Apple filed a lawsuit on Friday in the U.S. District Court for the Northern District of California against OpenAI Group PBC, accusing the company of stealing intellectual property related to its consumer devices. The lawsuit alleges that OpenAI poached confidential information regarding unreleased technologies and products as it prepares to launch its own AI-focused consumer devices.
The legal action names OpenAI’s chief hardware officer Tang Tan and former Apple engineer Chang Liu, alleging a pattern of misconduct. Apple claims that Liu took more than just experience when he left for OpenAI's nascent hardware division. Many of the recruits hired by OpenAI came from the hardware engineering division of Ternus, including designers who had backed Tan over Ternus for a top hardware job in 2021.
This conflict arises as OpenAI enters the consumer electronics market, having previously acquired io Products Inc., a startup founded by former Apple executives. Although the two companies struck a deal in 2024 to offer AI services on Apple devices, their partnership has since soured. The lawsuit is expected to significantly complicate OpenAI's plans for a much anticipated IPO.
In a statement, a spokesperson for OpenAI denied the allegations, stating that the company has no interest in other companies' trade secrets.