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Apple, OpenAI clash in court over secret device project

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources In the courts
  • Apple accused OpenAI of stealing trade secrets through former employees for its secretive hardware project.
  • OpenAI called Apple's lawsuit "baseless" and "rotten to its core," seeking dismissal and accusing Apple of using the suit to cover its own shortcomings.
  • The two companies remain partners, with ChatGPT integrated into Apple products, while OpenAI is reportedly developing a smart speaker.

A legal battle between Apple and OpenAI intensified this week, with the AI developer labeling the iPhone maker's allegations of trade secret theft as "baseless." Apple had sued OpenAI last month, accusing the ChatGPT creator of orchestrating a campaign to steal its trade secrets via former employees as it develops its own consumer hardware device.

OpenAI should not be permitted to use Apple’s secrets to gain an unjust head start in its hardware ambitions.

— Apple's lawyersApple's argument in its court filing regarding OpenAI's alleged use of stolen trade secrets.

In a new court filing, Apple described OpenAI's actions as "repeated instances of deliberate theft," arguing that OpenAI should not gain an "unjust head start" in hardware ambitions using Apple's secrets. OpenAI countered on Wednesday, calling for the case's permanent dismissal and describing Apple's complaint as "rotten to its core." OpenAI's lawyers stated that Apple's lawsuit is a pretext to compensate for its own failures in talent acquisition and AI integration.

Apple built its reputation by paying close attention to the smallest details. This lawsuit does the opposite.

— OpenAI's lawyersOpenAI's response to Apple's lawsuit, characterizing it as baseless.

Despite the legal conflict, Apple and OpenAI remain partners, with ChatGPT integrated into Apple products since 2024. OpenAI's legal team invoked California laws that encourage employee mobility, which they credit for the state's tech revolution. The lawsuit follows reports of OpenAI developing a secretive hardware device, potentially a smart speaker, in collaboration with Jony Ive's studio. Leaked details suggest the device would be circular, about the size of a hockey puck, and cost between $300 and $400, with a potential 2027 launch. OpenAI has not confirmed these leaks.

Apple should not be permitted to use a baseless and pretextual lawsuit to make up for its shortcomings in the market for talent and retaining its employees, and its failures to integrate AI into its products.

— OpenAI's lawyersOpenAI's defense against Apple's lawsuit, suggesting it's a cover for Apple's own issues.

Apple's lawyers emphasized the ongoing harm, stating that "every day that passes without an injunction allows OpenAI to embed their knowledge of Apple’s stolen information into its hardware development efforts." The iPhone maker's complaint highlights the urgency of the situation, seeking to prevent OpenAI from benefiting from allegedly stolen proprietary information.

The harm is happening now.

— Apple's lawyersApple's lawyers emphasizing the immediate damage from OpenAI's alleged actions.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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