AAPL Stock Unmoved After-Hours - Apple Sues OpenAI Over Alleged 'Rotten' Campaign To Steal AI Hardware Secrets
Article excerpt
Apple Inc. (AAPL) has sued OpenAI in a federal court in California, alleging that the artificial intelligence company orchestrated a widespread effort to steal trade secrets and hardware designs. The lawsuit alleges that OpenAI encouraged current and former Apple workers to hand over confidential documents, blueprints, and physical components. Apple claims this misconduct was guided by OpenAI’s leadership to jump-start its own competing AI devices. “At every level, from members of its technical staff to its chief hardware officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information,” the Cupertino, California-based tech giant said in the suit. “As a natural result, OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.” AAPL stock was flat after-hours at the time of writing. The stock eased on Friday but recorded its second consecutive week of gains. The lawsuit focuses heavily on Tang Tan, OpenAI’s chief hardware officer. Tan previously worked at Apple for 24 years, serving as vice president of product design for the iPhone and Apple Watch. Apple claims Tan met with OpenAI months before leaving his job in early 2024 and shared secret details about Apple’s...
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OpenAI stepped into hardware last year when it bought io Products Inc. - a startup co-founded by Tan and former Apple design head Jony Ive - for over $6 billion.
