Apple sues OpenAI alleging trade secret theft, says scheme was 'at every level'

In a dramatic turn of events, Apple has initiated legal action against OpenAI in a federal court located in Northern California, accusing the artificial intelligence company of stealing its trade secrets. Apple claims that OpenAI leveraged its intellectual property to create its own consumer hardware offerings. The lawsuit outlines that the alleged theft of confidential information occurred at multiple levels within OpenAI, involving everyone from its technical team to its Chief Hardware Officer. In their legal documents, Apple asserts, "OpenAI has been stealing Apple's trade secrets and confidential information." This legal battle marks a significant shift in the relationship between the two tech giants, who previously collaborated in a high-profile partnership back in 2024. This partnership saw the integration of ChatGPT into Apple's operating system, and OpenAI’s CEO Sam Altman even visited Apple's headquarters for the announcement. However, tensions have escalated since OpenAI revealed its plans to venture into hardware, particularly after acquiring Jony Ive's company, IO Products, for $6.4 billion last year. As part of the allegations, Apple points to instances involving former employees who have transitioned to OpenAI. Specifically, they claim that Tang Tan, OpenAI's Chief Hardware Officer and a former Apple vice president, instructed candidates still employed at Apple to disclose company secrets during interviews. The lawsuit indicates that Tan encouraged these candidates to bring "actual parts" from Apple to showcase during their interviews, ostensibly to extract further confidential information. Additionally, Apple alleges that OpenAI provided guidance to departing employees on how to circumvent security measures when leaving the company. One such former employee, Chang Liu, is accused of stealing an Apple laptop, and he is also named in the lawsuit. Furthermore, Apple claims that OpenAI has been soliciting hardware manufacturers to execute a metal finishing technique originally developed by Apple, misleading them into believing they had Apple's authorization to do so. An Apple representative stated, "Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes, and products." The lawsuit also includes IO Products as a defendant. While OpenAI has not disclosed details about its upcoming hardware products, Altman mentioned in November that the company had completed its first prototypes. As the situation unfolds, it remains to be seen how this lawsuit will impact the existing partnership between Apple and OpenAI, particularly regarding the integration of ChatGPT into Apple's offerings. Apple is seeking damages, injunctions, and a mandate for OpenAI to cease using its trade secrets.