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Apple sues OpenAI, its employees claiming theft of trade secrets

BBC World · 2026-07-10

AI SUMMARY

• What happened: Apple has filed a federal lawsuit against OpenAI and two of its employees, alleging theft of trade secrets through the hiring of former Apple staff and improper access to proprietary information. • Why it matters: This lawsuit marks a significant escalation in the competitive dynamics between Apple and OpenAI, particularly as both companies are increasingly focused on integrating AI into their products and OpenAI prepares to launch its first hardware product. • What to watch next: The legal proceedings will reveal both companies' strategies and could have major implications for their future operations, especially as OpenAI is also considering a public offering.

**Apple Sues OpenAI Over Allegations of Trade Secret Theft**

Apple Inc. has initiated a federal lawsuit against OpenAI and two of its employees, alleging that the artificial intelligence company improperly accessed proprietary information through the hiring of former Apple staff. The lawsuit, filed on July 10, 2026, marks a significant escalation in the relationship between the tech giant and the AI firm known for its popular chatbot, ChatGPT.

In the legal complaint, Apple claims that OpenAI engaged in a "pattern of theft" concerning its confidential product development and other sensitive information. The lawsuit specifically names two former Apple employees who transitioned to OpenAI: Chang Liu, a senior electrical engineer, and Tang Yew Tan, who served as a vice president of design for the iPhone and Apple Watch for 24 years before becoming OpenAI's chief hardware officer.

Apple contends that these individuals, along with OpenAI and the design startup io Products—which OpenAI acquired last year—have exploited their access to sensitive projects, proprietary manufacturing techniques, and unreleased product details. The lawsuit further alleges that OpenAI has attempted to extract additional information from current Apple employees during job interviews, with claims that interviewers requested candidates to bring "actual parts" from Apple for "show and tell."

OpenAI has responded to the allegations through Drew Pusateri, a spokesperson for the company, who stated, "We have no interest in other companies' trade secrets." Pusateri added that OpenAI is currently reviewing Apple's complaint and remains focused on developing innovative technology that benefits users globally.

Apple's spokesperson expressed confidence in the lawsuit, stating that it is backed by "significant evidence." The company is seeking a court order to prevent OpenAI from using any alleged confidential information and is pursuing unspecified monetary damages.

This legal action comes at a time when Apple is increasingly integrating AI features into its products, having recently shifted some of its AI functionalities to run on Google's Gemini model. The lawsuit also highlights a notable shift in the dynamics between Apple and OpenAI, particularly following Tim Cook's announcement that he would step down as CEO later this year. Cook had previously incorporated ChatGPT into Apple devices as part of the company's AI strategy.

The lawsuit underscores Apple's concerns over OpenAI's forthcoming hardware ambitions, as the AI company is expected to launch its first hardware product—a keyboard designed for use with its AI tools—later this month. OpenAI is also preparing for a potential public offering, further intensifying the competitive landscape between the two companies.

Apple alleges that OpenAI's actions are indicative of a broader strategy to extract confidential information to advance its entry into the consumer hardware market. The lawsuit claims that OpenAI's "nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."

In February, Apple attempted to address its concerns directly with OpenAI, but claims that its efforts were ignored. The ongoing legal battle may have significant implications for both companies as they navigate the evolving landscape of technology and artificial intelligence.

As the situation develops, both Apple and OpenAI are expected to present their positions in court, with the outcome potentially influencing the future of their respective business strategies and the broader tech industry.

Source: BBC World
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