OpenAI denies merit in Apple trade secret lawsuit

On Friday, Apple filed a 41-page lawsuit in U.S. District Court for the Northern District of California accusing OpenAI of orchestrating the theft of trade secrets and confidential information through employees who previously worked at the iPhone maker. The complaint names OpenAI Chief Hardware Officer Tang Tan as a central figure. Tan joined OpenAI after spending 24 years at Apple, where he rose to vice president of product design for the iPhone and Apple Watch—roles that gave him access to some of Apple's most sensitive hardware and design information.

Apple alleges that its internal investigation uncovered evidence that OpenAI and its partners used the company's confidential information while developing their own hardware product. The lawsuit is part of a broader competitive escalation: Bloomberg reported on Tuesday that OpenAI is building a mobile, screen-free smart speaker designed as a "humanlike AI companion" for the home. The device has no display but includes moving mechanical elements and is being developed with input from several former Apple engineers who worked on iPhone and Mac products.

On Tuesday, OpenAI issued its first substantive response to the allegations. "While we take these allegations seriously, we're not aware of any evidence that this complaint has merit," the company said in a statement shared by Bloomberg reporter Ed Ludlow on X. OpenAI framed its position around principle: "We believe in fair competition and allowing people the freedom to work wherever they choose, and we're focused on building innovative technology that empowers people everywhere." This statement followed an earlier, shorter response hours after Apple's filing, in which OpenAI said it had "no interest in other companies' trade secrets." The dispute underscores the tension between talent mobility and intellectual property protection as AI companies—particularly OpenAI, which is entering the hardware market following its acquisition of Jony Ive's startup io—compete for experienced engineers from established tech firms.

Apple's lawsuit centers on a fundamental tension in the tech industry: the mobility of talented engineers between rival companies. Tang Tan's 24-year tenure at Apple, where he held senior product design roles for flagship products like the iPhone and Apple Watch, makes him a high-value hire for OpenAI—but also a potential conduit for confidential knowledge. Apple's complaint alleges that this mobility, combined with OpenAI's simultaneous push into hardware (underscored by the io acquisition), created an opportunity for the transfer of trade secrets.

OpenAI's response frames the dispute around principles rather than specific denials: the company asserts it has "no interest in other companies' trade secrets" and champions employee freedom. However, the parallel reporting on OpenAI's smart speaker project—a device with no screen but moving mechanical elements, built by former Apple engineers—suggests the two sides have fundamentally different views about what constitutes permissible knowledge transfer versus misappropriation. The lawsuit is the first time OpenAI has directly addressed the merits of Apple's allegations, marking a shift from its initial statement hours after the complaint was filed.