Apple has taken OpenAI to court, accusing the ChatGPT developer of unlawfully using confidential company information to accelerate the development of its artificial intelligence hardware, intensifying the rivalry between the two tech giants.
The lawsuit, filed Friday in a federal court in California, alleges that OpenAI recruited Apple engineers and encouraged them to disclose proprietary information while leaving the company. Apple claims the alleged actions were aimed at giving OpenAI an unfair advantage in its emerging AI hardware business.
According to the complaint, two former Apple employees who later joined OpenAI played key roles in the alleged misuse of confidential information.
They include Tang Tan, a longtime Apple executive who helped develop products such as the iPhone, Apple Watch and iPod before becoming OpenAI`s chief hardware officer, and Chang Liu, who joined OpenAI earlier this year after working on Apple`s product development team.
Apple said it launched an internal investigation after suspecting sensitive information had been compromised. The company claims its inquiry uncovered what it described as a pattern of trade secret theft involving former employees who later moved to OpenAI.
The lawsuit alleges that Liu downloaded confidential hardware-related files after leaving Apple, while Tan encouraged Apple employees interviewing with OpenAI to bring Apple hardware components to job interviews.
Apple said it raised the issue with OpenAI in February but received no response. The company said the legal action is intended to protect its intellectual property and prevent any further use of confidential technology.
OpenAI said it is reviewing the lawsuit. Company spokesperson Drew Pusateri said the company has no interest in competitors` trade secrets and remains focused on building products that benefit users.
Although OpenAI has not publicly revealed its upcoming AI hardware, the company has said it is working on a new category of consumer device designed to offer a different way of interacting with artificial intelligence beyond smartphones and computers.
The dispute comes after Apple and OpenAI initially partnered in 2024 to integrate ChatGPT into the iPhone. Since then, OpenAI has expanded its hardware ambitions, hiring former Apple design chief Jony Ive to lead a new AI device project.
Last year, OpenAI also acquired io Products, a company co-founded by Ive and former Apple executives, in a deal valued at nearly $6.5 billion. Apple has named io Products as a defendant in the lawsuit.
The case adds a new legal dimension to the growing competition in the AI industry, where OpenAI is also competing with rivals including Google and Anthropic while preparing to launch its first consumer hardware product later this year.
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