Apple and OpenAI appear headed for a legal confrontation, but a new report suggests the dispute may have taken a different course had an error involving email addresses not derailed early discussions between the two companies.
Apple has sued OpenAI, alleging that the AI company misappropriated trade secrets through former Apple employees to accelerate the development of its consumer hardware products. However, a report by NBC News claims that communication between the two companies broke down after an Apple lawyer mistakenly confused the names and email addresses of two OpenAI employees with the surnames Wang and Chang.
In its lawsuit, Apple alleges that OpenAI "never responded" to its concerns regarding the matter and ignored requests to engage in discussions. According to the NBC News report, however, OpenAI did respond to Apple's initial outreach in February.
The report further states that the discussions ended abruptly after the lawyer's email mix-up involving the two OpenAI employees.
The dispute centres on Apple's allegations that OpenAI and several former Apple employees improperly used confidential hardware-related information to accelerate the development of OpenAI's upcoming consumer devices. OpenAI has been working on a range of AI-powered hardware products and is reportedly planning to introduce a smart speaker as early as next year.
OPENAI SAYS APPLE'S CASE LACKS EVIDENCE
OpenAI, which had earlier rejected Apple's allegations, has reiterated that it sees no basis for the lawsuit.
In a statement to Bloomberg, the company said: "While we take these allegations seriously, we're not aware of any evidence that this complaint has merit."
OpenAI also said it supports "fair competition and allowing people the freedom to work wherever they choose."
APPLE'S ALLEGATIONS
Apple's lawsuit names Chang Liu, a former senior system electrical engineer, and Tang Yew Tan, the company's former Vice President of Product Design for the iPhone and Apple Watch, as defendants.
According to the complaint, Liu failed to return a company-issued work laptop and later exploited an authentication vulnerability to gain access to Apple's internal network, downloading what Apple describes as dozens of confidential hardware-related files.
Apple also alleges that Tang, who now serves as OpenAI's Chief Hardware Officer, systematically retained confidential information before leaving the company. The lawsuit claims he emailed himself documents relating to Apple suppliers and internal industry analyses, which Apple alleges could benefit OpenAI's hardware programme.
APPLE CRITICISES OPENAI'S HARDWARE PROGRAMME
Apple further alleges that OpenAI established processes that enabled former Apple employees to bypass the company's security protocols.
The lawsuit also claims that a former iPhone engineer who later joined OpenAI accessed Apple's systems to obtain engineering presentations and other confidential information.
Beyond accusing OpenAI of misusing trade secrets, Apple argues that the company's hardware division was built on an improper foundation, describing it in the complaint as "rotten to its core."
According to Apple, more than 400 former Apple employees are now working at OpenAI.
"That OpenAI now employs people who were once entrusted with Apple's trade secrets does not entitle OpenAI to use that information to jumpstart its hardware efforts," Apple states in its complaint.
Last year, OpenAI acquired hardware startup io Products, founded by former Apple design chief Jony Ive, in a $6.5 billion deal. Apple has named io Products as a defendant in the lawsuit, although Ive himself is not a party to the case.
Earlier this year, reports also suggested that OpenAI had been exploring legal options against Apple over the companies' agreement to integrate ChatGPT with Siri for handling more complex user queries on iPhones.
