Apple files lawsuit accusing OpenAI of stealing trade secrets

Apple has sued OpenAI, claiming the startup gained access to its confidential technology through former employees as the race to develop AI-powered devices heats up.

The lawsuit accuses OpenAI of encouraging employees who had left Apple to share sensitive information about products that had not yet been announced.

The lawsuit largely centers on Tang Tan, a former Apple vice president who spent 24 years at the company and now serves as OpenAI’s chief hardware officer. Apple claims Tan used its project names during recruitment, asked candidates about unreleased products, and encouraged them to bypass company security rules.

The case alleges that OpenAI instructed Apple employees joining the company to delay their departures, thereby allowing them continued access to the iPhone maker’s internal systems and proprietary information.

Apple also named former engineer Chang Liu as a defendant in the case and alleges that he kept a company-issued laptop, exploited a software bug to retain access to internal servers, and continued to obtain confidential data from then-Apple employee Alyssa Peng before she also moved to OpenAI, according to Bloomberg.

The lawsuit comes as OpenAI is expanding its hardware plans, raising expectations that it could eventually launch products that compete with Apple devices.

According to Apple, it alerted OpenAI to its concerns earlier this year but got no reply. The company is seeking damages and an order requiring OpenAI to destroy any Apple proprietary material.

OpenAI rejected the allegations, saying it has no interest in competitors’ trade secrets and remains focused on creating new AI technologies.

The lawsuit became fodder for Elon Musk, Sam Altman’s longtime industry rival, and he called him “Scam Altman” on X. Altman responded by mocking Musk’s criticism and defending OpenAI’s newly launched GPT-5.6 Sol model.

Their latest exchange adds to years of rivalry that began after Musk left OpenAI in 2018.