Apple’s lawsuit against OpenAI alleges that the AI company obtained confidential product and manufacturing information through former Apple employees, a case that could affect OpenAI’s device development if the claims are upheld.
The 41-page complaint was filed in the US District Court for the Northern District of California on Friday.
The defendants are OpenAI Foundation, OpenAI Group PBC, hardware subsidiary io Products, and former Apple employees Chang Liu and Tang Yew Tan.
Apple brought trade-secret misappropriation claims under the federal Defend Trade Secrets Act and breach-of-contract claims against Liu and Tan.
The case remains at an early stage, and no court has ruled that OpenAI or the individual defendants stole or misused Apple’s information.
Apple says an internal investigation uncovered a coordinated effort to obtain information about unreleased products, hardware engineering, manufacturing techniques, components, suppliers and supply-chain operations.
The complaint focuses on Liu, a senior electrical engineer who worked at Apple for eight years before joining OpenAI, according to the lawsuit.
Apple alleges Liu accessed internal systems and downloaded engineering presentations, technical specifications and information concerning unreleased products.
He allegedly also advised a former colleague on how to copy confidential files without attracting Apple’s security systems and identified information the employee should study before interviewing with OpenAI.
Tan spent 24 years at Apple and served as vice president of product design for the iPhone and Apple Watch. He later co-founded io Products and is now OpenAI’s chief hardware officer.
Apple alleges Tan sent himself supplier information before leaving and later used Apple’s internal project names and technical terminology while interviewing Apple employees.
According to the lawsuit, some candidates were asked to bring physical components, design materials, prototypes or computer-aided design files to interviews and discuss Apple’s component-selection and supplier-management practices.
Apple also claims OpenAI and io Products contacted Apple suppliers using confidential knowledge obtained from former employees.
In one alleged incident, a supplier carried out an Apple-developed metal-finishing process for OpenAI after being led to believe Apple had authorized the work.
The complaint further alleges that OpenAI circulated an internal Apple document describing employee-exit security procedures and advised recruits on avoiding heightened scrutiny when leaving the company.
Apple says more than 400 former employees now work at OpenAI. It does not argue that hiring them is unlawful, but alleges OpenAI deliberately sought protected information rather than relying only on their general skills and experience.
Apple said it raised its concerns with OpenAI in February but received no meaningful response.
OpenAI spokesman Drew Pusateri told US media that the company was reviewing the complaint and had “no interest in other companies’ trade secrets.”
He said OpenAI remained focused on developing innovative technology.
Apple said the lawsuit followed the discovery of “significant evidence” and that it was taking legal action to protect its employees’ work and innovations.
The individual defendants and io Products have not issued separate detailed responses.
Apple cannot win merely by showing that OpenAI hired former employees, according to the US trade-secret law.
Under the 18 US Code 1839, Apple must identify information qualifying as a trade secret, demonstrate that it took reasonable steps to protect it and prove that the material had economic value because it was not publicly known.
Apple must also show that the defendants acquired, disclosed or used the information through improper means, including theft, deception or breaches of confidentiality obligations.
OpenAI could argue that its employees relied on general professional knowledge, independently developed its technology or used information that was public or insufficiently specific to receive trade-secret protection.
It could also dispute whether the allegedly obtained material was used in its products or caused measurable harm to Apple.
Apple is seeking preliminary and permanent injunctions preventing the defendants from possessing, using or disclosing its confidential information.
It also wants the return of Apple material, preservation of relevant electronic records and compensation for its losses or any benefit allegedly obtained by OpenAI.
US law may allow additional damages if trade-secret theft is found to have been willful and malicious. Apple has not specified the amount it is seeking.
The lawsuit does not automatically stop OpenAI from developing or selling hardware, according to analysts.
Apple would first have to persuade the court that it is likely to succeed and that continued use of the disputed information would cause harm that financial compensation alone could not repair.
A limited injunction could require OpenAI to isolate certain documents, restrict employees’ access or stop using specified manufacturing processes or suppliers.
A broader order could force the company to conduct a forensic investigation, remove allegedly tainted material or redesign parts of a product.
Such measures could delay OpenAI’s consumer hardware plans, increase development costs and complicate relations with suppliers.
The discovery process could also be disruptive, allowing Apple to seek internal communications, recruitment records, supplier correspondence and product-development documents.
Executives, engineers, recruiters and supplier representatives could be required to provide evidence or testimony.
The case could also create reputational and disclosure risks if OpenAI proceeds with plans to become publicly traded, as investors may seek details about possible damages, injunctions and whether planned products rely on disputed technology, according to analysts.
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