OpenAI Claims Ex-Employee Took 100+ Secret Files on Unreleased Device Back to Apple

Reviewed byNidhi Govil

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OpenAI alleges a former employee who returned to Apple after six months transferred over 100 confidential files about an unreleased device to personal accounts. The ChatGPT maker claims the employee later presented its product plans to Apple's senior leadership, raising concerns about trade secret theft as both companies battle in court.

OpenAI Alleges Former Employee Transferred Confidential Files to Apple

OpenAI has escalated its legal fight over trade secrets with Apple, filing new allegations that a former employee transferred more than 100 confidential files about an unreleased device to personal accounts before returning to the iPhone maker

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. The unnamed employee, who joined OpenAI from Apple and stayed for just six months, allegedly sent the files just after midnight in Singapore on June 2, his final day at the company

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Source: The Register

Source: The Register

The confidential files included detailed images of at least one unreleased OpenAI device, along with engineering data, manufacturing details, supplier information, and specifications for cosmetic finishes and reports on coating and sealing hardware components

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. According to the court filing submitted Wednesday in San Jose, California, the ex-employee took files to personal accounts before departing the ChatGPT maker

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Alleged Presentation to Apple Senior Leadership Raises Concerns

OpenAI's allegations extend beyond the file transfers. The company claims the former employee made a presentation about OpenAI's product plans to Apple's senior leadership months ago, including the tech giant's vice president of operations in Asia

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. This presentation allegedly occurred before Apple's latest push into AI-powered hardware, including its newly announced smart home products like the $299 HomeView display launched on Tuesday

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"OpenAI is very concerned that its trade secret and confidential information is now circulating inside Apple, where Apple engineers can shape Apple's upcoming products based on OpenAI's confidential and innovative work," the company stated in its filing

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. The timing of these allegations is significant, coming as Apple makes moves into AI hardware development and after the presentation allegedly took place months earlier

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Apple Denies Claims as Legal Dispute Intensifies

Apple has firmly rejected OpenAI's allegations, stating it has policies and procedures in place to ensure new employees do not use confidential information from previous employers

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. The company told Reuters it has found no evidence to support OpenAI's claims

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. In a letter dated October 12, Apple's lawyers noted that the phone numbers OpenAI identified did not match the employee's work number, and Apple found no OpenAI files on its servers

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Source: MacRumors

Source: MacRumors

The accusations mark a dramatic reversal in a legal dispute that began when Apple sued OpenAI in July, alleging that former Apple employees Chang Liu and Tang Tan took confidential engineering information about unreleased products to help the ChatGPT maker develop its own AI hardware

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. OpenAI denied those accusations at the time, stating it had "no interest in other companies' trade secrets"

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Court Proceedings and Potential Counterclaims

US District Judge Edward Davila indicated during a hearing that he is "highly likely" to grant Apple's request for a preliminary injunction prohibiting OpenAI from using Apple's allegedly stolen trade secrets

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. In response, OpenAI agreed not to use the alleged trade secrets while the case continues. As part of this agreement, forensic evidence will be collected from the devices of 14 staff members who may hold Apple data

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OpenAI has asked the court for time to investigate the matter and potentially bring counterclaims against Apple, though no such counterclaims have yet been filed

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. The judge also granted Apple expedited access to some forensic evidence on Tuesday, allowing the company to obtain OpenAI's hiring and interview records and question Liu, Tan, and Alyssa Peng under oath sooner

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Implications for AI Hardware Development

This corporate espionage dispute highlights the intensifying competition in unreleased AI hardware development between two tech giants. OpenAI acquired io, the hardware startup founded by former Apple design chief Jony Ive, for $6.5 billion last year, signaling its serious push into consumer hardware

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. Meanwhile, Apple has been developing its own AI capabilities, recently announcing it was revamping Siri with Google's Gemini models and severing ties with OpenAI after previously partnering in 2024 to integrate ChatGPT into Apple devices

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Source: PYMNTS

Source: PYMNTS

A preliminary injunction could mark a significant setback for OpenAI's AI hardware development efforts as it seeks to compete in the consumer device market

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. The case is likely to proceed to trial in October 2027, though OpenAI has indicated it could be ready by June 2027

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. As both companies continue to expand their AI product portfolios, this legal dispute over trade secret theft will likely shape how they approach talent acquisition and protect their unreleased device information going forward.

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