Apple takes OpenAI to court for alleged theft of trade secrets: Android Authority


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Calvin Wankhede / Android Authority

TL;DR

  • Apple is suing OpenAI, accusing the artificial intelligence company of developing its hardware ambitions using confidential Apple trade secrets.
  • The lawsuit names OpenAI, io Products, and former Apple employees Tang Tan and Chang Liu, alleging they helped transfer confidential Apple information.
  • Apple claims the alleged misconduct was coordinated, not isolated, and involved supplier data, manufacturing and proprietary product development.

apple relationship with OpenAI just took a dramatic turn. The tech giant, which partnered to bring the popular AI-powered chatbot to the iPhone two years ago, is now suing OpenAI, alleging that its expansion into AI hardware was based on confidential Apple trade secrets allegedly stolen by former employees.

Bloomberg reports that Apple lawsuit names OpenAI; its hardware division, io Products; and former Apple employees Tang Tan and Chang Liu. Tan, who now serves as OpenAI’s director of hardware following the company’s acquisition of Jony Ive’s io products, previously helped develop products such as the iPhone and Apple Watch. Liu joined OpenAI earlier this year after working as an electrical engineer at Apple.

According to the complaintApple believes the alleged theft was not limited to a few dishonest employees. The company says OpenAI carried out what it calls a coordinated effort to obtain Apple’s proprietary product development, manufacturing and supplier information to accelerate its hardware ambitions. Apple said Tan allegedly encouraged job applicants to bring Apple components or proprietary information to interviews, while Liu allegedly kept confidential Apple files when he left the company and accessed confidential engineering data without authorization.

The case concerns OpenAI’s hardware expansion plans. The company has been working with former Apple designer Jony Ive in a new category of AI devices since the acquisition of io Products. Apple says those efforts have been unfairly guided by insights drawn from its internal development process, rather than built independently.

Apple is seeking damages and an injunction to prevent OpenAI from using or profiting from the allegedly misappropriated trade secrets. The lawsuit also demands the return or destruction of any confidential Apple materials still in the defendants’ possession.

As of this writing, OpenAI has not publicly responded to the allegations. Regardless of the outcome of the case, the lawsuit intensifies the race to build AI hardware, where the fight is no longer just about smarter models but also over who owns the ideas behind the devices that will power them.

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