Apple Sues OpenAI, Alleges Theft Of Trade Secrets For AI Hardware Development

Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of using stolen trade secrets to develop its AI hardware, escalating tensions between the two companies despite their existing partnership.

The lawsuit, filed in a federal court in California, alleges that OpenAI engaged in a “coordinated pattern of misconduct at an institutional level” by using confidential Apple information to advance its hardware programme.

According to the filing, Apple claims the case involves former employees who allegedly took the company’s proprietary information to benefit OpenAI.

“This case is about Apple’s former employees stealing Apple’s trade secrets for the benefit of OpenAI,” the lawsuit states. “Apple brings this suit to put a stop to it.”

Apple named OpenAI and two former employees as defendants. They are Tang Tan, a former senior Apple executive who helped design the iPhone, Apple Watch and iPod and now serves as OpenAI’s Chief Hardware Officer, and Chang Liu, a former Apple electrical engineer.

The company alleged that both men had access to highly confidential product development projects before leaving Apple and joining OpenAI. It claims they misappropriated proprietary information that was later used to support OpenAI’s effort to develop a new generation of AI-powered hardware.

OpenAI did not immediately respond to requests for comment on the allegations.

Although OpenAI has not disclosed details of the hardware it is developing, the company has said it aims to create a new way for people to interact with artificial intelligence beyond traditional smartphones and computers.

Apple argued that OpenAI’s hardware initiative was built, in part, on confidential information allegedly taken from the company, an accusation that could further strain relations between the two firms as competition in the AI industry intensifies.