Apple Sues OpenAI, Claims Executors Stole Trade Secrets

Apple has sued OpenAI and two former employees, accusing the developer of ChatGPT of using stolen data for its computing services.

The complaintfiled Friday in the US District Court for the Northern District of California, names former Apple electrical engineer Chang Liu and former head of iPhone and Apple Watch design Tang Yew Tan, along with the OpenAI Foundation, OpenAI Group PBC, and io Products.

Apple says Liu, who left the company in January after eight years, failed to return a company laptop and later accessed Apple’s internal systems through an authentication bug.

“Despite the use of OpenAI, Mr. Liu also used a rare, previously unknown bug to access Apple’s shared folders on the Internet,” Apple’s lawyers complained. “After realizing that he had unauthorized access to Apple’s computer, Mr. Liu did not report, return his stolen laptop to Apple, or delete the software that allowed the access.”

Apple says Liu downloaded confidential confidential files, including unreleased product information, technical specifications, technical specifications, and project information.

The company also claims that Tan, who spent 24 years at Apple before becoming head of OpenAI tools, used secrets from his time at Apple to benefit OpenAI.

The complaint alleges that Tan used internal Apple software names during interviews with OpenAI and asked about unreleased features. Apple also says that candidates were told to bring “real parts,” of “show and tell.”

Apple also says the OpenAI recruitment process requested “CAD/design artifacts,” prototypes, vendor information, and details of employee work on Apple devices.

Apple and OpenAI did not immediately respond to a request for comment Decrypt.

This case follows OpenAI $6.4 billion Acquisition of io Products, a hardware startup founded by former Apple developer Jony Ive. Ive not been named in the complaint.

According to the filing, OpenAI’s hardware division has hired more than 400 former Apple employees. Apple says it contacted OpenAI in February with concerns about the company’s privacy practices but has yet to respond.

The news comes after a trade secret dispute between OpenAI and Elon Musk’s xAI. In September, xAI the defendant OpenAI, stating that the creator of ChatGPT has recruited former employees to find the secret code, training methods, and data center methods.

OpenAI denied the allegations, as did a federal judge removed lawsuit in June, finding xAI failed to show OpenAI encouraged a former employee to reveal secrets.

The lawsuit is rooted in Apple’s longstanding relationship with OpenAI.

In 2024, Apple thrown OpenAI to bring ChatGPT to Secret as part of its Apple Intelligence program. However, earlier this year, Apple turned to Google Gemini powering its next generation of AI models later delay it stopped the output.