Apple sues OpenAI over trade secret theft allegations: Here's everything to know about lawsuit

Apple has filed an aggressive lawsuit against OpenAI, alleging that ChatGPT maker systematically stole trade secrets related to hardware development.

This marks a significant escalation in the growing rivalry between the two tech giants.

The case filed on Friday, July 10, names OpenAI, its hardware chief Tang Tan, former Apple employee Chang Liu, and io Products (an AI hardware firm acquired by OpenAI and founded by Tan). The suit also references famed former Apple design chief Jony Ive, though he was not named as a defendant.

The company claims that OpenAI employed stole sensitive files and attempted to gain access to physical hardware. As per the complaint, more than 400 former Apple employees now work at OpenAI.

According to an OpenAI spokesperson: “OpenAI has no interest in other companies. We remain focused on building innovative technology that empowers people everywhere.”

Industry analysts believe that the case is indicative of the general anxieties concerning Apple’s future in the age of artificial intelligence.

This litigation case also recalls the fight for talent that Facebook had with Google in the late 2000s when the social networking company decided not to follow the implicit code of conduct of Silicon Valley concerning talent acquisition. 

Facebook went ahead and created a $1.7 trillion company that competed directly with Google’s dominance in advertising.

Following the lawsuit filing, Apple stock closed at an all-time high of $317.31, with company now valued at $4.7 trillion.