Technology giant Apple has launched a trade secret theft lawsuit in California federal court against its AI rival OpenAI. The suit names former senior system electrical engineer Chang Liu and former vice president Tang Yew Tan as defendants.
In its court filing, Apple alleges that the company's confidential information, including product designs, manufacturing processes, and supply chain strategies, was systematically taken. It is alleged that Chang Liu did not return his company-issued work computer and later accessed Apple's internal network to download 'dozens of confidential hardware files'.
Before his departure, Tang Yew Tan, OpenAI's hardware chief, sent information about Apple suppliers and internal industry summaries to his own email address. Apple stated that Tan 'methodically used Apple's confidential information for the benefit of OpenAI'.
The filing also details an incident where Tan, during job interviews, asked Apple employees to bring parts from the office, and a job candidate said, 'I didn't know we could get these from the office.'
More than 400 former Apple employees
In its filing, Apple noted that more than 400 former Apple employees currently work at OpenAI, stating, 'OpenAI's employment of individuals once entrusted with Apple's trade secrets does not give it the right to use that information to accelerate its hardware efforts.'
Supplier secrets also used
Apple also alleged that OpenAI employees requested confidential information from its suppliers. At one point, a supplier used a proprietary metal finishing technique for OpenAI, believing they had Apple's permission.
OpenAI's hardware ambitions and tension
OpenAI acquired io Products, a hardware startup founded by former Apple designer Jony Ive, for $6.5 billion last year. The AI company plans to develop a new physical device for ChatGPT that goes beyond traditional products. Ive is not named in the lawsuit.
Tension between the two tech giants has mounted as the race for AI products intensifies competition for talent and proprietary technology. Apple stated that in February it sent a letter to OpenAI expressing concern about the leak of its confidential information but received no response.
A source close to the matter told Reuters in May that OpenAI was evaluating legal options against Apple, including a breach of contract notice, but might not pursue a full-scale lawsuit.
In 2024, Apple announced the integration of Apple Intelligence technology into its apps, including Siri, and brought OpenAI's chatbot ChatGPT to its devices. Through the partnership, users can access ChatGPT responses via Siri; iPhone users can also initiate a ChatGPT subscription directly from iOS settings. Apple last month rolled out a delayed Siri update.
