Apple Files Lawsuit Against OpenAI Over AI Hardware Trade Secret Infringement

The legal battle over dominance in the AI hardware market marks the collapse of Apple and OpenAI's two-year alliance, which had been strained since OpenAI's 2024 announcement of integrating ChatGPT with iPhones. Apple alleges OpenAI systematically misappropriated its trade secrets and intellectual property, including confidential hardware designs and supply chain strategies, through coordinated efforts involving former Apple employees. The lawsuit names OpenAI's chief hardware officer, Tang Dan, and former Apple engineers like Chang Liu, who allegedly exploited security vulnerabilities to download sensitive documents. OpenAI's expansion into hardware, including acquiring IO, a startup founded by Apple's former designer Jony Ive, has fueled tensions, with Apple accusing OpenAI of leveraging former employees to shortcut development timelines.