Apple sues OpenAI over alleged ChatGPT trade secret theft

Apple has launched legal action against OpenAI, alleging that the maker of ChatGPT misappropriated trade secrets.

Tensions are rising between Apple and OpenAI, the company behind ChatGPT. Reports indicate that the Cupertino firm has taken OpenAI to court, claiming that former Apple employees took confidential know-how with them. Although OpenAI is currently best known for its artificial intelligence models, it is also working on AI-focused hardware products. As a result, Apple and OpenAI could end up competing in certain product categories (for now, it is unclear exactly what the ChatGPT creator is building).

A representative for Apple, quoted by The Guardian, said: “Significant evidence has recently emerged, suggesting that individuals employed by OpenAI have improperly stolen Apple’s secret and confidential information concerning our technologies, processes and unreleased products”. OpenAI, for its part, has stated that it has no interest in other companies’ trade secrets.

Serious allegations

If the claims are pursued fully, this could become one of the tech industry’s most consequential courtroom fights. According to The Guardian, Apple’s complaint names Tang Yew Tan, a former Apple vice-president who is now OpenAI’s head of hardware. Apple reportedly alleges that when he moved to OpenAI, he took information relating to Apple’s suppliers.

Apple also accuses its former vice-president of encouraging job applicants to disclose confidential details during interviews. The complaint, as reported by The Guardian, states: “He asked candidates for a role, who were still working at Apple, to bring ‘real parts’ from Apple to their interviews, as part of ‘show and tell’ sessions in which he and his team at OpenAI could obtain even more confidential information about Apple”.

The lawsuit further alleges that another ex-Apple employee who joined OpenAI left with an Apple-issued computer. This former employee is also accused of using a workaround to download confidential files.

From partners to future rivals? What we think

Despite the dispute, Apple and OpenAI are also partners. Their collaboration enables Apple Intelligence users, on iPhone and other compatible Apple devices, to access ChatGPT models. However, Apple has begun to put more distance between itself and OpenAI by opting to work with Google rather than OpenAI on its own AI development, called Siri AI.

The relationship between the two companies may become even more complicated once OpenAI releases its first hardware. OpenAI is working with Jony Ive, Apple’s former head of design, on product development. Rumours also suggest that the ChatGPT creator could be developing its own smartphone, which would compete directly with the iPhone.