Apple sues OpenAI, alleging theft of trade secrets for AI hardware

Apple has filed a lawsuit against OpenAI and two former employees, accusing them of stealing trade secrets to develop artificial intelligence hardware. The complaint, lodged in a California federal court, alleges a "coordinated effort" to pilfer confidential information, including product designs and manufacturing processes.

The tech giant claims that former Apple engineers Chang Liu and Tang Yew Tan illicitly accessed and downloaded proprietary files. Liu allegedly used a bug to access Apple's internal network and download dozens of hardware-related files, while Tan is accused of emailing himself supplier information and internal industry summaries before leaving the company.

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it is not surprising that some of them have knowledge of its confidential information.

Apple further alleges that Tan encouraged other Apple employees to bring company parts to job interviews at OpenAI for "show and tell" sessions. The lawsuit highlights that over 400 former Apple employees now work for OpenAI, suggesting a pattern of knowledge transfer.

OpenAI, which has described its hardware initiative as a new way to interact with AI beyond traditional products, has not yet responded to the allegations. The lawsuit contends that the company's push for a physical AI embodiment is partly based on information misappropriated from Apple.

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That OpenAI now employs people who were once entrusted with Apple’s trade secrets does not entitle OpenAI to use that information to jumpstart its hardware efforts.