3 weeks ago
Apple, OpenAI Clash in Court Over Trade Secrets
Apple is a company that makes iPhones.
OpenAI is a company that makes a smart helper called ChatGPT.
Apple is upset because some people who used to work for Apple now work at OpenAI.
Apple thinks those workers might be sharing secret Apple ideas with their new company.
OpenAI is building a new talking speaker, and Apple worries it is using Apple's secret plans.
OpenAI says the lawsuit is not fair and that Apple just wants to blame someone else.
OpenAI says it is building something brand new and different.
Both companies told a judge their side of the story.
The judge will decide what to do on October 1.
Until then, the two companies still work together on some things.
Apple sued OpenAI last month in San Jose, California, accusing it of orchestrating a campaign to steal trade secrets via former employees for a consumer hardware device.
Apple's lawyers described OpenAI's actions as 'repeated instances of deliberate theft' and are seeking an injunction.
OpenAI called the lawsuit 'baseless' and 'rotten to its core,' requesting a permanent dismissal that would bar a refiled suit.
The dispute centers on OpenAI's rumored screenless smart speaker, designed with LoveFrom and Jony Ive, reported to cost $300-$400 with a 2027 launch.
Federal judge Edward Davila will consider both requests at a hearing on October 1; the two companies remain partners via ChatGPT's integration in Apple products.
More than 400 former Apple employees currently work at OpenAI, according to the initial complaint.
- Who
- Apple and OpenAI, with federal judge Edward Davila presiding; OpenAI hardware head Tang Tan and LoveFrom founder Jony Ive feature in the dispute.
- What
- A lawsuit in which Apple accuses OpenAI of stealing trade secrets via former employees for its hardware ambitions, while OpenAI seeks dismissal of the case as baseless.
- Where
- Federal court in San Jose, California; related reports concern devices linked to San Francisco-based OpenAI.
- When
- Apple filed suit last month; Apple filed a new court document Monday and OpenAI responded Wednesday, ahead of an October 1 hearing.
- Why
- Apple claims OpenAI is using allegedly stolen secrets to gain an unfair head start in developing its own consumer hardware device; OpenAI argues the suit is pretextual and meant to mask Apple's shortcomings.
Apple's Position
OpenAI's Position
Trade Secret Theft
Apple's Position
OpenAI's actions amount to 'repeated instances of deliberate theft,' and an injunction is needed because 'the harm is happening now.'
OpenAI's Position
The lawsuit is 'baseless' and 'rotten to its core,' and 'OpenAI has no use, need or desire for Apple's trade secrets.'
Employee Mobility
Apple's Position
OpenAI orchestrated a campaign to extract secrets from former Apple employees, including asking job candidates to bring 'prototypes' to interviews.
OpenAI's Position
California laws encourage employees to take new jobs, and Apple should not use the suit to cover its failures in retaining talent and integrating AI.
Blame for the Dispute
Apple's Position
OpenAI's hardware head Tang Tan used knowledge of unreleased Apple products to pressure job candidates for confidential information.
OpenAI's Position
Tan repeatedly told recruits not to bring former employers' confidential information, and Apple failed to protect its own data, including via personal iCloud use.
Key facts
- Hearing Date
- October 1 (federal judge Edward Davila)
- Court Location
- San Jose, California
- Device At Issue
- Screenless smart speaker with LoveFrom (Jony Ive's studio); reported as circular, hockey-puck-sized, $300-$400, 2027 launch
- Employee Movement
- Over 400 former Apple employees now work at OpenAI, per the complaint
- OpenAI Valuation
- Reported $852 billion, working toward a potential IPO
- Business Relationship
- Partners since 2024, with ChatGPT integrated into Apple products
- Key Allegation Against Tang Tan
- Accused of using knowledge of unreleased Apple products to extract information from job candidates; OpenAI says it follows standard industry practices
Quotes
OpenAI representative
OpenAI spokesperson
“"OpenAI should not be permitted to use Apple's secrets to gain an unjust head start in its hardware ambitions,"”
NDTV
“"Apple built its reputation by paying close attention to the smallest details. This lawsuit does the opposite,"”
NDTV
Sources
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