“He has directed job candidates still working for Apple to bring ‘actual parts’ from Apple to their interviews for ‘show and tell’ sessions in which he and his team at OpenAI can elicit still more Apple confidential information,” Apple said in the filing.
The lawsuit also names OpenAI hardware startup IO Products, which OpenAI acquired last year, as well as former Apple engineer Chang Liu. Apple alleges Liu failed to return a company-issued laptop after leaving for OpenAI and used it to download confidential technical documents covering unreleased products, engineering presentations, technical specifications, and proprietary project information. According to the complaint, Liu also shared confidential knowledge with Apple employees applying for jobs at OpenAI and advised at least one candidate on how to prepare for interviews.
Apple argues that the alleged conduct extends beyond individual employees. The company claims OpenAI leadership coached departing Apple staff on how to avoid Apple’s security procedures and sought information about confidential engineering decisions, vendor selection processes, and unannounced hardware projects.
The filing further alleges that OpenAI and its partners used Apple’s confidential information while developing hardware products. Apple specifically points to a proprietary metal finishing technique, claiming OpenAI asked manufacturing partners to use the process while misleading them into believing Apple had authorized the work.
Apple said it raised its concerns directly with OpenAI earlier this year by sending a letter outlining the alleged misconduct but received no response, according to the complaint.
The dispute marks a dramatic shift in the relationship between the two companies. Apple and OpenAI previously partnered to integrate ChatGPT into Apple’s software, but their relationship has become more complicated as OpenAI pursues its own hardware ambitions following its acquisition of IO Products. Although IO Products is named as a defendant, former Apple design chief Jony Ive, whose startup was acquired by OpenAI, is not named in the lawsuit.
OpenAI has not publicly announced its first hardware product, though CEO Sam Altman has previously said the company completed its first prototypes.
Apple is seeking damages, court orders preventing OpenAI from using or disclosing its trade secrets, the return of confidential Apple materials, preservation of evidence related to the case, and injunctive relief aimed at protecting its intellectual property.
In a statement, Apple said, “At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products. We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so.”
The complaint also characterizes the alleged misconduct as part of a broader pattern inside OpenAI, stating: “This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership. As a natural result, OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”
This analysis is based on reporting from CNBC.
Image courtesy of MacRumors.
This article was generated with AI assistance and reviewed for accuracy and quality.
