Apple sues OpenAI for trade secrets violations

Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of systematically stealing its trade secrets and confidential information. The iPhone maker alleges that OpenAI orchestrated a campaign to poach Apple employees and extract proprietary data as it works to develop its own consumer hardware device.

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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

The lawsuit, lodged in a federal court in San Jose, California, details an aggressive effort by OpenAI. "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 stated in its 41-page complaint.

The legal action is expected to significantly complicate OpenAI's plans for a highly anticipated initial public offering. The company, valued at approximately $852 billion, has raised over $180 billion from investors, and expanding into consumer hardware was viewed as a key growth opportunity.

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We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so

Apple is seeking damages and an injunction to prevent OpenAI from using its confidential information. The company stated the lawsuit became necessary after OpenAI failed to address concerns Apple raised in February. The suit names OpenAI, its hardware subsidiary io Products, and two former Apple employees: Tang Yew Tan, now OpenAI's chief hardware officer, and engineer Chang Liu.

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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