Apple has filed a lawsuit against OpenAI in federal court in Northern California, accusing the AI startup of stealing trade secrets and confidential information to develop consumer hardware products. According to Apple, the scheme involved staff “at every level” intent on hijacking Apple’s secret designs and tecehnology.
CNBC reports that Apple has taken legal action against OpenAI, alleging widespread theft of the iPhone maker’s intellectual property in a lawsuit that marks a dramatic shift in the relationship between the two technology giants. The complaint, filed in federal court in Northern California, claims that OpenAI systematically obtained Apple’s proprietary information across multiple levels of its organization.
In its legal filing, Apple stated that the alleged theft occurred at every level of OpenAI’s operations. “This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information,” the company said in court documents.
The lawsuit represents a stunning reversal for the two companies, which announced a high-profile partnership in 2024. That collaboration integrated ChatGPT into the iPhone’s operating system, with OpenAI CEO Sam Altman visiting Apple’s headquarters for the announcement. However, the relationship between the firms has deteriorated since OpenAI revealed plans to enter the hardware industry.
A major catalyst for the breakdown came when OpenAI acquired IO Products, the startup founded by former Apple designer Jony Ive, for $6.4 billion. IO Products is also named as a defendant in the current lawsuit. While OpenAI has not publicly announced specific details about its hardware products, Altman indicated in November that the company had completed its first prototypes.
Apple’s complaint centers largely on allegations involving former Apple employees who have interviewed with or joined OpenAI. The lawsuit specifically names Tang Tan, OpenAI’s hardware chief and a former Apple vice president, as a defendant. According to Apple’s allegations, Tan directed current Apple employees who were interviewing at OpenAI to share confidential company information as part of the hiring process.
“He has directed job candidates still working for Apple to bring ‘actual parts’ from Apple to their interviews for ‘show and tell’ sessions in which he and his team at OpenAI can elicit still more Apple confidential information,” Apple stated in the filing.
The lawsuit also alleges that OpenAI provided guidance to departing Apple employees on how to circumvent security protocols when leaving the company. Additionally, Apple claims that Chang Liu, another former employee who joined OpenAI, stole an Apple laptop. Liu is named as a defendant in the suit.
Apple further alleges that OpenAI has been requesting hardware manufacturing partners to implement a metal finishing technique that Apple developed, while allegedly misleading these partners into believing they had Apple’s authorization to use the proprietary process.
In a statement provided to CNBC, an Apple representative said, “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.”
OpenAI responded to the allegations with its own statement, saying, “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.
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