Apple sues OpenAI, ex-employees over alleged trade secret theft

By Abubakar Yunusa

Apple has sued OpenAI and two former employees, alleging the artificial intelligence (AI) company misappropriated its trade secrets to accelerate its expansion into the consumer hardware market.

According to Reuters, a lawsuit filed on Friday at the United States (US) district court for the northern district of California showed Apple accused OpenAI of orchestrating a coordinated effort to obtain and exploit its confidential information through former employees, recruitment practices, and supplier relationships.

The iPhone maker alleged that the information was used to support OpenAI’s plans to develop AI-powered consumer devices that could compete with Apple’s products.

Responding to the lawsuit, OpenAI denied the allegations.

“We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere,” OpenAI said.

In the suit, Apple named Chang Liu, a former senior system electrical engineer, and Tang Yew Tan, its former vice-president of product design for the iPhone and Apple Watch, as defendants alongside OpenAI entities.

The company alleged that Liu failed to return a company-issued laptop after leaving Apple and later exploited an authentication flaw to acess its internal network, downloading confidential hardware-related files.

Apple also claimed that Tan, who now leads OpenAI’s hardware efforts, emailed himself confidential information relating to Apple suppliers and internal industry reports before departing the company.

The lawsuit further alleged that Tan encouraged Apple employees interviewing with OpenAI to bring company components to job interviews for “show and tell” sessions.

Apple said it raised concerns with OpenAI in February after discovering that its confidential information may have reached the company, but received no response.

“That OpenAI now employs people who were once entrusted with Apple’s trade secrets does not entitle OpenAI to use that information to jumpstart its hardware efforts,” the complaint said.

Apple also alleged that OpenAI employees approached some of its suppliers seeking confidential manufacturing information, including a proprietary metal-finishing technique.