Apple sues OpenAI, accusing ChatGPT maker of stealing trade secrets

Apple has accused OpenAI of stealing trade secrets as it develops its own hardware for ChatGPT, marking a significant rift between the tech giants. The lawsuit, filed in a California federal court, claims OpenAI enticed Apple employees it was recruiting to divulge confidential information and even advised them on how to avoid detection.

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This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI. Apple brings this suit to put a stop to it.

"This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," the filing states. "Apple brings this suit to put a stop to it." Two former Apple employees now working for OpenAI are named as defendants: Tang Tan, who was instrumental in designing the iPhone, Apple Watch, and iPod and now serves as OpenAI's chief hardware officer, and Chang Liu, a former electrical engineer entrusted with sensitive product development before joining OpenAI earlier this year.

OpenAI spokesperson Drew Pusateri responded, "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." The lawsuit alleges OpenAI is seeking shortcuts in hardware development, aiming to create a new way to interact with AI beyond traditional products. Apple claims this effort is built partly on stolen knowledge from Apple, stating, "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."

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We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere.

Apple initiated its investigation after suspecting confidential information had been compromised, uncovering what it describes as a "pattern of theft" by former employees now at OpenAI. The suit alleges Liu and Tan accessed confidential files while at OpenAI, with Liu reportedly downloading hardware-related files from an Apple-issued device he kept after leaving. Tan is accused of directing job candidates still at Apple to bring "Actual parts" from the company to their interviews at OpenAI. Apple stated it approached OpenAI in February with its concerns, but received no response.

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OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.