Apple Files Lawsuit Against OpenAI, Alleging Trade Secret Theft via Former Employees

Apple has filed a federal lawsuit against OpenAI, two of its former employees who now work at OpenAI, and the design startup io Products, accusing them of stealing confidential information related to product development and trade secrets.

The lawsuit, submitted on Friday, alleges that OpenAI engaged in a pattern of misappropriating Apple's proprietary data through the hiring of former Apple workers. Specifically, Apple claims that at least two long-time Apple employees who left to join OpenAI emailed themselves internal documents and sensitive information before their departure.

OpenAI, the creator of the popular AI chatbot ChatGPT, denies the allegations. Drew Pusateri, an OpenAI spokesperson, told the BBC: "We have no interest in other companies' trade secrets." He added that the company is reviewing the complaint and remains focused on building innovative technology.

An Apple spokesperson stated that the lawsuit is based on "significant evidence." The case marks a notable shift in the relationship between the two tech giants. Apple's outgoing CEO Tim Cook had previously integrated ChatGPT into Apple devices as part of an effort to expand AI features. However, earlier this year, Apple shifted some AI features to Google's Gemini model.

Alongside OpenAI, Apple is suing io Products, a design startup founded by former Apple executive Jony Ive, which OpenAI acquired last year. Also named in the suit are Chang Liu, a senior electrical engineer who worked at Apple for eight years, and Tang Yew Tan, a vice president of design for iPhone and Apple Watch with 24 years at Apple. Tan now serves as OpenAI's chief hardware officer.

Apple contends that these former employees had access to sensitive projects, proprietary manufacturing techniques, and unreleased products, enabling OpenAI to obtain details of Apple's product plans and operations. The lawsuit further alleges that during job interviews, OpenAI recruiters encouraged current Apple employees to bring "actual parts" from Apple as "props" for interviews, attempting to extract additional confidential information.

Apple claims that OpenAI is "acting in concert and as an enterprise, exploiting Apple's confidential information to advance OpenAI's efforts to enter the consumer hardware market." OpenAI is expected to release its first hardware product, a keyboard designed for use with its AI tools, this month, and is also planning to become a publicly traded company.

In its complaint, Apple stated that because OpenAI's "misconduct is normalized and exemplified by leadership," its "nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets." Apple also noted that it attempted to discuss its concerns with OpenAI in February but was ignored.

Apple has requested the court to immediately prohibit OpenAI from obtaining or using any alleged confidential information and is seeking unspecified monetary damages.