Apple has requested a federal judge to block OpenAI's hardware development, alleging that the ChatGPT maker and two former Apple employees are using stolen trade secrets. The iPhone manufacturer claims irreparable harm will occur without a preliminary injunction.
In a filing late Monday in the Northern District of California, Apple accused OpenAI of orchestrating a months-long scheme to pilfer its hardware secrets as the startup works to develop its first consumer device. The lawsuit names Chang Liu, a former senior system electrical engineer at Apple, and Tang Yew Tan, an ex-vice president of product design for iPhone and Apple Watch, who now leads OpenAI's hardware division. Apple alleges Liu transferred confidential hardware files after his departure, while Tan reportedly forwarded supplier information to his personal email and advised new hires on circumventing Apple's exit procedures.
OpenAI, led by Sam Altman, has denied these accusations, branding the lawsuit "careless, aggressive and oddly personal." The AI company contends that it neither possesses nor desires any Apple trade secrets. OpenAI also released iMessages that it claims contradict Apple's narrative, showing Apple employees seeking technical assistance from Liu after he left the company.
Further complicating the dispute, OpenAI stated that Apple's outside lawyers mistakenly emailed the wrong individual at OpenAI after confusing two Asian surnames. According to OpenAI, the iPhone maker only acknowledged the error after the AI company pointed it out. Emails provided by OpenAI indicate that a partner at Weil, Gotshal & Manges sent a warning letter to OpenAI's general counsel, Che Chang, instead of a former Apple employee identified as Wang. The firm also noted that the lawyer thanked Chang for a phone call that OpenAI states never occurred, a claim Apple has since reportedly retracted.
Apple had asserted it warned OpenAI of the alleged theft in February but received no response. OpenAI claims the lawyers involved later apologized for the mix-up, and that Apple remained silent for five months before filing the lawsuit.
Apple is seeking expedited discovery, requesting depositions from Liu, Tan, and OpenAI staff members Yu-Ting Peng and an unnamed fourth employee who previously worked at Apple. The company stated in its filing that it would suffer irreparable harm without the injunction. OpenAI has agreed to some of Apple's demands, including halting future access and preserving evidence, but has refused to allow Apple's legal and forensic teams to examine its devices and networks.
The legal battle carries significant implications, as over 400 former Apple employees now work at OpenAI. Analysts suggest OpenAI is developing a phone-like AI device that could potentially compete with the iPhone and its ecosystem of apps.