Apple accuses OpenAI and former employees of misusing confidential information related to hardware development, while OpenAI says the iPhone maker has failed to prove its claims
The competition to build the next generation of artificial intelligence devices has moved from Silicon Valley laboratories to federal court.
Apple and OpenAI are locked in a legal battle involving trade secrets, former Apple employees and OpenAI’s closely watched push into consumer hardware.
Apple sued OpenAI and former employees Tang Tan and Chang Liu in July, accusing them of misappropriating trade secrets related to hardware design, manufacturing and supply-chain operations.
OpenAI has now formally rejected those allegations, arguing that Apple has failed to show that confidential information was actually stolen.
About 400 Apple employees moved to OpenAI
The dispute also highlights the intense competition for talent between some of the world’s biggest technology companies.
According to court filings cited by Reuters, OpenAI has hired approximately 400 former Apple employees for its hardware initiative.
Apple argues that the hiring strategy gave OpenAI access to employees with knowledge of confidential information involving the company’s hardware operations.
OpenAI disputes that characterization and says California law allows employees to move freely between competing companies.
The company also argues that Apple’s own policies contributed to the dispute, including allowing employees to access work documents through personal iCloud accounts.
OpenAI is moving into consumer hardware
The lawsuit comes as OpenAI expands beyond software and ChatGPT into physical devices.
The company is working with former Apple design chief Jony Ive on a new generation of AI hardware, although details about the final product remain limited.
The project has attracted attention because a successful AI device could eventually compete for some of the functions currently performed by smartphones.
Analysts cited by Reuters have said OpenAI could be developing a phone or another type of consumer device.
The legal fight is unfolding despite the partnership Apple and OpenAI announced in 2024 to integrate ChatGPT into Apple’s ecosystem.
The case is being heard in federal court in San Jose, California.
Source: Reuters
