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Apple on July 10 sued OpenAI<\/a> and two former employees, alleging misappropriation of its trade secrets to benefit the ChatGPT<\/a>-owner\u2019s foray into consumer hardware, a dramatic escalation of already simmering tension between the two companies.\n<\/p>\n The complaint accuses OpenAI of orchestrating a broad effort to systematically acquire and exploit Apple<\/a>\u2018s confidential information through former employees, recruiting practices and supplier relationships to accelerate its push into the consumer hardware business.\n<\/p>\n The lawsuit sets up a battle over who will control future AI devices that may not use traditional apps or operating systems \u2014 devices which, if successful, would direct consumer attention away from Apple\u2019s best-selling iPhone. Analysts believe OpenAI is working on a phone or other device of its own.<\/p>\n 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.\n<\/p>\n Apple\u2019s lawsuit, which was filed in the U.S. District Court for the Northern District of California, comes just after OpenAI successfully fended off a legal challenge from Elon Musk\u2019s xAI.\n<\/p>\n 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.<\/p>\n Apple alleged that Liu failed to return a company-issued work laptop and later used an authentication bug to access Apple\u2019s internal network, downloading \u201cdozens of Apple\u2019s confidential hardware-related files.\u201d\n<\/p>\n The iPhone maker also claimed that OpenAI\u2019s hardware chief Tan had been \u201cmethodically using Apple\u2019s confidential information to benefit OpenAI\u201d before his departure by emailing himself information about Apple suppliers and internal industry summaries. Tan worked on the iPhone for most of his 24-year tenure at Apple, according to his LinkedIn page.\n<\/p>\n Apple alleged that Tan encouraged Apple employees to bring parts from Apple to job interviews at OpenAI for \u201cshow and tell\u201d sessions, citing an incident in its filing where one OpenAI job candidate allegedly said that he \u201cdidn\u2019t even know we could take those from the office.\u201d\n<\/p>\n OpenAI Foundation<\/a>, OpenAI Group PBC<\/a>, the company\u2019s commercial arm, and io Products, which OpenAI acquired, were also named as defendants.<\/p>\n","protected":false},"excerpt":{"rendered":"
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