Apple is suing OpenAI, alleging that the theft of secrets occurs at every level.

Apple has sued OpenAI for allegedly stealing trade secrets and intellectual property to develop hardware. The lawsuit reveals a data breach carried out at every level, impacting IT partnerships.

July 11, 2569 (CNBC) – Apple filed a lawsuit against OpenAI in the federal court for the northern district of California on Friday. The AI ​​lab is accused of stealing intellectual property from the iPhone giant to use in developing its own consumer hardware devices.

“However, what is clear is that at every level, from members of the technical team to the Chief Hardware Officer, and in collaboration with business partners, OpenAI has been consistently stealing Apple’s trade secrets and confidential data.” Apple stated in documents filed with the court.

This lawsuit represents a shocking turning point for both companies. This partnership, which garnered significant attention in 2024 for integrating ChatGPT into the iPhone's operating system, was announced with OpenAI CEO Sam Altman personally visiting Apple's headquarters.

However, the relationship between the two companies has been strained since last year, after OpenAI announced its plans to enter the hardware industry by investing over $6.4 billion to acquire IO Products, a startup founded by Jony Ive, a former renowned Apple designer.

And most recently, this coming fall, Apple's updated version of Siri will switch from OpenAI technology to Google's "Gemini" AI model.

Exposing the practice of poaching employees.
They ordered 'actual body parts' to be brought in for display during the interview.

Most of Apple's allegations are aimed at a group of former Apple employees who either went through job interviews or later joined OpenAI. Apple alleges that Tang Tan, OpenAI's Chief Hardware Officer and former Apple Vice President, instructed Apple employees interviewing for OpenAI positions to share Apple's confidential information during the interview process. Tang Tan has been named as a defendant in this case.

“He instructed job applicants who are still working at Apple to bring ‘actual parts’ from Apple to their job interviews for use in the ‘Show and Tell’ session, which gave him and his OpenAI team even more opportunities to extract confidential Apple information.” Apple stated in the lawsuit.

Furthermore, Apple claims that OpenAI advised employees who were about to leave Apple on how to bypass security processes when leaving the company, and alleges that Chang Liu, another former employee who moved to OpenAI, stole an Apple laptop. Chang Liu is also named as a defendant in this case.

Violation of advanced technology and retaliation from both sides.

The lawsuit also states that Apple believes OpenAI is asking various hardware manufacturers to adopt its proprietary metal finishing technique. "Luring that partner into believing they have permission from Apple."

• • An Apple representative told CNBC: “Recently, significant evidence has emerged indicating that individuals employed by OpenAI have misappropriated confidential and trade secret information regarding our unreleased technologies, processes, and products.”
  • A representative from OpenAI responded with a statement saying: “We have no interest in other companies’ trade secrets. We remain committed to creating innovation-driven technology to empower people around the world.”

IO Products has also been named as a defendant in this case. OpenAI has not yet announced when or what type of hardware product it will launch, but Altman revealed last November that the company had completed its first prototype.
Meanwhile, Apple has not yet commented on whether this lawsuit will affect its cooperation with OpenAI in integrating ChatGPT into Apple Intelligence.

OpenAI's legal storm
Amid preparations for an IPO.

The escalating legal challenges are becoming another risk for OpenAI as the company prepares for its historic initial public offering (IPO).

Apple's lawsuit comes just two months after OpenAI won a high-profile lawsuit against Elon Musk, CEO of Tesla and SpaceX. A federal jury ruled that Musk (one of OpenAI's co-founders) waited too long before filing the lawsuit, alleging that co-founders Sam Altman and Greg Brockman, and the company, breached its agreement to operate as a nonprofit. Musk stated he will appeal the ruling.

In this lawsuit, Apple is seeking damages, injunctions, and an order to compel OpenAI to cease all use of Apple's trade secrets.

refer : www.cnbc.com

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