Apple Sues OpenAI Over Trade Secrets as Netflix Pivots to Bundling

Apple has filed a lawsuit against OpenAI accusing the company of stealing trade secrets related to hardware design, marking a dramatic breakdown between two companies that were still partners just months ago. The suit specifically names two former Apple employees now at OpenAI: Tang Tan, a former hardware designer who worked on the iPhone, Apple Watch, and iPod who is now OpenAI's chief hardware officer, and Cheng Liu, a former electrical engineer. According to Apple's complaint, Tan told OpenAI job candidates to bring actual Apple parts during interviews, and Liu downloaded confidential hardware-related files as he was transitioning to OpenAI. Liu allegedly wrote to a former colleague, "LOL I found out I can access the network storage. So funny."

OpenAI responded by saying it has "no interest in other companies' trade secrets" and remains focused on building innovative technology. But the lawsuit is specific: Apple wants OpenAI to stop using any trade secrets and to scrap any hardware plans that may have been influenced by Apple's proprietary information, including supply chain data and metal finishing techniques. Apple first raised the issue of leaks to OpenAI back in February but never received a response.