Apple Sues OpenAI: Stolen IP Threatens Hardware & IPO

Apple has filed a federal lawsuit against OpenAI, alleging the AI company systematically stole trade secrets to build a competing consumer hardware device. The complaint names OpenAI, two former Apple employees, and Jony Ive’s hardware startup io Products as defendants. The lawsuit claims OpenAI’s hardware division was built on stolen Apple intellectual property. It alleges OpenAI's chief hardware officer used job interviews to gather intelligence and coached departing employees on how to bypass Apple’s security protocols. Former Apple employees Tang Tan and Chang Liu are central to the allegations. Tan, who spent 24 years at Apple, allegedly used confidential Apple project codenames during interviews and directed candidates to bring physical Apple components to OpenAI. Liu is accused of downloading dozens of confidential hardware files after leaving Apple for OpenAI. This lawsuit could delay OpenAI's AI hardware device and its upcoming IPO. It reveals the most detailed public account of OpenAI's secret hardware program to date. This legal battle highlights the intense competition for innovation in the tech industry.