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Apple sues OpenAI, alleging artificial intelligence company stole trade secrets

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Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of stealing trade secrets to launch its own hardware business. The complaint, filed on Friday, alleges that OpenAI poached Apple employees who handed over confidential material, product designs, and other tightly held information. An Apple spokesperson stated that significant evidence has emerged showing OpenAI employees wrongfully took Apple’s secret and confidential information regarding unreleased technologies and processes.

The lawsuit marks a sharp reversal for the two tech giants, which announced a major partnership in 2024 to integrate OpenAI's ChatGPT into Apple's operating systems for iPhones, iPads, and Macs. However, tensions began simmering last year when OpenAI spent $6.4 billion to acquire io Products, a hardware startup founded by former Apple design chief Jony Ive. Apple’s recent showcase of its revamped voice assistant Siri used Google’s Gemini AI model instead of ChatGPT, hinting at growing rifts.

The suit names Tang Yew Tan, OpenAI’s chief hardware officer and a former Apple vice president, accusing him of taking information about Apple suppliers to OpenAI. Apple alleges that Tan directed job candidates still working at Apple to bring actual parts from Apple to interviews for show-and-tell sessions to elicit more confidential information. Another former Apple employee, Chang Liu, is accused of taking an Apple laptop when he left and using an authentication bug to breach Apple’s internal network, downloading dozens of confidential hardware-related files.

Apple claims that OpenAI’s nascent hardware business rests on misappropriated trade secrets, seeking damages and a court order to block OpenAI from possessing or using its proprietary information. This legal battle could disrupt the prior partnership between the two companies and set a precedent for trade secret protections in the rapidly evolving AI and hardware sectors. The case also underscores the fierce competition for talent and intellectual property in the tech industry.

An Apple spokesperson emphasized the company’s commitment to protecting its intellectual property and the hard work of its teams. OpenAI spokesperson Drew Pusateri said the company is reviewing the filing and has no interest in other companies’ trade secrets, remaining focused on building innovative technology. The lawsuit highlights the increasingly adversarial relationship between two former partners as they compete in overlapping markets.

Looking ahead, the outcome of this case could influence how tech companies handle employee mobility and confidentiality. As AI firms expand into hardware, legal scrutiny over employee movements and data security will likely intensify. The court’s decision may shape industry practices regarding non-compete agreements and the protection of trade secrets in high-tech environments.

Read original article →Source: guardian-ai