(RTTNews) – Apple Inc. (AAPL) announced that it filed a lawsuit in the U.S. District Court for the Northern District of California against two former senior employees, Chang Liu and Tang Yew Tan, along with OpenAI Foundation, OpenAI Group PBC, and io Products LLC. The complaint alleges trade secret misappropriation and breach of contract.
Apple claims that Liu, a former Senior System Electrical Engineer, and Tan, a former Vice President of Product Design for iPhone and Apple Watch, took confidential information to benefit OpenAI’s hardware ambitions. According to the filing, Liu retained an Apple-issued laptop, exploited a network bug to access Apple’s systems, and downloaded confidential files related to unreleased products. Tan, now OpenAI’s Chief Hardware Officer, is accused of using Apple’s proprietary supplier and product information to recruit employees and advance OpenAI’s hardware projects.
The complaint further alleges that OpenAI, through its acquisition of io Products, engaged in a coordinated effort to obtain Apple’s trade secrets, including manufacturing techniques and supplier relationships. Apple argues that OpenAI’s hardware business is “rotten to its core” due to reliance on stolen information.
Apple states it attempted to raise concerns with OpenAI earlier this year but received no response, prompting the lawsuit. The company seeks to stop the alleged misuse of its trade secrets and recover damages.
AAPL closed Friday’s regular trading at $315.32 down $0.90 or 0.28%.
