAI responded to AFP’s request for remark with an emailed assertion Friday.
“We have now little interest in different firms’ commerce secrets and techniques. We stay targeted on constructing modern know-how that empowers folks in all places,” an OpenAI spokesperson mentioned.
The swimsuit names OpenAI, its {hardware} subsidiary io Merchandise – the corporate co-founded by former Apple design chief Jony Ive – and two former Apple workers: Tang Yew Tan, now OpenAI’s chief {hardware} officer, and engineer Chang Liu.
Apple mentioned it was looking for damages and an injunction barring OpenAI from utilizing its confidential data, calling the lawsuit vital after OpenAI failed to answer issues the corporate raised in February.
“SHOW AND TELL”
Tan spent 24 years at Apple, most just lately as vp of product design for the iPhone and Apple Watch, earlier than co-founding io Merchandise, which OpenAI acquired for roughly US$6.5 billion in 2025.
Apple alleged that Tan used confidential undertaking code names throughout OpenAI job interviews to probe candidates about unreleased Apple merchandise. In accordance with the criticism, about 400 workers at OpenAI are former Apple staffers.
Tan additionally allegedly advised Apple workers to carry bodily parts, reminiscent of batteries, circuit boards, and different elements, to interviews for “present and inform” classes.
Apple described its findings as “the tip of the iceberg”, saying it had restricted visibility into what was taking place behind OpenAI’s closed doorways.
“OpenAI’s nascent {hardware} enterprise now rests on the shakiest of foundations, rotten to its core by its unlawful reliance on misappropriated commerce secrets and techniques,” the criticism mentioned.
