Apple Labels OpenAI’s Hardware Ventures as ‘Fundamentally Flawed’ in Lawsuit Over Trade Secret Theft
Apple has initiated legal action against OpenAI and two of its former staff members who are now working at the AI firm, accusing them of misappropriating its trade secrets. The lawsuit, lodged in federal court on Friday, outlines significant ethical violations by a company with which Apple once had a partnership, characterizing its hardware division as “fundamentally flawed.”
The legal complaint also implicates io Products, the hardware startup recently acquired by OpenAI and led by Jony Ive, suggesting it played a role in the alleged theft of trade secrets. Although Ive is not explicitly mentioned, the document refers to the organization as being involved in “a coordinated series of violations at an institutional level” within OpenAI.
The complaint identifies Chang Liu, a former senior electrical engineer at Apple, and Tang Yew Tan, an ex-Apple VP who now serves as OpenAI’s Chief Hardware Officer. Apple contends that both Liu and Tan disclosed proprietary information to OpenAI, with Liu reportedly “covertly accessing and downloading numerous confidential hardware files, which include extensive details about unreleased products, engineering presentations, technical specifications, and proprietary project data.”
Apple further alleges that Tan has guided current Apple job candidates to bring “actual parts” to interviews for “show and tell” sessions, during which he and his team at OpenAI could extract further confidential information from Apple. In total, Apple asserts that over 400 of its former employees have transitioned to positions at OpenAI, claiming that the interviews are deliberately structured to solicit more sensitive information.
OpenAI has yet to respond to requests for comment regarding these allegations. The lawsuit indicates that the company “never replied” to Apple’s prior outreach concerning its concerns.
Apple’s filing raises the possibility that it may not even be fully aware of the extent of OpenAI’s wrongdoings. “What is evident, however, is that at every level—from technical staff to the Chief Hardware Officer, and in collaboration with business partners—OpenAI has been unlawfully acquiring Apple’s trade secrets and confidential information,” the filing states. “Consequently, OpenAI’s emerging hardware division stands on an unstable foundation, compromised by its illegal reliance on appropriated trade secrets.”
This lawsuit occurs while Apple continues its partnership with OpenAI for initiatives related to Apple Intelligence. In a footnote, Apple clarifies that their existing arrangement, which permits the integration of ChatGPT into its devices, “is not part of the issue here” and that the allegations of trade secret theft are “unrelated” to this agreement.
