A legal confrontation between tech giants Apple and OpenAI has escalated this week, centering on allegations of trade secret theft related to a secretive project by OpenAI aimed at launching a new technological device.
Last month, Apple filed a lawsuit in San Jose, California, accusing OpenAI of orchestrating a campaign to steal trade secrets through former employees. In a court filing on Monday, Apple described OpenAI’s actions as «repeated instances of deliberate theft,» asserting that the company should not be allowed to use Apple’s secrets to gain an unfair advantage in its hardware ambitions.
In response, OpenAI labeled Apple’s accusations as «baseless» and filed a motion to have the case dismissed permanently, which, if granted, would prevent Apple from re-filing the same claims. OpenAI’s attorneys contended that Apple’s lawsuit contradicts its reputation for meticulous attention to detail, describing the complaint as «rotten to the core.»
Upcoming Court Hearing
Federal Judge Edward Davila is set to consider both parties’ motions during a hearing scheduled for October 1.
Partnership Amidst Rivalry
Despite the ongoing legal dispute, Apple and OpenAI maintain a partnership, with ChatGPT integrated into Apple products since 2024. OpenAI’s attorneys argued that Apple should not be allowed to use a frivolous lawsuit as a pretext to compensate for its shortcomings in talent acquisition and employee retention, as well as its failures in integrating AI into its products.
According to the initial lawsuit, over 400 former Apple employees are currently working at OpenAI. Apple’s lawyers claimed that «harm is occurring now,» adding that each day without a judicial order allows OpenAI to incorporate knowledge from the alleged stolen information into its hardware development efforts.
Details of the Alleged Trade Secrets
To underscore the urgency of their claims, Apple’s attorneys presented a TechCrunch article detailing leaked information about OpenAI’s anticipated device, described as a screenless smart speaker designed in collaboration with LoveFrom, the studio founded by Jony Ive, former chief design officer at Apple.
Reports suggest that the device will be circular, resembling a donut and approximately the size of a hockey puck, with a projected price range of $300 to $400, and a launch planned for 2027. OpenAI has yet to confirm these details.
Allegations Against OpenAI’s Hardware Chief
OpenAI’s court documents state that the company has no use, need, or desire for Apple’s trade secrets, and they pointed out that Apple has not specified any particular product, such as the iPhone, that is allegedly being copied. Apple has accused Tang Tan, OpenAI’s hardware chief and former Apple design vice president, of leveraging knowledge of unreleased Apple products to extract information from job candidates.
Apple claims that OpenAI requested candidates to bring «prototypes» of design files to interviews. In its defense, OpenAI argued that this practice is standard in the industry. Furthermore, OpenAI’s lawyers stated that Tan «repeatedly instructed new recruits and their team not to bring or disclose confidential information from former employers,» while also accusing Apple of failing to protect its own information.
Context of the Legal Dispute
This case arises at a critical time for OpenAI, which is valued at $852 billion and is exploring a potential public offering. The AI lab is also engaged in fierce competition with Anthropic, the developer of the AI Claude, founded by former OpenAI employees.
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