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Apple Sues OpenAI Over Hardware Trade Secret Theft

Apple's federal lawsuit accuses OpenAI of coaching incoming hires to stay at Apple longer and harvest confidential information before leaving.

Apple filed suit against OpenAI on Friday, and the allegations go well beyond a few employees jumping ship.

The complaint, filed in the Northern District of California, names OpenAI chief hardware officer Tang Tan, technical staff member Chang Liu, OpenAI, and io Products as defendants. Tan previously led product design at Apple across iPhone, AirPods, and Apple Watch before joining OpenAI. io Products — the hardware venture Tan co-founded with former Apple design chief Jony Ive, Ive's successor Evans Hankey, and designer Scott Cannon — is also named, though Apple's complaint stops short of naming Ive directly. Apple alleges it flagged concerns to OpenAI in February and received no response. The suit claims Tan asked job candidates to bring Apple components to "show and tell" sessions, while Liu allegedly kept a company laptop and exploited an authentication bug to access Apple systems. Most striking: Apple claims OpenAI actively coached incoming hires to stay at their current Apple jobs as long as possible, not disclose where they were headed, and continue siphoning confidential information up until their last day.

The significance here is less about two companies squabbling over employees — that happens constantly in Silicon Valley — and more about what it implies for OpenAI's hardware ambitions. Over 400 former Apple employees reportedly now work at OpenAI, and the company is widely believed to be developing consumer hardware. If Apple can show that foundational design knowledge was systematically extracted, it could seek injunctions blocking OpenAI from shipping products built on that information.

The timing adds another layer of tension: Bloomberg reported in May that OpenAI was itself weighing legal action against Apple over ChatGPT's integration depth in iOS. Two companies suing each other while still partnered on a major platform feature is the kind of situation that makes the word "complicated" do a lot of heavy lifting.

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