Apple sues OpenAI over alleged theft of hardware trade secrets

← Back to the feed

Apple sues OpenAI over alleged theft of hardware trade secrets

Developed over time first seen 1 month ago

The Guardian · 1 month ago

Apple has sued OpenAI, accusing the artificial intelligence company of stealing trade secrets in a push to build its own hardware device. The complaint alleges that OpenAI poached Apple employees and coaxed them into handing over confidential product designs, supplier details and other closely guarded information about unreleased technologies. The suit marks a sharp reversal for the two firms, which struck a major partnership in 2024 to integrate OpenAI's ChatGPT into iPhones, iPads and Macs. OpenAI spokesperson Drew Pusateri said the company was reviewing the filing, insisting it had "no interest in other companies' trade secrets" and remained focused on building innovative technology.

Filed on Friday, the complaint names OpenAI's chief hardware officer Tang Yew Tan, a former Apple vice-president, who Apple claims took supplier information and directed job candidates still working at Apple to bring "actual parts" to interviews for "show and tell" sessions. Another former employee, Chang Liu, is accused of leaving with an Apple laptop and using an authentication bug to breach the company's internal network and download dozens of confidential hardware files. Also named is io Products, the hardware startup founded by former Apple design chief Jony Ive that OpenAI acquired for $6.4bn last year. Apple, whose relationship with OpenAI had cooled after it chose Google's Gemini model for its revamped Siri, is seeking damages and a court order barring OpenAI from possessing or using its trade secrets.

  • Apple sues OpenAI, alleging trade secret theft for a hardware device.
  • OpenAI denies interest in rivals' secrets; reviewing the filing.
  • Named ex-Apple staff accused of taking parts, files and a laptop.

New here? Start with this

Apple and OpenAI are two of the biggest names in technology, and until recently they were close partners. In 2024 the pair agreed a deal to build OpenAI's ChatGPT assistant into Apple's iPhones, iPads and Macs, pairing Apple's hardware reach with OpenAI's artificial intelligence software.

That relationship has since cooled, partly because Apple opted to use rival Google's technology for its updated Siri assistant rather than leaning further on OpenAI. OpenAI, meanwhile, has been expanding beyond software into its own physical devices, including through io Products, a hardware startup it bought for billions of dollars, which was founded by Jony Ive, Apple's former chief designer.

Trade secrets are confidential business information, such as product designs or supplier details, that a company works to keep hidden from competitors because they give it a commercial edge. Legal disputes over trade secrets often centre on former employees who move to a rival firm and are accused of taking sensitive material with them, which is the type of allegation now at the heart of the disagreement between Apple and OpenAI.

More coverage

AI Art Business Companies Culture Technology

Read the full article at the source →

Originally published by The Guardian as “Apple sues OpenAI, alleging artificial intelligence company stole trade secrets”.