Consumer electronics giant Apple (APPL) is suing artificial intelligence (A.I.) startup OpenAI over alleged trade secret theft.
Apple has filed a lawsuit against OpenAI in federal court, saying that the A.I. company stole the iPhone maker’s intellectual property to develop its own consumer hardware products.
“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,” reads the lawsuit.
The lawsuit comes after the two companies entered into a high-profile partnership in 2024, when ChatGPT was integrated into the iPhone’s operating system.
Relations between the companies turned frosty after OpenAI announced plans to enter the hardware industry and bought former Apple designer Jony Ive’s startup company called IO Products for $6.4 billion U.S.
Apple’s newest version of its Siri digital assistant, which is due out this September, is based on Alphabet’s (GOOGL) Gemini A.I. model instead of OpenAI’s technology.
Most of Apple’s allegations involve former employees who have interviewed for jobs at OpenAI or joined the startup company in recent years.
Apple alleges that OpenAI’s hardware chief, Tang Tan, who is a former Apple vice president, has directed Apple employees interviewing at OpenAI to share trade secrets.
Apple also claims that OpenAI coached departing Apple employees in how to evade security processes when leaving the iPhone maker, and that one former worker stole an Apple laptop.
Jony Ive’s IO Products is also named in the legal filing.
The lawsuit arrives as OpenAI prepares to go public in what’s expected to be a blockbuster initial public offering (IPO).
In the lawsuit, Apple is seeking damages, injunctions, and an order to force OpenAI to stop using its trade secrets.
AAPL stock has risen 51% in the last 12 months to trade at $315.32 U.S. per share.
