Apple sues Open AI accusing them of stealing ‘trade secrets’
Apple has accused Open AI and two of its former employees of stealing top secret information as the two biggest names in Silicon Valley prepare to compete in the consumer electronics market.
The iPhone maker said in a lawsuit filed on Friday in a California federal court that the theft of its trade secrets was part of a “coordinated pattern of misconduct” normalised by the top leadership at Open AI.
Apple claimed the Chat GPT maker had used its both former and current employees to steal hardware designs, as it prepares to launch its own AI-focused devices that could rival Apple products.
Apple said: “Significant evidence has emerged suggesting individuals employed by Open AI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes and products.”
Relationship breakdown
The lawsuit solidifies the unravelling of the relationship between the tech heavyweights as they take further steps into each other’s territory.
Apple launched its new Chat GPT-like Siri model in June while Open AI eyes taking on the iPhone.
Sam Altman’s start up first indicated it planned to challenge Apple in the market when it acquired io, the studio led by former Apple design chief Jony Ive for $6.4bn (£4.7bn) in May 2025. Ive is not named as a defendant in the lawsuit.
Open AI has since poached further employees from Apple, with the company claiming over 400 of its former employees now work for Open AI.
In its lawsuit, Apple said it launched an internal investigation into Open AI’s potential theft of trade secrets in February, and warned the Chat GPT maker, but did not receive a response.
Apple alleged the evidence was just the “tip of the iceberg” at Open AI.
The lawsuit said: “As a natural result, Open AI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets”.
Former employees named
Two former Apple employees were also named in the lawsuit
Tang Tan, Open AI’s chief hardware officer, who left Apple in early 2024 to join Ive’s studio before it was snapped up by Open AI.
Tan had a career at Apple which spanned over 20 years, which included being vice-president of product design for the iPhone and Apple watch.
The company claimed Tan “has been methodically using Apple’s confidential information to benefit Open AI” by emailing himself information about Apple’s suppliers and internal industry summaries before his departure.
The lawsuit went on to allege that when “interviewing Apple employees for jobs at Open AI, Mr Tan uses Apple’s confidential information to gain access to even more insider knowledge”.
Chang Liu, a former electrical engineer at Apple and worked on some of the company’s “most sensitive product development programs” before he joined Open AI this January was also named.
Apple alleged that Liu failed to return a company-issued laptop and later used an authentication bug to access Apple’s internal network, downloading “dozens of Apple’s confidential hardware-related files”.
Responding to the lawsuit, Open AI said: “We have no interest in other companies’ trade secrets.
“We remain focused on building innovative technology that empowers people everywhere.”