Unprecedented legal dispute: Apple sues OpenAI for stealing trade secrets

Apple has initiated an unprecedented legal battle, filing a lawsuit against OpenAI and accusing the artificial intelligence company of a "coordinated campaign" to steal trade secrets. The iPhone maker alleges that OpenAI illicitly obtained confidential information concerning Apple's future devices.

The lawsuit, filed in the U.S. District Court for the Northern District of California, claims that OpenAI, and specifically its head of devices Tang Tan, acquired sensitive materials and information about Apple's developing products. Apple asserts that OpenAI incentivized its employees to provide confidential information, engineering drawings, components, and technical files for use in developing AI-driven devices.

Tang Tan, a former Apple executive who oversaw the design of products like the iPhone and Apple Watch, is named in the suit. The legal action represents a stark turnaround from the companies' prior collaboration, where OpenAI's technologies, including ChatGPT, were integrated into Apple's "Apple Intelligence" platform and Siri.

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At various levels, from engineers to head of devices, and in coordination with business partners, OpenAI has worked to steal Apple’s trade secrets and confidential information.

Apple claims that over 400 former employees have moved to OpenAI, viewing this as part of a strategy to acquire talent related to its future device development. The lawsuit states, "At various levels, from engineers to head of devices, and in coordination with business partners, OpenAI has worked to steal Apple’s trade secrets and confidential information." Apple argues that OpenAI's hardware endeavors are built on an "unstable foundation" due to its alleged illegal use of stolen information.

The suit also accuses former Apple employee Zhang Liang, who joined OpenAI in January, of downloading dozens of confidential files related to unannounced devices before leaving Apple. Apple contends that OpenAI provided guidance to employees planning to leave, advising them to delay notifying Apple of their resignations to maintain access to sensitive data.

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