Apple sues OpenAI over alleged trade secret theft
Apple has filed a lawsuit against OpenAI alleging trade secret theft and breach of contract. The suit centers on a former Apple employee who allegedly misused confidential information after joining OpenAI.
San Francisco – Apple filed a lawsuit Friday against OpenAI, accusing the artificial intelligence company of trade secret theft and breach of contract. The iPhone maker alleges that OpenAI executives directed a former Apple employee to misuse confidential company information.
The lawsuit, filed in the U.S. District Court for the Northern District of California, claims that OpenAI's Chief Hardware Officer, Tang Tan, used Apple's project codenames during recruiting processes. Tan is also accused of asking job candidates to bring Apple hardware components to interviews and instructing departing Apple employees on how to bypass the company's security procedures.
Tan spent 24 years at Apple before joining OpenAI, most recently as VP of product design for the iPhone and Apple Watch. The accusations emerge as OpenAI is rumored to be developing its own hardware product, which could potentially compete with Apple's core business, the iPhone.
OpenAI acquired Jony Ive's (former Apple design chief) startup io last year for $6.5 billion to bolster its hardware development. Apple's legal action signals concerns that its development work and intellectual property are at risk from competitors' actions.