Apple has filed a lawsuit against OpenAI, accusing them of acquiring confidential company information connected to future products and secret research projects. The legal complaint claims that former Apple employees who later joined OpenAI carried sensitive material with them, including unreleased product details, internal documents, prototype information and confidential designs.
One of the people named in the lawsuit is OpenAI’s hardware chief Tang Yew Tan, who previously worked at Apple. The Tim Cook-led company also accused another former employee, Chang Liu, of downloading confidential engineering files after joining OpenAI.
As per the complaint, Apple alleged, “After leaving Apple, Liu failed to return an Apple-issued work laptop
that he had previously authenticated to Apple’s network. In a message left on a former colleague’s Apple issued work laptop he said, ‘I still have another computer’ on which he planned to access Apple information.”
“While employed by OpenAI, Liu also exploited a rare, previously unknown authentication bug to access Apple’s shared network folders. Upon discovering that he had this unauthorised access to Apple’s systems, Liu did not report it, return his stolen Apple issued work laptop or delete the programme that allowed the access.
“While developing hardware for OpenAI, Liu surreptitiously accessed and downloaded dozens of Apple’s confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data.”
According to Apple’s lawsuit, messages found on a company issued laptop showed that Chang Liu allegedly advised another Apple employee, whom he was trying to recruit to OpenAI, on how to avoid attracting the attention of Apple’s security team while copying confidential files. The iPhone maker also claims that Liu suggested she review internal information about unreleased Apple products before her OpenAI interview because the discussions could involve Apple’s technology.
Apple ‘entrusted’ Tang Yew Tan “with its most sensitive projects, trusted partner relationships, proprietary manufacturing techniques, and unreleased products. In the months before he left Apple, Tan met with OpenAI or its collaborators and discussed meetings with a key Apple supplier. He began emailing himself information about Apple’s suppliers and internal summaries of the consumer electronics industry. And today, when interviewing Apple employees for jobs at OpenAI, Tan uses Apple’s confidential information to gain access to even more insider knowledge.”
Tan allegedly discussed unreleased Apple products using internal project names and asked questions about the company’s plans. Apple also claims that some job candidates who were still working at Apple were encouraged to bring actual Apple parts to OpenAI interviews so they can be examined and discussed.
The lawsuit says at least one candidate was surprised by the request and was unsure about taking company parts from the office. Apple further alleges that OpenAI encouraged candidates to bring design files, prototypes and other confidential materials to interviews. It also claims candidates were asked to discuss technical details about their work, including how products were designed, the software and tools they used, and how Apple selected and worked with suppliers.
“This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalised and exemplified by leadership. This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information.
“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,” it said.
Apple says it has decided to take legal action because they believe its confidential information has been misused. The company is asking the court to award financial compensation and the final amount to be decided during the trial. Apple also wants the court to stop OpenAI and the individuals named in the lawsuit from keeping, using or sharing any of Apple’s alleged trade secrets.
OpenAI’s past legal troubles
OpenAI and CEO Sam Altman have faced several controversies over the past few years. In November 2023, Altman was removed as CEO after OpenAI’s board said they believed he had not been consistently open in his communications with them.
In May 2024, actress Scarlett Johansson said she was upset after OpenAI released a voice assistant that she believed sounded very similar to her own.
Separately, Elon Musk filed a lawsuit related to OpenAI, but a court dismissed one of his claims because of a legal technical issue, without deciding if the claim was right or wrong. Musk has said he plans to appeal.
