Among those named in the lawsuit is OpenAI’s hardware chief, Tang Yew Tan, who has a prior affiliation with Apple. The company, led by Tim Cook, also accused another ex-employee, Chang Liu, of downloading proprietary engineering files post his transition to OpenAI.
According to the legal complaint, Apple claimed, “After departing from Apple, Liu did not return a company-issued laptop that he had previously authenticated to Apple’s network. In a message found on a colleague’s Apple issued work laptop, he stated, ‘I still have another computer’ from which he intended to access Apple’s data.”
“During his tenure at OpenAI, Liu exploited a rare, previously unknown authentication vulnerability to gain access to Apple’s shared network folders. Upon identifying his unauthorized access to Apple’s systems, Liu neither reported the incident nor returned his unlawfully retained Apple-issued laptop, nor did he eliminate the program that facilitated his entry.
“While working on hardware for OpenAI, Liu clandestinely accessed and downloaded numerous confidential hardware-related files from Apple, encompassing extensive information about unreleased products, engineering presentations, technical specifications, and proprietary project data.”
As per Apple’s lawsuit, messages retrieved from a company-issued laptop indicated that Chang Liu allegedly guided another Apple employee, whom he sought to recruit to OpenAI, on avoiding detection by Apple’s security team while copying sensitive files. Apple further claims that Liu advised her to review internal information regarding unreleased products before her OpenAI interview to discuss potential overlaps with Apple’s technology.
Apple ‘entrusted’ Tang Yew Tan “with its most sensitive projects, trusted partnerships, proprietary manufacturing methods, and unreleased products. In the period leading up to his departure from Apple, Tan held discussions with OpenAI or its partners regarding key Apple suppliers. He began emailing himself details about Apple’s suppliers and summaries related to the consumer electronics sector. While interviewing Apple staff for positions at OpenAI, Tan utilized Apple’s confidential information to gain further insider insight.”
Tan allegedly spoke about unreleased Apple products using their internal project titles and inquired about the company’s strategic plans. Apple also claims that some job seekers, still employed by Apple, were urged to bring actual Apple components to OpenAI interviews for examination and discussion.
The lawsuit outlines that at least one candidate was taken aback by this request and was uncertain about removing company property from the office. Apple goes on to assert that OpenAI encouraged candidates to present design files, prototypes, and other confidential materials during interviews, along with requests for them to discuss intricate technical details regarding their work, including product design, software and tools utilized, and Apple’s supplier engagement methods.
“This is just the beginning. Apple is blind to what has transpired behind the scenes at OpenAI, where such infractions are normalised and exemplified by the leadership. One thing is evident: at every tier, from members of its Technical Staff to its Chief Hardware Officer, and in collaboration with business associates, OpenAI has been misappropriating Apple’s trade secrets and confidential information.
“Consequently, OpenAI’s burgeoning hardware business is built on a precarious foundation, corrupt to its core owing to its illegal dependence on misappropriated trade secrets,” it asserted.
Apple stated that its decision to pursue legal action stems from its belief that its confidential data has been misused. The company is seeking financial compensation, with the total to be determined during the trial. Apple additionally requests the court to prevent OpenAI and the individuals named in the lawsuit from retaining, using, or distributing any of Apple’s purported trade secrets.
OpenAI’s previous legal challenges
OpenAI and its CEO Sam Altman have encountered multiple controversies in recent years. In November 2023, Altman was ousted as CEO after OpenAI’s board expressed concerns over his transparency in communications with them.
In May 2024, actress Scarlett Johansson voiced her dissatisfaction after OpenAI launched a voice assistant she felt bore a striking resemblance to her own.
Separately, Elon Musk filed a lawsuit against OpenAI, but a court dismissed one of his claims based on a legal procedural issue, without addressing the validity of the claim. Musk has indicated intentions to appeal.
