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Apple files 40-page suit against OpenAI
What the suit alleges
The suit alleges that OpenAI encouraged current Apple employees to study confidential materials before their interviews with OpenAI, and even to take hardware components and prototypes with them to OpenAI's offices. OpenAI has denied the charges and says it has no interest in other companies' trade secrets. Bloomberg describes the filing as following months of simmering tension between the two companies.
The Tang Tan dispute
Much of the dispute centers on Tang Tan, a former Apple executive who oversaw design of the iPhone and the Apple Watch. In late 2023 he told Apple he was leaving to become chief hardware officer at OpenAI, and Apple kept him through February 2024 as part of his transition. Apple alleges that during that time he was already working with Jony Ive and Sam Altman at OpenAI and moving Apple information between the two companies.
Another key Apple staffer left for OpenAI recently. Once he told Apple he was leaving, he was asked to go right away.
Why can't California employers block departing staff?
California law voids most noncompete agreements, so a company based in the state generally cannot stop an employee from joining a rival. The rule, found in Section 16600 of the state's Business and Professions Code, traces back to California's 1872 Civil Code. Companies there rely on trade secret law to protect confidential information instead. Apple is headquartered in Cupertino, California.
How do courts decide what is a trade secret?
Under the federal Defend Trade Secrets Act of 2016, information qualifies when it derives economic value from not being generally known and its owner has taken reasonable measures to keep it secret. Those measures can include confidentiality agreements, restricted access, and marked documents. The law also gave owners the right to sue in federal court. Courts generally treat an employee's general skills and knowledge as the employee's own.
How did OpenAI end up building hardware?
OpenAI announced in May 2025 that it would acquire io, a device company co-founded by designer Jony Ive, in a deal valued at about 6.5 billion dollars. Ive had previously led design at Apple, where he shaped products including the iPhone and iPad. OpenAI has described its aim as building devices designed around AI.
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