Apple sues OpenAI for stealing trade secrets

Apple on Friday sued OpenAI, accusing the artificial intelligence company of orchestrating a campaign to steal the iPhone maker’s trade secrets as it tries to develop its own consumer hardware device.

The lawsuit – filed in a federal court in San Jose, California – paints a picture of an aggressive effort by OpenAI to poach Apple employees and extract confidential information to build its own device.

The lawsuit marks a dramatic escalation in tensions between two companies that partnered in 2024 to integrate ChatGPT into Apple’s products.

That relationship has since deteriorated. Bloomberg reported in May that OpenAI was itself considering legal action against Apple, alleging the tech giant had failed to adequately promote the ChatGPT integration.

“At every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information,” Apple said in the 41-page complaint.

The suit will significantly complicate OpenAI’s plans for a hotly anticipated initial public offering.