Apple Sues OpenAI, Former Employees Over Alleged Theft of Trade Secrets
Apple has filed a federal lawsuit against OpenAI, its design subsidiary io Products and two former Apple employees, alleging the artificial intelligence company unlawfully obtained confidential information through the recruitment of key staff.
The lawsuit, filed on Friday, accuses OpenAI of engaging in what Apple described as “a pattern of theft” involving sensitive product development information and proprietary business data.
According to the complaint, former Apple employees Chang Liu, a senior electrical engineer who spent eight years at the company, and Tang Yew Tan, a former vice president of design for the iPhone and Apple Watch with 24 years of service, allegedly transferred confidential company information before leaving Apple. Tan currently serves as OpenAI’s chief hardware officer.
Apple also named io Products, the hardware design startup founded by former Apple design chief Jony Ive and acquired by OpenAI last year, as a defendant in the suit.
The technology giant claims OpenAI gained access to sensitive information relating to unreleased products, manufacturing processes, strategic partnerships and product development through the hiring of former Apple employees. The company further alleged that OpenAI sought additional confidential information during recruitment interviews with current Apple staff.
According to the lawsuit, some OpenAI interviewers allegedly encouraged prospective hires to bring Apple hardware components to interviews as “show and tell” items.
Apple argued that the defendants collectively exploited its confidential information to accelerate OpenAI’s planned expansion into the consumer hardware market.
The legal action marks a sharp deterioration in relations between the two companies. Apple previously integrated ChatGPT into some of its products before later shifting many of its artificial intelligence features to Google’s Gemini platform. Earlier this year, OpenAI Chief Executive Sam Altman publicly praised outgoing Apple CEO Tim Cook after he announced plans to step down.
Responding to the lawsuit, OpenAI spokesperson Drew Pusateri said the company has no interest in competitors’ trade secrets and is reviewing Apple’s allegations.
“We have no interest in other companies’ trade secrets. We are focused on building innovative technology that empowers people everywhere.”
Apple said it possesses substantial evidence to support its claims and disclosed that it had attempted to raise its concerns with OpenAI in February but received no response.
The company is asking the court to immediately prevent OpenAI from using or obtaining any of its alleged confidential information. It is also seeking unspecified monetary damages.
The lawsuit comes as OpenAI prepares to launch its first consumer hardware product, reportedly an AI-focused keyboard, and advances plans to become a publicly traded company.
