Apple sues OpenAI, alleges ChatGPT maker stole trade secrets to build AI hardware

Apple has filed a lawsuit against OpenAI, accusing the ChatGPT maker of stealing trade secrets to support its efforts to develop AI hardware, marking a major escalation in tensions between the two companies.

Filed in a federal court in California, the lawsuit alleges that OpenAI and two former Apple employees engaged in a coordinated effort to misappropriate confidential information related to Apple's hardware development.

Apple alleges 'coordinated pattern of misconduct'

In the court filing, Apple accused OpenAI of benefiting from stolen proprietary information.

"This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI," the lawsuit states.

It further alleges that the theft was part of a "coordinated pattern of misconduct at an institutional level."

"Apple brings this suit to put a stop to it," the filing says.

Former Apple executives named in lawsuit

The lawsuit names two former Apple employees as defendants:

-Tang Tan, a longtime Apple executive who helped design the iPhone, Apple Watch and iPod and now serves as OpenAI's Chief Hardware Officer.

-Chang Liu, a former Apple electrical engineer who joined OpenAI earlier this year.

Apple claims both employees improperly accessed confidential company information after moving to OpenAI.

Claims of confidential file access

According to the lawsuit, Apple's internal investigation uncovered what it described as a "pattern of theft" involving confidential hardware-related information.

Apple alleges Liu downloaded sensitive hardware files using an Apple-issued device that he retained after leaving the company.

The lawsuit also claims Tan instructed job candidates who were still employed at Apple to bring "Actual parts" from Apple to interviews at OpenAI.

Apple says OpenAI ignored concerns

Apple said it contacted OpenAI in February to raise concerns uncovered during its investigation but alleged that the company did not respond.

An Apple spokesperson said the company is committed to protecting its innovations.

"We will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so."

OpenAI yet to respond

OpenAI did not immediately respond to requests for comment.

The company has not disclosed specific details about its planned AI hardware but has previously said it is developing a new way for users to interact with artificial intelligence beyond "traditional products and interfaces."

Apple argues that OpenAI's hardware ambitions are built on unlawfully obtained information.

"OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," the lawsuit states.

(With AP inputs)