OpenAI CEO Sam Altman speaks during the Microsoft Build conference at the Seattle Convention Center Summit Building in Seattle, Washington on May 21, 2024.. Credit: AFP

Apple on Friday sued OpenAI, accusing the artificial intelligence company of orchestrating a campaign to steal the iPhone maker’s trade secrets as it tries to develop its own consumer hardware device.

The lawsuit — filed in a federal court in San Jose, California — paints a picture of an aggressive effort by OpenAI to poach Apple employees and extract confidential information to build its own device.

The lawsuit marks a dramatic escalation in tensions between two companies that partnered in 2024 to integrate ChatGPT into Apple’s products.

That relationship has since deteriorated. Bloomberg reported in May that OpenAI was itself considering legal action against Apple, alleging the tech giant had failed to adequately promote the ChatGPT integration.

“At every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information,” Apple said in the 41-page complaint.

The suit will significantly complicate OpenAI’s plans for a hotly anticipated initial public offering.

The company, valued at roughly $852 billion, has raised more than $180 billion from investors, and expanding into consumer hardware was seen as a major opportunity for growth.

“Significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes and products,” the company said in a statement to AFP.

“We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so.”