Apple has filed a lawsuit against OpenAI, accusing the ChatGPT maker of stealing trade secrets to support its nascent hardware business. The lawsuit, filed in a California federal court, alleges that OpenAI encouraged Apple employees it was recruiting to share confidential information and even guided them on how to avoid scrutiny when taking jobs at OpenAI. Specifically, Apple claims that two former employees, Tang Tan (now OpenAI's chief hardware officer) and Chang Liu (a former electrical engineer), illegally accessed and shared Apple's sensitive product development details and confidential hardware-related files while working at OpenAI.
The lawsuit asserts that OpenAI's efforts to build hardware, which analysts believe could include AI-powered devices or even a smartphone, are based on knowledge stolen from Apple. Apple alleges that Tan directed job candidates still working for Apple to bring "actual parts" from Apple to their interviews at OpenAI and that Liu downloaded dozens of confidential hardware files on an Apple-issued device after his departure. This legal action comes after OpenAI acquired io Products, a company co-founded by former Apple designer Jony Ive, Tan, and others, in a deal valued at nearly $6.5 billion, to further its hardware ambitions. OpenAI's CFO, Sarah Friar, indicated in April that consumer hardware would be released toward the end of this year.
Apple’s recent partnership with OpenAI to integrate ChatGPT into the iPhone, meant to compensate for Apple's lag in the AI race, has now veered into a fierce rivalry. The lawsuit could significantly impact OpenAI's hardware plans and its potential IPO. Apple stated it began investigating trade secret compromise after former employees moved to OpenAI and contacted OpenAI in February with its concerns, but received no response. OpenAI, while reviewing the filing, stated it has "no interest in other companies’ trade secrets" and remains focused on innovation. This legal battle highlights the escalating competition for control over future AI devices, which may bypass traditional apps and operating systems, potentially drawing consumer attention away from Apple's core products like the iPhone.
