Apple has sued OpenAI, accusing the ChatGPT creator of stealing trade secrets linked to upcoming products.

The lawsuit was filed on Friday in the Northern District of California.

Apple alleges that OpenAI encouraged Apple employees to share confidential information, components, drawings and other materials related to unreleased products.

The iPhone maker claims this formed part of OpenAI’s push to develop its own suite of devices.

Apple also named OpenAI chief hardware officer Tang Tan in the lawsuit.

Tan previously worked at Apple as vice-president of product design, where he helped lead development of products including the iPhone, Apple Watch and AirPods.

OpenAI denies wrongdoing

OpenAI rejected the allegations.

In a statement, the company said it has “no interest in other companies’ trade secrets”.

“We remain focused on building innovative technology that empowers people everywhere,” an OpenAI spokesperson said.

The dispute marks a sharp turn in the relationship between the two companies.

OpenAI has supplied technology to Apple’s Intelligence platform and Siri.

But tensions have reportedly grown as OpenAI moves deeper into hardware development and hires former Apple employees.

According to Apple’s lawsuit, more than 400 former Apple workers are now employed by OpenAI.

Former Apple engineer accused

Apple is asking the court to order OpenAI to stop the alleged conduct and destroy any proprietary materials.

It also wants OpenAI to redesign upcoming products so they do not include Apple technology.

The lawsuit names former iPhone hardware engineer Chang Liu, who joined OpenAI in January.

Apple alleges Liu accessed and downloaded confidential hardware-related files while working on OpenAI hardware.

The company claims those files included information about unreleased products, engineering presentations, technical specifications and proprietary project data.

Apple also alleges OpenAI coached departing employees on how to avoid being immediately removed from Apple systems.

AI device race intensifies

The case highlights the growing race to build AI-powered devices.

Apple, OpenAI, Meta and others are working on gadgets that put artificial intelligence at the centre of daily use.

Apple is developing products including smart glasses, pendants and camera-equipped AirPods.

OpenAI strengthened its hardware ambitions when it acquired io Products, a device startup co-founded by former Apple design chief Jony Ive and Apple design veteran Evans Hankey.

Apple said it tried to resolve the dispute outside court months ago but did not receive a response.

The company is now seeking a jury trial.