On Friday (July 9), in a lawsuit filed in the U.S. District Court for the Northern District of California, Apple claimed that OpenAI systematically collected its confidential technical information. The company allegedly used former Apple employees, special recruitment processes, and existing relationships with supplier companies for this purpose.
Apple sues OpenAI over trade secret theft allegations
The two former executives accused in the lawsuit are Chang Liu, a former senior systems electrical engineer at Apple, and Tang Yu Tan, a former vice president of iPhone and Apple Watch design. They are accused of using Apple's proprietary sensitive technical information for the benefit of OpenAI.
According to Apple's complaint, Chang Liu did not return the company's official laptop upon leaving his job. Later, exploiting an authentication error, he accessed Apple's internal network and downloaded dozens of confidential documents related to hardware development.
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Additionally, Tang Yu Tan is accused of regularly using Apple's confidential information for OpenAI's benefit even before leaving his job. Apple claims he sent information about supplier companies, internal industry analyses, and other sensitive documents to his personal email. According to LinkedIn information, Tang Yu Tan worked at Apple for about 24 years and was involved in iPhone development for a long time.
The lawsuit further alleges that Tang Yu Tan encouraged Apple employees to bring various hardware components from the company to job interviews at OpenAI. Apple also mentioned an incident where a job candidate reportedly expressed surprise, saying he did not know it was possible to take such components out of the office.
However, OpenAI has denied the allegations. In a statement, the organization said it has no interest in the trade secrets or confidential information of any other entity. Their goal is to create innovative technology that will be beneficial for people around the world.
The lawsuit also names the OpenAI Foundation, the company's commercial arm OpenAI Group PBC, and the recently acquired hardware company 'IO Products' as defendants.
According to analysts, this lawsuit is not just a trade secret dispute; rather, it signals a major competition between the two tech companies for control of the future AI-dependent device market. It is believed that OpenAI is moving forward with plans to create its own smartphone or new types of AI devices, which could impact future iPhone sales.
According to Paolo Pescatore, an analyst at market research firm PP Foresight, Apple now sees OpenAI not just as a technology partner but also as a potential rival. In his words, whether or not the allegations are proven in court, this lawsuit could delay OpenAI's hardware development plans and further complicate the relationship between the two companies.