SAN FRANCISCO: Apple and OpenAI have intensified their legal battle over the ChatGPT maker’s secretive consumer device project, trading accusations over the alleged use of confidential information as competition in artificial intelligence hardware grows.
Apple sued OpenAI last month in San Jose, California, accusing the AI company of attempting to obtain its trade secrets through former Apple employees recruited to work on new consumer hardware.
In a court filing on Monday, Apple described OpenAI’s conduct as “repeated instances of deliberate theft” and argued the company should not be allowed to use its secrets to gain an advantage in hardware development.
OpenAI rejected the allegations on Wednesday, calling Apple’s lawsuit “baseless” and asking for the case to be permanently dismissed.
Federal Judge Edward Davila is expected to consider both sides’ requests at a hearing on October 1.
Partners turn rivals
Despite the dispute, Apple and OpenAI remain technology partners, with ChatGPT integrated into Apple products since 2024.
OpenAI argued that California law encourages employees to move between companies and said more than 400 former Apple employees currently work at the AI developer.
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Apple, however, says the alleged transfer of confidential knowledge is causing ongoing harm to its business.
The dispute has also drawn attention to OpenAI’s closely guarded plans to enter the consumer hardware market.
Reports suggest its first device could be a screenless smart speaker developed with LoveFrom, the design studio founded by former Apple design chief Jony Ive.
Bloomberg reported that the device could have a circular design, cost between $300 and $400 and launch in 2027. OpenAI has not confirmed those details.
Trade secret dispute
Apple has accused OpenAI hardware chief Tang Tan, a former Apple design executive, of using knowledge of unreleased products to obtain information from potential recruits.
OpenAI denies seeking Apple’s confidential material and says employees were repeatedly instructed not to disclose information belonging to previous employers.
The legal confrontation comes as OpenAI expands beyond software and explores new hardware while competing with major technology companies for talent and a stronger position in the rapidly developing AI market.
