Apple Sues OpenAI for Trade Secret Theft Tied to ChatGPT Maker's Hardware Ambitions

Apple is suing OpenAI in federal court in Northern California, alleging trade secret theft — claiming the AI lab took the iPhone maker's intellectual property to develop its own consumer hardware. It's a stunning reversal for two companies that entered a high-profile partnership in 2024, when ChatGPT was integrated into the iPhone's operating system. Apple alleges the misconduct was directed by OpenAI's senior leadership, including Chief Hardware Officer Tang Tan, who is accused of using Apple's confidential project code names during recruiting, asking job candidates to bring Apple hardware components to interviews, and coaching departing Apple employees on how to evade security procedures. The lawsuit also alleges former Apple engineer Chang Liu kept a work-issued laptop and discovered a bug allowing him to access Apple's cloud storage after leaving — and celebrated the exploit. IO Products is also named in the lawsuit. Apple says over 400 former employees now work at OpenAI. Mounting legal woes present another risk to OpenAI as it gears up for what's expected to be a historic IPO.