Apple has initiated legal action against OpenAI and two former staff members. The Silicon Valley giant accuses the ChatGPT creator of systematically harvesting proprietary hardware data to accelerate its own push into consumer electronics.
Filed in a California federal court, the complaint highlights a deteriorating relationship between the two tech heavyweights. Industry analysts suspect OpenAI intends to manufacture physical devices that could circumvent traditional operating systems and directly challenge the iPhone’s market dominance. OpenAI strongly rejected the claims, stating it remains dedicated to innovating without relying on competitors’ confidential data.
The litigation targets Tang Yew Tan, a former iPhone design executive, alongside former electrical engineer Chang Liu. Apple asserts Tan transferred internal supplier details to his personal accounts before exiting the company. The lawsuit further alleges he instructed prospective OpenAI hires to smuggle physical Apple components into their job interviews for demonstration purposes.
Meanwhile, Liu is accused of retaining a corporate laptop and exploiting network vulnerabilities to siphon dozens of restricted hardware files. Apple also claims OpenAI misled a shared manufacturing partner into executing a confidential metal-finishing process by falsely claiming it possessed the necessary authorisation. The iPhone manufacturer noted it attempted to address these security breaches privately in February but received no response from OpenAI leadership.
A fragile partnership under threat
This courtroom clash exposes the unstable nature of their existing corporate partnership. Just months ago, Apple embedded ChatGPT functionality into a revamped Siri interface and allowed iOS users to purchase subscriptions directly. However, the aggressive pursuit of artificial intelligence dominance has intensified their underlying rivalry.
OpenAI recently signalled its hardware ambitions by purchasing io Products, a startup established by ex-Apple designer Jony Ive, for $6.5 bn. While it is legal in California to recruit staff from rivals, OpenAI currently employs over 400 former Apple workers, the lawsuit stresses that leveraging stolen intellectual property strictly violates the law.
Legal scholars observe that this dispute represents uncharted territory. Rutgers Law School professor Camilla Hrdy noted that previous artificial intelligence lawsuits primarily focused on software code rather than physical manufacturing. Stanford Law School professor Mark Lemley added that if the document theft allegations are proven true, OpenAI faces severe legal consequences despite the state’s permissive employment mobility laws.
