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CNBC·4 min read·medium

Apple sues OpenAI alleging trade secret theft

K
Kif Leswing, MacKenzie Sigalos
Apple sues OpenAI alleging trade secret theft
✦AI Summary

Apple has filed a lawsuit against OpenAI, alleging the theft of trade secrets and confidential intellectual property. The suit claims OpenAI directed former Apple employees to bring proprietary information to job interviews.

Why it matters

This legal battle highlights the intense competition and ethical tensions between major tech firms as they race to develop advanced AI hardware and software.

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Apple on Friday sued OpenAI in federal court in Northern California, alleging trade secret theft, saying that the artificial intelligence lab took the iPhone maker's intellectual property in order to develop its own consumer hardware.

"This much is clear, however: 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," the company said in a legal filing .

It's a shocking reversal for the two companies, which entered into a high-profile partnership in 2024, when ChatGPT was integrated into the iPhone's operating system. OpenAI CEO Sam Altman visited Apple's headquarters for the announcement.

But relations between the two companies have chilled since OpenAI announced plans to enter the hardware industry last year, when it bought former Apple designer Jony Ive 's startup, called IO Products, for $6.4 billion.

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