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Apple has filed a lawsuit against OpenAI and two former employees, accusing the ChatGPT maker of misappropriating confidential trade secrets to accelerate its expansion into consumer AI hardware.

The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that OpenAI orchestrated a systematic effort to obtain Apple’s proprietary information through former employees, recruitment practices and supplier relationships.

Apple named former senior system electrical engineer Chang Liu and former Vice President of Product Design Tang Yew Tan as co-defendants, alleging they improperly retained and transferred confidential hardware information before joining OpenAI.

According to the complaint, Liu failed to return a company-issued laptop and later exploited an authentication flaw to access Apple’s internal network, downloading confidential hardware-related files.

Apple also alleged that Tan emailed himself confidential information relating to suppliers and internal industry reports before leaving the company and encouraged Apple employees interviewing with OpenAI to bring hardware components to job interviews.

OpenAI denied the allegations, saying it has no interest in competitors’ trade secrets.

“We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere,” the company said in a statement.

Apple further claimed that more than 400 former Apple employees now work at OpenAI, stressing that while hiring former employees is lawful, using confidential information obtained during their employment is not.

The lawsuit comes as competition between the two companies intensifies over the future of AI-powered consumer devices. OpenAI has been expanding beyond software following its acquisition of hardware startup io Products, founded by former Apple design chief Jony Ive, while Apple continues integrating AI features across its ecosystem.

If successful, the case could significantly affect OpenAI’s hardware ambitions and further strain the companies’ partnership, which currently allows ChatGPT integration within Apple’s Siri and Apple Intelligence services.

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