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Apple Sues OpenAI, Two Former Employees for Trade Secrets Theft

On July 11 local time, Apple officially filed a lawsuit against OpenAI and two former Apple employees in the U.S. District Court for the Northern District of California, accusing them of misappropriating trade secrets to accelerate OpenAI’s expansion into consumer-grade AI hardware. This litigation marks an escalation of the already strained cooperation between the two parties. According to the complaint, Apple alleges that OpenAI systematically obtained and utilized confidential hardware information through recruiting former staff members and engaging with its supply chain. The two co-defendants include Chang Liu, a former senior systems electrical engineer, and Tan Yew Tan, who previously served as vice president responsible for product design for the iPhone and Apple Watch. Apple accuses Liu of failing to return company computers upon departure and using authentication vulnerabilities to access Apple’s internal network, downloading dozens of confidential documents related to hardware R&D. Tan is accused of emailing personal accounts data concerning Apple suppliers and industry analysis prior to leaving his position, and allegedly encouraging job applicants to bring Apple components to interviews at OpenAI for demonstration purposes. Apple further stated that it proactively contacted OpenAI in February regarding potential leaks of relevant confidential information, hoping to initiate dialogue, but received no response. More than 400 former Apple employees have joined OpenAI so far; however, Apple emphasized that hiring former employees is not illegal per se—the core issue lies in whether Apple’s trade secrets were unlawfully used. In response, OpenAI declared that it has “no intention of obtaining other companies’ trade secrets” and expressed its commitment to continuing focus on developing innovative technologies capable of empowering users worldwide. Analysts suggest this case reflects a shift in the relationship between the two firms from collaboration toward competition. Although Apple has integrated ChatGPT into products such as Siri and Apple Intelligence, competition in the next-generation AI terminal market is intensifying as OpenAI acquires io Products—a hardware firm founded by former Apple designer Jony Ive—and continues advancing its own AI hardware initiatives. Consequently, this legal dispute over trade secrets and consumer-grade AI hardware may serve as a significant precedent in future competitions within the AI hardware sector.

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