Apple sues OpenAI, two former employees for trade secrets theft

Apple filed a lawsuit Friday against OpenAI and two former employees, accusing them of misappropriating the iPhone maker's trade secrets to aid OpenAI's entry into consumer hardware. The complaint, lodged in the U.S. District Court for the Northern District of California, alleges a coordinated effort to steal confidential information, including product designs, manufacturing processes, and supply chain strategies.

The suit names former Apple senior system electrical engineer Chang Liu and ex-vice president of product design for iPhone and Apple Watch Tang Yew Tan, along with OpenAI Foundation, OpenAI Group PBC, and io Products. This move significantly heightens the simmering tension between Apple and the ChatGPT creator.

Apple claims Liu downloaded "dozens of Apple's confidential hardware-related files" after failing to return a company laptop and using an authentication bug to access internal networks. The company also alleges Tan emailed himself information about Apple suppliers and internal industry summaries before leaving, using confidential information to benefit OpenAI.

This legal battle underscores the fierce competition for talent and proprietary technology in the rapidly advancing field of artificial intelligence. The lawsuit follows Apple's 2024 integration of its "Apple Intelligence" technology and its partnership allowing users to access ChatGPT via Siri. OpenAI's recent acquisition of hardware startup io Products further signals its ambition to expand into consumer hardware.