On Friday, Apple accused OpenAI of stealing trade secrets in a significant development concerning their partnership. Filed in a California federal court, Apple claims that OpenAI actively encouraged Apple employees to share confidential information and provided guidance on evading scrutiny when applying for jobs at the AI firm.
The lawsuit emphasizes that the case centers around former Apple employees allegedly misappropriating the company's trade secrets for the benefit of OpenAI. Apple seeks legal remedy to prevent this alleged theft, stating, “This case is about Apple’s former employees stealing Apple’s trade secrets for the benefit of OpenAI.”
Named as defendants in the lawsuit are two former Apple employees now at OpenAI: Tang Tan, who contributed to the designs of the iPhone, Apple Watch, and iPod, and currently serves as OpenAI's chief hardware officer, and Chang Liu, a former electrical engineer responsible for sensitive product developments at Apple prior to his recent joining of OpenAI.
In response to the filing, OpenAI indicated they are reviewing the lawsuit, with spokesperson Drew Pusateri asserting that the company has no interest in the trade secrets of other companies, maintaining a focus on innovative technology that empowers individuals globally.
The lawsuit alleges that OpenAI is seeking shortcuts in its hardware endeavors, which the company has yet to clarify. They referenced this initiative as a way to revolutionize interactions with AI, transcending traditional products and interfaces, similar to the introduction of screen-free talking speakers by Amazon and Google. However, Apple claims this venture is fundamentally flawed due to its reliance on stolen trade secrets.
Apple's investigation reportedly revealed a systematic pattern of trade secret theft by former employees transitioning to roles at OpenAI. The document outlines specific accusations, including that Liu accessed confidential hardware-related files after his departure from Apple. Additionally, it alleges that Tan instructed job candidates still at Apple to bring actual Apple parts to interviews at OpenAI.
Initially, Apple reached out to OpenAI in February to voice concerns regarding potential breaches of confidentiality, but stated that they received no response. An Apple spokesperson confirmed the company's commitment to defending its intellectual property and innovations.
As context, Apple sought early assistance from OpenAI several years prior, as it lagged in the AI landscape following the rise of ChatGPT. Their partnership began in 2024, aiming to integrate ChatGPT as an AI-driven answer engine on the iPhone to supplement Siri's capabilities. However, this collaboration has recently shifted towards rivalry.
OpenAI has actively recruited notable former Apple figures, including Jony Ive, to lead a project focused on creating an AI-powered device, which analysts speculate could rival Apple's offerings. This development followed the announcement of a secret hardware collaboration with Ive, involving the acquisition of io Products, a company co-founded by Ive, Tan, and others, for nearly $6.5 billion.
This acquisition sparked a separate lawsuit from a lesser-known startup, iyO Inc., citing trademark infringement against Ive and OpenAI CEO Sam Altman due to name similarities and past interactions. This startup also filed claims of trade secret theft against Tan, compounding OpenAI's legal challenges.
Furthermore, Apple’s lawsuit also names io Products as a defendant. Attorneys representing io Products and Tan directed comments about the case to OpenAI. Notably, this lawsuit unfolds as OpenAI explores potential public offerings and faces intensified competition from other tech rivals such as Anthropic and Google. Despite some streamlining of its business focus, OpenAI remains committed to consumer hardware initiatives, with plans for a rollout later this year.
