OpenAI Hits Back At Apple In T... Note

OpenAI Hits Back At Apple In Trade Secrets Lawsuit

OpenAI is pushing back against Apple's accusations of stealing hardware secrets, blaming Apple's own employee management practices for the dispute. In a court filing, OpenAI asked a judge to reject Apple's request for an injunction to prevent the use of alleged trade secrets. Apple sued OpenAI in July, accusing the company and two former Apple employees, Tang Tan and Chang Liu, of misusing confidential information related to hardware. Tan, now OpenAI's chief hardware officer, and Liu, on OpenAI's technical staff, are at the center of the allegations. Apple claims Tan brought proprietary Apple parts for "show and tell" and Liu accessed files through an authentication bug. OpenAI denies these claims, stating Tan returned prototypes and used publicly available components as aids. They also argue Liu accessed files at the request of former colleagues needing assistance. Apple recently submitted new evidence, alleging Liu accessed confidential schematics and used proprietary data to train an AI agent. OpenAI counters that this highlights Apple's poor offboarding procedures, including encouraging personal iCloud use. The lawsuit could reveal details about how both tech giants recruit and protect trade secrets. The dispute arises amidst a partnership between Apple and OpenAI for AI integration in Apple products, but also OpenAI's aggressive expansion into consumer hardware with the acquisition of a startup founded by Jony Ive. Apple also partners with Google for AI features, while OpenAI argues California law permits employee movement between companies, and labels Apple's lawsuit as an attempt to stifle competition.
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