Apple has filed a lawsuit against OpenAI and two former employees, alleging the theft of trade secrets

Apple, on Friday, initiated legal action against OpenAI and two former employees, claiming that they misappropriated the trade secrets of the iPhone manufacturer to advance the ChatGPT owner’s venture into consumer hardware.

The complaint, submitted to the U.S. District Court for the Northern District of California, claims a deliberate attempt to misappropriate Apple’s confidential information, encompassing product designs, manufacturing processes, and supply chain strategies.

The lawsuit targets Chang Liu, the former senior system electrical engineer at Apple, and Tang Yew Tan, the former vice president of product design for iPhone and Apple Watch, along with the OpenAI Foundation, OpenAI Group PBC, and IO Products.

It significantly heightens the tension between Apple and the creator of ChatGPT that has been brewing for months. OpenAI has not yet provided a response to a request for comment from Reuters.

Apple alleged that Liu did not return a company-issued work laptop and subsequently exploited an authentication bug to gain access to Apple’s internal network, downloading numerous confidential hardware-related files belonging to the company.

The company asserted that Tan “has been systematically utilizing Apple’s confidential information to advantage OpenAI” by sending himself details regarding Apple suppliers and internal industry summaries prior to his exit.

A source with knowledge of the situation informed Reuters in May that OpenAI was considering legal avenues against Apple, which included alerting the tech giant about a breach of contract, though it might not pursue a complete lawsuit.

The tensions between the two tech companies have strained their relationship and highlighted the intensified competition for talent and proprietary technology in the race to develop AI products.

In 2024, Apple announced the integration of its “Apple Intelligence” technology across its apps, including Siri, and introduced OpenAI’s chatbot ChatGPT to its devices.

Their collaboration enables users to access ChatGPT results via Siri, and iPhone users can also register for ChatGPT memberships directly from the iOS settings menu.

OpenAI acquired the hardware startup io Products, established by former Apple designer Jony Ive, last year in a $6.5 billion transaction, highlighting its ambition to expand beyond software into consumer hardware. The lawsuit does not mention IVE.

Last month, Apple launched a long-awaited update to Siri. The update arrives two years after Apple initially pledged significant enhancements that faced multiple delays.