Apple to OpenAI: If you have nothing to hide, you have nothing to fear

Just because Apple now possesses AI, a novel folding iPhone, and has a newly appointed CEO does not mean the legal battle with OpenAI has concluded. According to a new report, Apple is seeking permission to inspect the hardware OpenAI is constructing, claiming that OpenAI has engaged in trade secret theft to aid in its hardware design and development.

Apple argues that OpenAI has hired around 400 former Apple employees, including its chief designers, suggesting that part of this process may involve exfiltrating Apple's trade secrets. Apple's request to Judge Edward J. Davila appears reasonable, as it wants to ensure that its trade secrets have not been abused during the development process.

Apple's legal team emphasizes that it is unfair to allow OpenAI to defend itself by claiming that its unreleased and unseen product does not contain any trade secrets without permitting Apple and the court to verify this claim. While Apple does not explicitly state this, its request can be paraphrased as telling OpenAI, "Let us see what you are building; if you have nothing to hide, you have nothing to fear."

However, the court may consider that granting Apple access to OpenAI's work could increase the risk of IP theft. A likely compromise may be to appoint a trusted, independent third-party expert witness to assess OpenAI's developments. Precedents for this approach can be seen in cases where Waymo sued Uber or AMCS sued Sinovel. Although the cases are not identical, it seems like a logical next step for the court.

OpenAI may also attempt to buy time by suggesting such an approach. Regardless of the outcome, if Apple is found to have infringed on Apple's trade secrets, the responsible course of action will be damage control, involving more dialogue (jaw-jaw) and a significant intake of humble pie. The case, numbered 5:26-cv-07078, continues to progress.