Apple Sues OpenAI in Federal Court, Alleging It Stole Trade Secrets

[Financial News]  

Apple Inc. filed a lawsuit against AI startup OpenAI in the U.S. District Court for the Northern District of California on the 10th, local time.
In the complaint, Apple alleged that OpenAI stole trade secrets by misappropriating intellectual property to develop its own consumer electronics.
According to CNBC, Apple said, "One thing is clear: OpenAI has been stealing Apple's trade secrets and confidential information through coordination with business partners at every level, from technical staff to the chief hardware officer."
Apple had maintained a high level of cooperation with OpenAI after integrating ChatGPT into the iPhone operating system in 2024. Sam Altman, OpenAI's CEO, also visited Apple's headquarters for the event announcing the move at the time.
But the close relationship began to fray last year as OpenAI entered the hardware market. In May last year, OpenAI announced plans to acquire Jony Ive's startup, IO Products, for $6.4 billion.
Apple, apparently displeased, developed a new Siri update set to be unveiled this fall based on Google Gemini rather than ChatGPT.
Most of Apple's claims are tied to former employees who interviewed for or joined OpenAI.
Apple claimed that Tang Tan, OpenAI's chief hardware officer and a former Apple vice president, encouraged Apple employees to interview at OpenAI and obtained Apple's trade secrets in the process. Tan was also named as a defendant in the lawsuit.
In the complaint, Apple said, "He even encouraged applicants who still worked at Apple to bring 'real parts' to 'Show and Tell' interview sessions," adding that "he and his team at OpenAI were able to extract Apple's confidential information."
The complaint also said OpenAI told departing Apple employees how to bypass security procedures, and it alleged that former employee Chang Liu, who joined OpenAI, stole an Apple laptop computer. Liu was also named as a defendant.
Apple further alleged in the complaint that OpenAI asked hardware partners to apply metal finishes using technology invented by Apple, and that it "misled partners into believing they were doing so with Apple's permission."

dympna@fnnews.com Song Kyung-jae Reporter