Apple Sues OpenAI for Trade Secret Theft
Apple has sued OpenAI in a California federal court, accusing the ChatGPT maker of using current and former employees to steal hardware designs as it prepares to launch AI-focused consumer devices. The lawsuit, filed on Friday, names OpenAI’s chief hardware officer Tang Tan and engineer Chang Liu.
According to Apple, the misconduct is "normalised and exemplified by leadership." The company claims:
- Tang Tan, who spent 24 years at Apple including as VP of product design for the iPhone and Apple Watch, shared confidential supplier information with OpenAI before leaving.
- Tan instructed Apple employees to bring “digital designs and prototypes” to interviews at OpenAI for “show and tell sessions.”
- Over 400 former Apple employees now work at OpenAI.
Chang Liu, a former electrical engineer on Apple’s most sensitive programs, allegedly:
- Failed to return a work device.
- Used another Apple employee’s computer to access trade secrets.
- Coached the employee on copying files while evading security.
- Exploited a vulnerability in Apple’s network storage after leaving.
Apple describes this as "the tip of the iceberg" and claims OpenAI’s hardware business "rests on the shakiest of foundations" due to its illegal use of trade secrets. They are seeking an injunction, return of trade secrets, and damages.
The Apple-OpenAI relationship has been deteriorating since OpenAI initiated legal action over a failed ChatGPT-Siri partnership. This lawsuit escalates the conflict from commercial to criminal allegations.
OpenAI denies any interest in other companies’ trade secrets and states its focus on building innovative technology. The startup recently acquired Jony Ive’s io studio for $6.4 billion, signaling its intent to compete with Apple’s iPhone.
OpenAI faces scrutiny from investors over its $852 billion valuation as it has been surpassed by Anthropic. Additionally, it is under investigation by 42 state attorneys general.