Apple’s new lawsuit against OpenAI is less a typical trade secrets complaint and more like a live broadcast of the iPhone maker’s case for how its rival has built its consumer hardware ambitions.
The lawsuit, filed Friday, accuses OpenAI of a “systematic pattern of organizational-level misconduct” that includes everything from exploiting security bugs to recruiting Apple engineers for “show-and-tell” interview sessions about sensitive hardware.
In a statement to Business Insider, an OpenAI spokesperson said the company is “not interested in the trade secrets of other companies.”
“We remain focused on building innovative technology that empowers people everywhere,” the spokesperson said.
Here is the biggest suspicion.
OpenAI suspected of exploiting Apple’s security bug
According to the complaint, Apple’s investigation began after former employee Chang Liu left for OpenAI in January. Apple claims that Liu did not return the company’s laptop, but later discovered that he could still access Apple’s internal systems due to what the company described as an authentication bug.
Rather than reporting the issue, Apple said that while working at OpenAI, Liu downloaded dozens of confidential engineering files, including documents related to unreleased products, technical specifications, presentations, and manufacturing processes.
Apple also claims that Liu encouraged another Apple engineer he was interviewing at OpenAI to study confidential Apple materials before the interview and advised him on how to avoid attracting the attention of Apple’s security team while copying files. According to the complaint, the two moved their conversations to a private messaging app to avoid detection.
Apple claims OpenAI turned interviews into information gathering sessions
Apple also accused OpenAI of systematically using its recruitment process to obtain trade secrets. The buzzy AI company has filed its first documents for an initial public offering, making it one of the tech industry’s most sought-after employers. Amid the influx of talent, several Apple hardware engineers have retreated to the AI powerhouse.
The complaint alleges that former Apple vice president and chief hardware officer Tan Tan, who worked for the company for 24 years, asked Apple job applicants to bring physical components for a “show-and-tell” session during interviews. OpenAI employees also asked candidates for information about prototypes and vendors, according to the complaint.
The complaint alleges that one of the Apple employees at the time screenshotted and downloaded files from a “sensitive Apple project” and that Tan later asked questions about the project during an interview.
“OpenAI’s hiring practices suggest that OpenAI hires these individuals, at least in part, because of the confidential Apple-specific knowledge and expertise they possess and may improperly obtain,” the complaint says.
Apple announces fraud extends to OpenAI leadership
Apple said it raised concerns about OpenAI earlier this year and asked the company to investigate whether confidential Apple information was infiltrating its business.
OpenAI never responded, according to the complaint, prompting Apple to continue its investigation before filing a lawsuit on Friday.
“This is just the tip of the iceberg,” the complaint states. “Apple has no idea what’s going on behind closed doors at OpenAI, where this kind of misconduct is normalized and modeled by its leadership.”
“But this much is clear: At every level, from members of the technical staff to the chief hardware officer, and in coordination with business partners, OpenAI is stealing Apple’s trade secrets and confidential information,” the complaint continued. “As a natural result, OpenAI’s nascent hardware business is now built on the most shaky of foundations, rotten to the core by its illegal reliance on misappropriated trade secrets.”
Apple said it had “no choice” but to seek damages in an amount to be determined at trial, and the court issued an order prohibiting OpenAI and the individual defendants from possessing or using Apple’s trade secrets.
The lawsuit marks a dramatic escalation in Silicon Valley’s hottest AI partnership, following Apple’s integration of ChatGPT into Apple Intelligence in 2024. The relationship soured as OpenAI ramped up its consumer hardware ambitions by hiring former Apple executives and engineers.
The Apple lawsuit isn’t the only high-profile allegation that OpenAI has engaged in unfair business practices.
The creators of ChatGPT are also embroiled in a legal battle with the New York Times over claims that the company allowed its chatbot to use copyrighted material to train its systems.
Elon Musk also previously filed a lawsuit against OpenAI, accusing CEO Sam Altman and company president Greg Brockman of illegally enriching themselves by “stealing” the original OpenAI nonprofit and turning it into a for-profit model. A jury handed OpenAI a legal victory in May, concluding that Musk had missed the three-year statute of limitations for filing a lawsuit.
Tan, Liu, and Apple representatives did not immediately respond to requests for comment from Business Insider.