Technology

Apple sues OpenAI over alleged trade secret theft

Apple claims former employees took confidential information for OpenAI as the AI company pursues a costly hardware push.

Hana Yoshida

By Hana Yoshida · Markets Reporter

2 min read

Apple has sued OpenAI in federal court, accusing former Apple employees of taking confidential company information to aid OpenAI. The case could affect OpenAI’s hardware plans, which The Verge described as an expensive bet for the company.

The lawsuit was filed Friday in the U.S. District Court for the Northern District of California, according to The Verge. In the complaint, Apple alleges the former employees “steal[ed] Apple’s trade secrets for the benefit of OpenAI.”

Apple’s 41-page filing says the company treats a wide range of internal work as confidential, including product development, manufacturing, supply chain planning, technology research and other innovations. The complaint frames those materials as trade secrets that Apple says were improperly taken.

Another legal fight for OpenAI

The Verge reported that the Apple case is among the highest-profile legal actions OpenAI has faced this year. The company has already been dealing with a series of lawsuits, including one brought by the world’s richest man, according to the report.

The Apple case centers on OpenAI’s efforts beyond software. The Verge reported that OpenAI’s hardware ambitions are at stake, though the complaint excerpt does not detail the specific products or projects involved.

Apple’s filing, as described by The Verge, focuses on alleged conduct by former Apple workers rather than a public product dispute between the two companies. The lawsuit asks a federal court to address claims of trade secret misappropriation and breach of contract, according to the complaint title cited in the report.

The complaint was filed in Northern California, a venue that often handles disputes involving major technology companies. The case adds another legal front for OpenAI at a time when its business, partnerships and research practices are already under scrutiny in court, according to The Verge.

This story draws on original reporting from The Verge.