Apple and OpenAI escalate legal battle over devices

A legal dispute between tech giants Apple and OpenAI intensified as the AI company rejected Apple's accusations and demanded the lawsuit be dismissed. Apple had filed a lawsuit in San Jose, California, alleging that OpenAI stole trade secrets from former Apple employees. Apple described OpenAI's actions as "deliberate theft," stating, "OpenAI should not be allowed to use Apple's secrets to gain an unfair advantage in its hardware efforts."

OpenAI, however, dismissed Apple's allegations as "baseless" and requested the lawsuit's dismissal. Federal judge Edward Davila is set to hear both sides' arguments on October 1. Apple and OpenAI remain partners, as ChatGPT has been integrated into Apple products since 2024. According to Apple's lawyers, over 400 former Apple employees now work at OpenAI.

Apple's case hinges on the urgency of the situation, arguing that every day without a court injunction allows OpenAI to incorporate stolen information into its hardware development. OpenAI denies these allegations, stating that the company has no interest in Apple's trade secrets and that it is building something entirely new. Apple accuses OpenAI's head of hardware, Tang Tan, of using his knowledge of Apple's unreleased products to extract information from job candidates by asking candidates to bring "prototypes" and design files to interview sessions.

OpenAI maintains that it follows industry norms and accuses Apple of failing to protect its data properly, citing the use of personal iCloud accounts for work and poor access management across systems when employees leave. This legal battle comes at a pivotal moment for OpenAI, which is valued at $852 billion and is preparing for a potential IPO.

OpenAI also faces intense competition from Anthropic, a rival AI lab founded by former OpenAI employees.