Apple sues OpenAI: 400 former employees in a dispute over AI hardware

robot
Abstract generation in progress

TL;DR
· Apple sues OpenAI in U.S. court, alleging it recruited more than 400 Apple employees and systematically acquired trade secrets to develop consumer-grade AI hardware.
· The lawsuit names OpenAI Chief Hardware Officer Tang Tan and technician Chang Liu as defendants; Apple accuses them of requiring candidates to bring components, leaking unreleased product information, and downloading internal files.
· The lawsuit could affect OpenAI’s upcoming AI hardware and IPO plans, but the case is expected to last for years, and the related allegations are still pending judicial review.

Apple and OpenAI’s competition, which began with AI models and system partnerships, has officially escalated to the courtroom.

According to The Information, Apple has filed a lawsuit in the U.S. District Court for the Northern District of California against OpenAI and multiple current or former Apple employees, alleging they have long and systematically obtained Apple’s business secrets for the development of consumer-grade AI hardware products. Apple says that since OpenAI launched its hardware project, more than 400 Apple employees have joined the company, including a former iPhone product lead, now OpenAI Chief Hardware Officer Tang Tan, and technician Chang Liu.

This is the first public legal clash after the two sides’ relationship deteriorated sharply. Two years ago, Apple also integrated ChatGPT into Apple Intelligence, which was seen as one of OpenAI’s most important partners; now, the focus of their competition has expanded from AI software to consumer-grade hardware.

Apple claims OpenAI has continued “poaching” around the hardware project

In its lawsuit, Apple argues that this is not ordinary talent mobility, but a systematic recruiting plan centered on AI hardware.

The complaint shows that Tang Tan is one of the primary hiring leads for OpenAI’s hardware team. Apple claims that before leaving, he discussed supply-chain matters with OpenAI or its partners and sent himself Apple supplier information and industry internal materials. After joining OpenAI, he also required some candidates who were still working at Apple to introduce unreleased product information during the recruiting process, and even brought Apple hardware components to interviews to obtain more internal information.

Apple also accuses that during the hiring process, OpenAI required candidates to share R&D information such as product design, CAD files, prototype units, ways suppliers collaborate, and system-integration tools, and provided new employees advice on how to avoid having their conduct discovered by Apple’s security team. All of the above comes from Apple’s complaint and is currently still Apple’s unilateral allegations, not yet recognized by the court.

Chang Liu is accused of using a loophole to download confidential files

Apple also lists another former employee, Chang Liu, as a defendant.

According to the complaint, after leaving Apple, Chang Liu retained an Apple work computer and used a previously unknown authentication vulnerability in an Apple enterprise system to access and download dozens of confidential documents related to hardware R&D.

Apple further claims that Chang Liu also instructed Apple employees who were being recruited by OpenAI on how to copy internal materials without being detected by Apple’s security team. During the investigation, Apple believes it uncovered a broader pattern: some former employees who joined OpenAI had sent Apple internal materials to their personal email accounts before resigning, while others used the business secrets they had obtained to participate in OpenAI’s hardware R&D.

OpenAI responds that the company has “no interest in other companies’ trade secrets,” and has always focused on developing innovative AI technology. Both Tang Tan and Chang Liu have not publicly responded to the allegations.

Behind the lawsuit is OpenAI’s hardware plan

The context for Apple’s lawsuit is that OpenAI is rapidly pushing ahead with its AI hardware rollout.

Last year, OpenAI acquired io Products, a company founded by Tang Tan and former Apple Chief Design Officer Jony Ive, in an all-stock transaction valued at about $6.5 billion; it has since become an important foundation for OpenAI’s hardware business.

As previously reported by The Information, OpenAI has discussed multiple products with suppliers, including screenless smart speakers, AI glasses, digital recording devices, and wearable devices, and plans to launch its first batch of products in late 2026 to early 2027. Apple also points out in the lawsuit that OpenAI has hired large numbers of Apple hardware employees from multiple teams, including product design, displays, antennas, supply-chain management, and procurement.

Apple also accuses that OpenAI misled an Apple supply-chain partner into believing it had obtained Apple authorization, thereby enabling OpenAI to obtain Apple’s metal surface treatment processes for internal use.

AI hardware competition enters the legal stage

This lawsuit not only involves talent mobility, but also signals that Apple and OpenAI’s competition is entering a new phase.

Apple believes OpenAI’s hardware business development heavily relies on Apple’s trade secrets; however, OpenAI has not publicly released any hardware products yet, and the above allegations still need to be tried by the court and tested against evidence.

Based on historical experience, intellectual property lawsuits between Apple and companies such as Samsung and Qualcomm often last several years, so in the short term this case may not necessarily affect OpenAI’s product timeline. But for an AI company that has already privately submitted IPO filing documents and is preparing to enter the consumer hardware market, this lawsuit increases legal and compliance-level uncertainty, and also means that the competition in AI hardware is extending beyond model capabilities and talent acquisition further into intellectual property and the supply chain.

Click to learn more about job openings from Liyudong BlockBeats

Welcome to join Liyudong BlockBeats’ official community:

Telegram subscription group: https://t.me/theblockbeats

Telegram discussion group: https://t.me/BlockBeats_App

Twitter official account: https://twitter.com/BlockBeatsAsia

AAPL-0.26%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned