Apple Sues OpenAI Over Alleged Theft of Top-Secret Hardware Designs

Apple filed a federal lawsuit on Friday against OpenAI and two former employees, alleging the artificial intelligence startup orchestrated a coordinated campaign to siphon top-secret hardware designs.

The legal action, filed in a California district court, accuses the ChatGPT developer of exploiting former Apple employees to accelerate the development of its nascent consumer-device division.

It represents a dramatic rupture between two of Silicon Valley’s most prominent partners.

Coordinated Corporate Defections

The Cupertino-based technology giant claims OpenAI deliberately cultivated an environment of corporate espionage. According to the filing, the startup actively coached departing Apple personnel on how to evade internal security protocols and retain access to sensitive networks.

More than 400 former Apple workers have migrated to OpenAI. This exodus includes Tang Tan, OpenAI’s current chief hardware officer, who previously spent 24 years leading product design for the iPhone and Apple Watch.

Apple alleges Tan urged prospective hires to bring classified prototypes to OpenAI job interviews. The suit claims he shared confidential supplier data with the startup months before his official departure.

“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,” the lawsuit stated.

Digital Network Vulnerabilities

The complaint also targets Chang Liu, a former electrical engineer who transitioned to OpenAI in January.

Liu allegedly exploited network vulnerabilities to download detailed engineering presentations and proprietary project data.

Internal communications cited in the case indicate Liu illicitly accessed Apple’s storage systems post-departure.

He is also accused of utilizing a colleague’s computer to copy files and instructing her on evasion tactics before she joined OpenAI in April.

OpenAI denied the accusations. “We have no interest in other companies’ trade secrets,” a company spokesperson said, adding that the firm remains focused on building innovative technology.

Escalating Valley Rivalry

The litigation underscores escalating friction over the next generation of hardware.

OpenAI signaled its consumer ambitions last year by acquiring a startup founded by former Apple design chief Jony Ive for roughly $6.5 billion.

Apple is demanding a jury trial, seeking financial damages, and requesting an injunction.

The company insists OpenAI must surrender all proprietary data and redesign any upcoming products tainted by the alleged theft.

The dispute shatters the fragile alliance formed when Apple integrated ChatGPT into its Siri interface.

It also compounds existing pressures on OpenAI, which recently navigated a dismissed lawsuit from Elon Musk and faces mounting scrutiny over its $852 billion valuation.