Apple sues OpenAI, its employees claiming theft of trade secrets

Image source, Reuters Image caption, Apple CEO Tim cook is leaving the role later this year.

Apple has accused OpenAI of gaining access to valuable inside information through the hiring of its former employees.

In a federal lawsuit filed on Friday, Apple sued the artificial intelligence (AI) company, two of its employees, as well as io Products, claiming it has engaged in "a pattern of theft" of Apple's confidential product development and related work.

At least two long-time Apple workers who left the company to join OpenAI allegedly took part in this pattern by, in part, emailing themselves internal Apple information.

Drew Pusateri, a spokesman for OpenAI, told the BBC: "We have no interest in other companies' trade secrets."

Pusateri added that the company, which is currently reviewing Apple's complaint, is "focused on building innovative technology that empowers people everywhere."

An Apple spokesman told the BBC the lawsuit is the result of "significant evidence."

It represents a major shift in relations between Apple and OpenAI, creator of the popular AI chatbot ChatGPT.

Tim Cook, Apple's outgoing CEO, had added ChatGPT into Apple devices as the company was looking to offer more AI features.

This year, Apple shifted more of its AI features to run on Google's Gemini model and tools.

Yet, when Cook revealed in April that he was stepping down, Sam Altman, co-founder and CEO of OpenAI, publicly praised him as "a legend", adding he was "very thankful for everything he has done".

Now, Apple is accusing OpenAI of undertaking a "strategy to extract Apple's confidential information".

Along with OpenAI, Apple is suing io Products, the design startup founded by Jony Ive, a long-time Apple executive. OpenAI acquired the company last year.

It is also suing Chang Liu, a senior electrical engineer who worked at Apple for eight years, and Tang Yew Tan, a vice president of design for iPhone and Apple Watch who spent 24 years with the company. Tan is now OpenAI's chief hardware officer.

Through these former employees and their access to "sensitive projects, trusted partner relationships, proprietary manufacturing techniques, and unreleased products," Apple claims OpenAI has been able to glean details of its product plans and operations.

Apple added that when OpenAI interviews current Apple employees for potential jobs the company allegedly tries to extract further information from them.

OpenAI interviewers allegedly have told the prospective hires to "bring 'actual parts' as 'props' from Apple for 'show and tell'" during their interview.

Apple accused all of the parties it was suing of "acting in concert and as an enterprise, exploiting Apple's confidential information to advance OpenAI's efforts to enter the consumer hardware market".

OpenAI is expected to release its first hardware product, a type of keyboard to be used with its AI tools, this month.

It is also planning to become a publicly traded company.

Apple said in its lawsuit that, because OpenAI's "misconduct is normalized and exemplified by leadership" its "nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets".

The company also said that it had attempted to discuss it's concerns with OpenAI in February, but was ultimately ignored.

Apple has asked the court to immediately prohibit OpenAI from obtaining or using any alleged confidential information and it is seeking unspecified monetary damages.