Apple sues OpenAI, two former employees for trade secrets theft

Apple on Friday sued OpenAI and two former employees, alleging misappropriation of its trade secrets to ​benefit the ChatGPT-owner's foray into consumer hardware, a dramatic escalation of already simmering tension between the two companies.

The complaint accuses OpenAI of orchestrating a broad effort to systematically acquire and exploit Apple's ‌confidential information through former employees, recruiting practices and supplier relationships to accelerate its push into the consumer hardware business.

"We have no interest in other companies’ trade secrets," OpenAI said in a statement. "We remain focused on building innovative technology that empowers people everywhere.”

Tensions between the two tech companies have strained their relationship, as the race to develop AI products has intensified competition for talent and proprietary technology.

"Apple sees OpenAI moving from partner to potential rival, while OpenAI is trying to reduce its dependence on the iPhone and build a direct relationship with consumers," said PP Foresight analyst Paolo Pescatore.

Apple's lawsuit was filed in the US District Court for the Northern District of California.

The two former Apple employees named in the suit are Chang Liu, a former senior system electrical engineer, and former vice president of product design for iPhone and Apple Watch, Tang Yew Tan. Neither immediately responded to a request for comment.

Apple alleged that Liu failed to return a company-issued work laptop and later used an authentication bug to access Apple's internal network, downloading "dozens of Apple's confidential hardware-related files."

Tan worked on the iPhone for most of his 24-year tenure at Apple, according to his LinkedIn page.

OpenAI ​Foundation, OpenAI Group PBC, the company's commercial arm, and io Products, which OpenAI acquired, were also named as defendants.

-Reuters