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Apple sues OpenAI over alleged theft of trade secrets by departing engineers

Fortune AI3h ago
Apple sues OpenAI over alleged theft of trade secrets by departing engineers

Key takeaway

Apple has filed a lawsuit accusing OpenAI of systematically recruiting its hardware engineers and executives while encouraging them to steal confidential product designs, manufacturing details, and internal information. The case centers on Tang Tan, a former Apple design executive now at OpenAI, and reflects escalating tension as both companies compete in the emerging AI device market; OpenAI has invested billions in hardware and acquired io Products for $6.5 billion(約1兆円), though it is still developing product strategy.

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3 Key Points

  • What happened

    Apple filed a 40-page lawsuit Friday alleging that OpenAI systematically recruited its hardware engineers and executives—including former design chief Tang Tan—and encouraged them to download confidential internal information, hardware designs, and manufacturing details before and after joining OpenAI. One engineer, Chang Liu, discovered a software bug that gave him access to Apple's internal file servers and used it to obtain presentations and testing procedures while already working at OpenAI.

  • Why it matters

    Apple and OpenAI, once partners, are now direct rivals in the nascent AI device market. OpenAI has committed billions to hardware and is racing toward an IPO, but acquired startup io Products for $6.5 billion(約1兆円) while still working on product strategy. The lawsuit highlights the tension between the two companies as they compete to define the next generation of consumer devices beyond the iPhone.

  • What to watch

    Apple says it contacted OpenAI in February with concerns about misappropriated information and asked the company to investigate and stop the practice, but alleges OpenAI never responded. OpenAI denies the allegations, stating it has 'no interest in other companies' trade secrets' and remains focused on building innovative technology.

Context & Analysis

The lawsuit emerges from a high-stakes competition between Apple and OpenAI in the emerging AI device market. Tang Tan's departure in late 2023 marked a turning point: Apple initially allowed him to stay through February 2024 to manage a hardware division transition, unaware that he was already collaborating with former Apple design head Jony Ive and OpenAI CEO Sam Altman on io Products, the startup OpenAI acquired for $6.5 billion(約1兆円). Since then, OpenAI's recruiting has drawn more than 400 former Apple employees, including senior hardware and design leaders, as well as Paul Meade, Apple's smart glasses chief, whom Apple removed in June without a transition period.

Apple portrays this recruitment pattern as orchestrated by Tan, who allegedly used interviews as information-gathering sessions about upcoming products and asked hires to bring unreleased components to job interviews. The lawsuit alleges that once employees joined OpenAI, they were encouraged to send confidential information to personal email accounts using a checklist Tan created to evade Apple's security teams. The most dramatic allegation involves Liu's discovery of a network access bug; he wrote to a colleague, "LOL, I found out I can access the [network storage], so funny," and then allegedly downloaded sensitive materials while already employed at OpenAI.

The dispute also reflects internal tension at Apple. Most of OpenAI's recruits came from the hardware engineering division led by John Ternus, who is now Apple's incoming chief executive officer. Ternus and Tan were rivals for the top hardware job in 2021, and some designers had backed Tan. Apple says it tried to resolve the matter in February by contacting OpenAI about confidential information flowing to the startup and asking for an investigation, but claims OpenAI never responded. OpenAI, meanwhile, remains focused on developing an AI-powered smartphone replacement and exploring simpler devices like earbuds and smart glasses, all while still in early prototype stages despite billions invested in the hardware effort.

FAQ

Who are the key people named in the lawsuit?
The lawsuit names Chang Liu, an iPhone engineer who quit for OpenAI's hardware division and discovered a network access bug; Alyssa Peng, an Apple employee who helped Liu obtain more information and later joined OpenAI's hardware division; and Tang Tan, a former Apple executive who oversaw iPhone, smartwatch and other product designs and is now a chief hardware officer-track executive at OpenAI.
What specific information does Apple say was stolen?
Apple alleges that Liu and other departing employees downloaded presentations, hardware designs, manufacturing details, and testing procedures. The lawsuit also says OpenAI encouraged prospective employees to bring hardware components and prototypes to job interviews at OpenAI's offices.
How did OpenAI respond to the lawsuit?
OpenAI said it has 'no interest in other companies' trade secrets' and remains focused on building innovative technology that empowers people. The company did not provide further comment; key employees named in the lawsuit, including Tan, did not respond to requests for comment.

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