Apple sues OpenAI over alleged trade secret theft

Apple has sued OpenAI, alleging it orchestrated a campaign to obtain confidential information about unreleased products through former employees. The lawsuit seeks the destruction of allegedly misappropriated materials and accuses OpenAI of encouraging employees to retain sensitive company information.

New Delhi: Apple has sued leading artificial intelligence (AI) company OpenAI and its hardware chief, alleging a coordinated campaign to steal information related to its upcoming products.

The iPhone maker alleged that OpenAI encouraged Apple employees to divulge information, components, drawings and other materials related to unreleased products, according to multiple reports.

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In a lawsuit filed in the Northern District of California, Apple alleged that Tang Tan, OpenAI’s chief hardware officer, encouraged employees to share information about Apple’s upcoming products during job interviews.

Tan previously served as Apple’s Vice President of Product Design, leading the development of the iPhone, Apple Watch, AirPods and several other products in the company’s hardware engineering division.

The lawsuit also named former iPhone hardware engineer Chang Liu, alleging that he provided confidential materials, according to reports.

Apple alleged that Liu developed hardware for OpenAI by illegally accessing dozens of Apple’s confidential hardware-related files, including detailed information on unreleased products and engineering presentations.

The lawsuit further alleged that OpenAI “actively coached” several employees on how to manage their exits so that access to confidential files would not be lost.

OpenAI dismissed the allegations, saying it has “no interest in other companies’ trade secrets and remains focused on building innovative technology that empowers people everywhere.”

The two companies have worked closely in recent years, with OpenAI providing key technology for Apple Intelligence and the Siri digital assistant.

However, tensions reportedly grew over the past year, fuelled by OpenAI’s decision to enlist former Apple design chief Jony Ive to help develop new devices.

The lawsuit further alleged that, just months ahead of its initial public offering (IPO), OpenAI had successfully recruited around 400 Apple employees.

“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 alleged in the lawsuit.

Apple has sought a court order directing OpenAI to destroy any proprietary materials and redesign upcoming products without using the allegedly copied technology.