Apple Sues OpenAI Over Alleged Trade Secret Theft

Could a single ‘LOL’ message worsen Apple and OpenAI’s relationship? A new lawsuit alleges trade secret theft, unauthorised access and misuse of confidential information.

Apple has filed a lawsuit against OpenAI in the US District Court in San Jose, California, accusing the artificial intelligence (AI) company and several former Apple employees of misappropriating confidential information to support OpenAI’s expanding AI hardware business.

The complaint alleges that former Apple engineer Chang Liu continued accessing Apple’s internal file servers after leaving the company for OpenAI because of a software flaw. Apple claims Liu discovered the vulnerability, retained access instead of reporting it, and informed a former colleague in a message that has become central to the case.

According to the filing, Liu wrote: “LOL, I found out I can access the [network storage], so funny.”

Apple alleges Liu downloaded confidential presentations, hardware designs, manufacturing information and testing procedures while employed at OpenAI.

- Advertisement -

The company further claims he failed to return his Apple-issued MacBook after leaving and remained in contact with former Apple employee Alyssa Peng, who allegedly continued sharing internal company information before later joining OpenAI’s hardware division.

The lawsuit also names OpenAI, its hardware subsidiary io Products, former Apple executive Tang Yew Tan, now OpenAI’s chief hardware officer, and references the AI hardware venture established by Tan, former Apple design chief Jony Ive, OpenAI chief executive Sam Altman, Evans Hankey and Scott Cannon. OpenAI acquired io Products in a deal reportedly valued at US$6.5 billion.

Apple further alleges that interviews conducted by Tan were used to gather information on unreleased Apple products and internal projects, describing the practice as a recurring pattern.

The company contends that OpenAI orchestrated a broader effort to obtain confidential technologies, processes and product information from former employees.

In a statement, Apple said it would take all appropriate steps to protect its intellectual property and innovations. OpenAI denied the allegations, stating that it has no interest in competitors’ trade secrets and remains focused on developing its own technologies.

The lawsuit marks a significant deterioration in relations between the two companies, which partnered in 2024 to integrate ChatGPT into Apple devices. The legal dispute also comes as OpenAI prepares for a widely anticipated initial public offering (IPO).

- Advertisement -
Loading form…
Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

Industry's Buzz

Xiaomi

Xiaomi’s Profits Declined for the Third Consecutive Quarter Amidst Global Memory Chip Shortage

0
“The prices of memory are still high and the competition remains fierce. But the short-term pressure will not change our strategy for the long...
EV Charging (Representational Image)

Fresh Bus and Charge Zone to Expand Partnership, Adding 400 New Buses

0
The expanded operations are expected to cover around 20 cities and 17 additional towns across Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana over the...
Samsung Chip

Samsung Delays 1.4nm Process at Its Fabs Till 2029

0
Samsung says it doesn’t plan currently to use High NA-EUV lithography technology for 2nm and 1.4nm processes. Instead, the technology will become useful during...
Semiconductor chip (representational image)

Government Approves 31 More ECMS Projects, Taking Total Sanctions to 106

0
The latest approvals underscore the government’s push to deepen domestic electronics manufacturing The Union government has approved 31 additional projects under the Electronics Component Manufacturing...

Agastya Green Energy to Invest ₹7,800 Crore in 12 GW Ingot and Wafer Manufacturing

0
The project comes as India continues to strengthen its domestic solar manufacturing ecosystem. Agastya Green Energy Limited, part of the Anubhav Agarwal Group, has announced...

Learn From Leaders

Navdeep Narula, Executive Director, Client and Endpoint Solutions, Ingram Micro, India

“Enterprise Computing Is Shifting From CPU to GPU And Now Toward NPU-Based Systems ”...

0
The shift from CPU to GPU to NPU-based computing is redefining today’s enterprise endpoints. In an exclusive conversation, Navdeep Narula from Ingram Micro discusses...

India’s Robotics Supply Chain Still Depends on Imported Chips

0
How do you build India’s physical AI future when critical robot components still come from overseas? Niqo Robotics reveals where the gaps remain.  India’s push...
Gadhadar Reddy, CEO and Founder, NoPo Nanotechnologies

How A Material Thinner Than Human Hair Could Transform EV Batteries And Electronics –...

0
What if a material 200,000 times thinner than a human hair could transform EV batteries, semiconductors, and advanced electronics? NoPo Nanotechnologies is making that...
Raja Rajeev Kumar, Mentor at IIT Startups, Chairman of the Board of Trustees, LaxmiRamaVarma Holdings International, and Founder and CEO, ChromoSoul Ventures

“Build Strong Startups, and Funding Will Follow”- Raja Rajeev Kumar, IIT Startups, LaxmiRamaVarma Holdings...

0
While AI and software startups attract attention and capital, electronics ventures often struggle for both. Raja Rajeev Kumar from IIT Startups, LaxmiRamaVarma Holdings International...
Athil Krishna, Founder & CEO, iHUB Robotics

“We are building humanoid robots that can replicate human tasks.”- Athil Krishna, iHUB Robotics

0
This Indian startup is building humanoid robots from scratch. Athil Krishna of iHUB Robotics speaks with Nidhi Agarwal from Electronics For You about the...

Startups

Dr Naveen Yanduru, CEO, Axiro Semiconductor Private Limited

“India Can Lead In IP—If It BacksIts Own Builders”

0
Axiro Semiconductor designs RF and satellite chips, ships millions worldwide, and retains its startup mindset while tackling complex technical challenges. In a conversation with...
Dr Sanjay Ahuja, Founder and CEO of Cionlabs, India

“We are solving India-specific challenges rather than offering generic ‘black box’ IoT solutions.”

0
From hybrid mesh networking to AI-enabled edge devices, an Indian IoT startup is developing home-grown solutions to improve connectivity, strengthen privacy and support the...
RTLS

Amimotion’s World-Smallest UWB Tags That Give Factories A Digital Nervous System For Physical AI

0
A Bengaluru startup is turning factories into intelligent spaces with tiny UWB tags, AI-powered visibility, and real-time tracking that can automate workflows, improve safety,...
Vervesemi IPs and ICs portfolio

Vervesemi Integrated AI/ML-Based Analogue IP Blocks For Chips

0
An Indian startup is developing semiconductor IP blocks that enable chips to adapt to signal imperfections through real-time AI/ML-driven learning within silicon systems. Most people...

Rapid Radio’s Indigenous RFID Reader Platform That Enables Numerous Applications

0
RapidRadio’s innovation is not another RFID reader but a complete electronics platform that enables manufacturers to develop their own solutions faster and with greater...