Apple has taken a significant legal step against OpenAI and its hardware leadership, filing a lawsuit on Friday that alleges a systematic scheme to steal valuable trade secrets. This legal action targets OpenAI’s chief hardware officer, Tang Tan, a former Apple veteran of 24 years, along with his colleagues and the company itself. The lawsuit claims that OpenAI has actively encouraged departing Apple employees to bring proprietary information, unreleased designs, and confidential project details to their new roles.
The core of Apple’s complaint centers on accusations that Tan coached recruits on how to circumvent Apple’s robust data security protocols. He allegedly directed job candidates to bring confidential Apple parts, including unreleased components and prototypes, to interviews at OpenAI for “show and tell” sessions. Apple contends that OpenAI’s fledgling hardware business is built on a foundation of illegally obtained intellectual property, describing the conduct as “unlawful shortcuts” driven by pressure to deliver a commercial hardware product.
Allegations of Extensive IP Theft
The lawsuit, filed in US district court in San Jose, details a pattern of illicit behavior. Apple claims that Tan emailed himself sensitive information about the company’s suppliers before his departure. Other employees allegedly followed suit, taking confidential files as they transitioned to OpenAI. In one striking instance, an Apple employee was reportedly seen screenshotting and downloading files related to a “highly confidential Apple project” just hours before an interview with Tan.
Further accusations suggest that Tan utilized an internal Apple document outlining security procedures for departing managers to advise recruits on how to evade detection. This included counseling them to delay disclosing their new employer, prolong access to Apple’s systems, and avoid signing exit documents. Apple’s investigation, which relied on data and messages from employee devices, revealed a “concerning recent pattern” among employees moving to OpenAI, characterized by actions to circumvent security measures.
The legal document also names io Products, a startup acquired by OpenAI for $6.5 billion last year, as a defendant. This startup was co-founded by several long-time Apple executives, including Tan, Scott Cannon, Evans Hankey, and renowned designer Jony Ive. Additionally, Chang Liu, an electrical engineer at OpenAI who left Apple in January, is also named, with allegations that he downloaded “dozens of Apple’s confidential hardware-related files” and coached a recruit on how to “avoid trouble with the security team” while copying sensitive information.
A Deepening Rift Between Tech Giants
This lawsuit marks a significant escalation in the relationship between Apple and OpenAI, which, until recently, were partners. The companies announced a landmark deal in 2024 to integrate ChatGPT into iPhones, Macbooks, and iPads. However, their alliance has reportedly soured, leading Apple to increasingly rely on Google’s Gemini AI technology for its in-house AI models.
The burgeoning market for AI-powered consumer devices is a new battleground where Apple and OpenAI are poised to become fierce competitors. Apple’s lawsuit highlights OpenAI’s aggressive recruitment strategy, noting that the AI company has hired more than 400 former Apple employees, including several veterans now leading its AI-powered device development. OpenAI’s hardware ambitions include developing a “family” of AI-powered devices, with reports suggesting a voice-controlled tabletop puck.
Implications and Precedents
This legal battle could become one of Silicon Valley’s most high-profile intellectual property theft cases since Waymo’s 2017 lawsuit against Uber. In that case, Uber settled for $245 million after being accused of stealing hardware designs. Apple is seeking an injunction to prevent OpenAI from continuing the alleged theft, along with monetary damages and the return of any pilfered property and data.
While OpenAI has remained largely quiet about its hardware plans, filings indicate they will adopt a new brand name and won’t release devices before April 2027. Apple spokesperson Hannah Smith affirmed the company’s commitment, stating, “We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so.” Neither OpenAI nor Tan have issued immediate responses to the lawsuit’s claims.
Source: Wired – AI
