Apple sues OpenAI for trade secret theft

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6 Min Read

Apple filed a lawsuit in opposition to OpenAI on Friday for alleged theft of commerce secrets and techniques and breach of contract.

The iPhone maker claims the fraud reveals a sample of theft from OpenAI staff who beforehand labored at Apple and was directed by senior OpenAI executives, together with chief {hardware} officer Tang Tan.

The lawsuit, filed within the U.S. District Courtroom for the Northern District of California, accuses Tan of utilizing code names for confidential Apple tasks in the course of the OpenAI hiring course of, asking job candidates to deliver Apple {hardware} parts to interviews, teaching departing Apple staff on tips on how to circumvent the corporate’s safety procedures, and asking for particulars concerning the firm’s unreleased merchandise.

Previous to becoming a member of OpenAI, Tan spent 24 years at Apple, most just lately serving as vice chairman of product design for iPhone and Apple Watch.

The accusation comes at a time when OpenAI is rumored to be growing its first {hardware} product that can doubtless compete with the iPhone. In April, trade analyst Ming-Chi Kuo urged the system may very well be a smartphone that depends on AI brokers quite than apps. If true, this is able to signify one of many greatest threats to Apple’s core {hardware} enterprise up to now.

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Former Apple lead designer Jony Ive’s system startup io was acquired by OpenAI in a $6.5 billion deal final yr to assist the AI ​​firm with its {hardware} ambitions. io’s title was listed within the submitted paperwork, however Ive’s title was not.

Tan just isn’t the one OpenAI worker talked about within the new grievance. Apple additionally alleges that Chang Liu, who labored at Apple for eight years as a senior methods electrical engineer, did not return an Apple-issued laptop computer after he left to affix OpenAI in 2026 and used the pc to obtain confidential Apple technical paperwork.

Apple stated in its grievance that the stolen paperwork contained details about unreleased applied sciences, options and merchandise, together with technical specs, engineering displays and proprietary challenge knowledge.

Liu can also be accused within the lawsuit of sharing confidential Apple data with different Apple staff making use of for jobs at OpenAI and advising no less than considered one of them what to review earlier than an interview.

Apple despatched a letter to OpenAI in February expressing its issues, however obtained no response, the corporate stated in its grievance.

The previous staff’ actions have been a part of OpenAI’s technique to extract Apple’s confidential data, which they allege included requiring Apple staff to deliver designs and prototypes to interviews and reply questions on issues like parts and the seller choice course of.

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Apple says its ongoing investigation has revealed that OpenAI and its companions have been even utilizing Apple’s confidential data because the AI ​​mannequin maker developed its personal {hardware} merchandise. For instance, the submitting mentions proprietary steel ending expertise that OpenAI allegedly used to mislead companions into believing it had Apple’s permission.

Like many expertise firms, Apple usually investigates doable theft of commerce secrets and techniques or different inappropriate habits by analyzing communications made on company-owned units and studying server logs. Taking this case to court docket will give Apple the chance to be taught extra concerning the extent of the alleged manipulation via the authorized discovery course of.

Apple is asking the court docket to ban OpenAI from utilizing or disclosing commerce secrets and techniques, require Apple to return confidential Apple supplies, and protect proof associated to the lawsuit.

“That is simply the tip of the iceberg. Apple has no visibility into what is going on on behind closed doorways at OpenAI, the place such misconduct is normalized and modeled by its management,” the submitting stated. “As a pure outcome, OpenAI’s nascent {hardware} enterprise is now constructed on probably the most shaky of foundations, rotten to the core by its unlawful reliance on misappropriated commerce secrets and techniques.”

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Apple additionally stated in a ready assertion:

At Apple, our groups are consistently growing breakthrough applied sciences to create the world’s greatest services, and we take defending their work and mental property very critically. Vital proof has just lately come to gentle suggesting that people employed by OpenAI have improperly eliminated confidential details about Apple’s undisclosed applied sciences, processes, and merchandise. We all the time defend crew efforts and innovation and take all applicable measures to this finish.

OpenAI was contacted for remark. The corporate responded after publication, pointing to a public assertion shared with X that stated, “We’re not involved in different firms’ commerce secrets and techniques. We stay targeted on constructing revolutionary expertise that empowers folks in every single place.”

The submission is obtainable right here or might be learn beneath.

This story is in growth and will probably be up to date. Initially printed at 1:32 PM PT.

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