\n An OpenAI logo appears on a smartphone beside an Apple laptop in Stafford, United Kingdom, on April 28, 2024. Apple has accused OpenAI and two former employees of misappropriating trade secrets tied to consumer hardware development. | Ascannio\/Shutterstock <\/p>\n
Apple accused OpenAI of using stolen trade secrets to accelerate its push into consumer hardware, alleging former Apple employees downloaded confidential files, coached recruits on avoiding security reviews, and were told to bring proprietary Apple parts and prototypes to OpenAI job interviews.<\/p>\n
Apple filed the 41-page complaint<\/a> on July 10 in the U.S. District Court for the Northern District of California. The lawsuit names former Apple employees Chang Liu and Tang Yew Tan, along with OpenAI Foundation, OpenAI Group PBC, and io Products LLC.<\/p>\n OpenAI acquired io Products, co-founded by former Apple designer Jony Ive, Tan and two others, in a deal valued at nearly $6.5 billion as part of its push into consumer hardware.<\/p>\n Apple alleges trade secret misappropriation against all defendants and breach of contract against Liu and Tan. The company wants the court to block the defendants from using its confidential information, order the return of Apple property, preserve evidence, and award damages.<\/p>\n What it could mean for consumers<\/p>\n The lawsuit does not allege that customer data was exposed or that Apple\u2019s ChatGPT integration will end. Apple\u2019s complaint specifically states that the agreement governing ChatGPT\u2019s integration into Apple Intelligence is not part of the case.<\/p>\n OpenAI CFO Sarah Friar told<\/a> The Associated Press in April that the company expected consumer hardware toward the end of 2026. It remains unclear whether Apple\u2019s lawsuit will affect that schedule.<\/p>\n The dispute instead centers on OpenAI\u2019s consumer hardware plans. Apple wants the court to stop the defendants from using the disputed information and require them to return Apple materials.<\/p>\n It remains unclear whether the lawsuit will delay or change any OpenAI device. The court has not ruled on Apple\u2019s requests, and OpenAI has not publicly detailed the consumer product it plans to release.<\/p>\n Apple details alleged file access<\/p>\n Liu spent more than eight years at Apple as a senior system electrical engineer for the iPhone before joining OpenAI in January, according to the complaint.<\/p>\n Apple alleges Liu failed to return an Apple-issued laptop and later used a former colleague\u2019s authenticated Apple computer. The company also claims he exploited a previously unknown authentication flaw to access Apple\u2019s network storage after leaving.<\/p>\n The complaint says Liu reacted to the access by writing \u201cLOL\u201d and calling it \u201cso funny.\u201d<\/p>\n Apple alleges he then downloaded dozens of confidential hardware files while working on OpenAI products. The materials allegedly included more than 1,000 pages of technical information involving unreleased products, engineering work, manufacturing processes, and testing.<\/p>\n Apple also claims Liu coached a colleague preparing to join OpenAI on how to copy files and \u201cavoid trouble with the security team.\u201d<\/p>\n Apple says recruits were told to bring parts<\/p>\n Tan worked at Apple for 24 years and most recently served as vice president of product design for the iPhone and Apple Watch. He later co-founded io Products and now serves as OpenAI\u2019s chief hardware officer.<\/p>\n Apple alleges Tan used internal Apple project names during OpenAI interviews to ask candidates about unreleased products.<\/p>\n The complaint also claims he directed Apple employees to bring \u201cActual parts\u201d to interviews for \u201cshow and tell,\u201d including batteries, logic boards, shields, housings, and other components.<\/p>\n Apple further alleges OpenAI asked candidates to provide prototypes, \u201cCAD\/design artifacts,\u201d supplier information, and details about Apple\u2019s engineering and manufacturing methods.<\/p>\n More than 400 former Apple employees now work for OpenAI, according to the complaint. Apple does not claim that hiring them was unlawful. Instead, it alleges OpenAI used their confidential knowledge to obtain more information from current employees and suppliers.<\/p>\n OpenAI denies interest in Apple\u2019s secrets<\/p>\n Apple alleges it contacted OpenAI in February to raise concerns and ask what safeguards the company had put in place. Apple claims OpenAI did not respond.<\/p>\n OpenAI said it was reviewing the lawsuit. Spokesperson Drew Pusateri said<\/a> in a statement reported by The Associated Press that the company has \u201cno interest in other companies\u2019 trade secrets.\u201d<\/p>\n