Apple sues OpenAI for trade secret theft and employee poaching

Published Jul 23, 10:37 AM UTC

Apple has filed a blockbuster lawsuit against OpenAI, accusing the AI startup of stealing trade secrets and poaching employees to develop hardware devices that could rival the iPhone. The lawsuit centers on OpenAI's hardware chief, Tang Yew Tan, a former Apple vice president, who allegedly took confidential supplier information. Apple claims OpenAI encouraged former employees to bring unreleased product samples and hardware components to job interviews. The legal battle follows OpenAI's $6.4 billion acquisition of io Products, a hardware startup co-founded by former Apple design chief Jony Ive, signaling OpenAI's ambition to create AI-powered devices. Apple is seeking damages and a court order to block OpenAI from using its trade secrets. OpenAI denies the allegations, stating it has no interest in other companies' trade secrets. The case highlights escalating tensions between the two tech giants, who previously partnered to integrate OpenAI technology into Apple's Siri.