Apple and OpenAI were partners less than two years ago. In 2024, they announced a deal to put ChatGPT into iPhones. Now Apple contends that this same collaborator misappropriated its confidential hardware designs. What was once a partnership built on trust has devolved into a courtroom dispute.
Apple asserts that OpenAI arranged a strategy to acquire its proprietary data, particularly concerning unannounced hardware and fabrication methods. In its legal filing, Apple said: "This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information."
Apple's hardware secrecy is legendary; the company typically guards its product designs and manufacturing processes with extreme caution. The involvement of IO Products, a startup led by the iconic designer of the iPhone, Jony Ive, has amplified concerns. According to the lawsuit, OpenAI used the acquisition as a cover to access Apple's proprietary finishing techniques and component specifications.
The lawsuit adds to OpenAI's growing legal troubles. Just two months before Apple filed its case, OpenAI won a high-profile trial against Elon Musk, who said he would appeal. Now the company faces a new threat from one of its biggest partners. An Apple representative told CNBC, "Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes, and products."
Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter
OpenAI denies the accusations. A spokesperson said: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." Meanwhile, OpenAI's hardware ambitions are clear.
The departure of former Apple engineers Tang Tan and Chang Liu to OpenAI deepened Apple's suspicion. According to the lawsuit, Tan - who now leads OpenAI's hardware division - instructed Apple workers who were being interviewed at OpenAI to carry physical Apple components for demonstration purposes. It also alleges that Liu stole an Apple laptop. Both are named as defendants.
The timing and nature of OpenAI's hardware plans remain unannounced, though Sam Altman confirmed in November that initial prototypes had been completed. Additionally, Apple claims OpenAI has been requesting that manufacturing partners perform a specialized metal finishing process developed by Apple, while deceiving those partners into thinking Apple had authorized its use.
The lawsuit also names IO Products as a defendant.
The impact of the lawsuit on Apple's ongoing collaboration with OpenAI - specifically the ChatGPT integration into Apple Intelligence - remains uncertain. OpenAI is also preparing for a planned initial public offering (IPO) - when a private company sells shares to the public for the first time. This lawsuit adds risk to that plan.
Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets