On Friday, Apple filed a lawsuit against OpenAI and its hardware chief, Tang Tan, in US district court in San Jose, accusing them of stealing trade secrets. The lawsuit claims that Tan, a former Apple executive with 24 years at the company, encouraged employees to take proprietary technology and confidential designs when leaving Apple for OpenAI.
Allegations of Misappropriation and Recruitment Tactics
The lawsuit details that Tan allegedly coached recruits on how to bypass Apple’s data security protocols. Apple asserts that OpenAI's hardware division is built on a foundation of misappropriated trade secrets, stating, “OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”
OpenAI spokesperson Drew Pusateri responded, saying, “We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere.” Meanwhile, Apple is committed to defending its innovations, according to spokesperson Hannah Smith.
History of the Apple and OpenAI Partnership
Apple and OpenAI have had a partnership since 2024, when they announced a deal to distribute ChatGPT across Apple devices. However, the relationship has soured, leading Apple to increasingly rely on Google’s Gemini AI technology for its AI models.
OpenAI has reportedly hired over 400 former Apple employees, including several key figures in the development of AI-powered consumer devices. This has raised concerns within Apple regarding the security of its proprietary technology.
Details of the Lawsuit and Investigation Findings
Apple’s investigation into the alleged theft revealed that former employee Chang Liu had not returned his company-issued laptop and communicated with others about still having access to Apple’s internal file-sharing system. The lawsuit claims Liu downloaded dozens of confidential files, including a presentation on circuit board manufacturing.
Furthermore, Apple alleges that Tan directed job candidates still employed at Apple to bring actual Apple parts to interviews at OpenAI to extract more confidential information. The lawsuit highlights a concerning pattern of behavior among departing employees, including avoiding security exit processes.
- Key Allegations in the Lawsuit:
- Tang Tan coached recruits on how to evade security protocols.
- Former employees took proprietary technology to OpenAI.
- OpenAI approached Apple suppliers to replicate technology.
As the legal battle unfolds, it may become one of the most significant intellectual property disputes in Silicon Valley, reminiscent of the Waymo vs. Uber case in 2017.
🤖 This article was rewritten by Feed and Figures' editorial AI from a report originally published by Wired. Facts and quotes are preserved from the original; the rewrite focuses on clarity and structure. For the unedited original, see the source link below.
