Lawsuit Exposes Tension Between Tech Giants

Lawsuit Exposes Tension Between Tech Giants

Source: Fortune

Summary

Apple has filed a lawsuit against OpenAI, alleging that the company has stolen trade secrets and poached employees from Apple’s hardware division. The lawsuit claims that OpenAI encouraged prospective employees to study confidential materials before interviews and brazenly bring hardware components and prototypes to show-and-tell sessions at OpenAI’s offices. OpenAI has responded, stating that it has “no interest in other companies’ trade secrets.” The lawsuit comes after months of tension between Apple and OpenAI, which are increasingly becoming rivals in the AI device market.

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The numbers tell one story. Apple claims that OpenAI has poached over 400 former Apple employees, including senior hardware and design leaders. OpenAI’s hardware division is led by Tang Tan, a former Apple executive who oversaw the design of the iPhone and Apple Watch. Apple alleges that Tan and other OpenAI employees have used confidential information to replicate Apple’s product-development machine. OpenAI’s response sounds like a familiar refrain: “We remain focused on building innovative technology that empowers people everywhere.” Meanwhile, the lawsuit reveals a pattern of behavior that Apple describes as a “systematic effort to acquire, retain and use” its confidential information.

Author: Evan Null