What does Apple's lawsuit against OpenAI for trade secret theft say

Apple filed a lawsuit against OpenAI, accusing it of systematically appropriating its intellectual property. The tech giant claims that the artificial intelligence company solicited information about products not yet released to the market from former employees and candidates.

The lawsuit threatens to condition OpenAI's plans regarding devices, even before the legal case is resolved. Apple seeks compensation for damages, as well as an order requiring the firm to cease the alleged conduct and destroy the disputed material.

What Apple accuses OpenAI of

According to the lawsuit filed last week, Apple claims that OpenAI instructed its new employees on how to bypass the company's security procedures. To do this, it allegedly used a checklist created by the former head of iPhone design.

Apple clarified in its court documents that the lawsuit focuses exclusively on trade secrets and described OpenAI's work in hardware as nascent.

OpenAI's response to Apple's lawsuit

OpenAI declined to comment on its plans regarding devices. In its response to the lawsuit, filed on Friday, it stated that "it has no interest in the trade secrets of other companies" and that "it will continue to focus on developing innovative technology."

More than 400 former Apple employees work at OpenAI

OpenAI currently employs over 400 former Apple employees, whom it attracted with high compensation packages. In response, Apple implemented unusually high retention bonuses.

The company even sent senior executives to persuade senior engineers to stay in Cupertino, California. The talent drain has become one of Apple's biggest internal concerns in recent months.

More than 400 former Apple employees work at OpenAI

Eddy Cue's testimony on the future of the iPhone

Apple's services chief, Eddy Cue, had warned during the antitrust trial against Google's search engine that artificial intelligence could transform the device market.

"In ten years, I might not need an iPhone anymore, no matter how crazy that sounds," Cue stated at that time.

How the lawsuit could affect OpenAI's plans

The mere filing of the lawsuit already represents a hurdle for OpenAI. The accusations could lead Apple employees to reconsider their move to the artificial intelligence company, as attending an interview could expose them to scrutiny from Apple's security team.

Increased caution in OpenAI's engineering culture
More legal reviews and internal controls
Possible slowdown in the hiring process
Risk of product redesign if the accusations are proven

Bloomberg Intelligence noted that "Apple is likely to obtain specific injunctions related to OpenAI's device initiative", which could require isolating the disputed materials and certifying compliance.

OpenAI's plan to launch a device in 2027

Despite the lawsuit, OpenAI still believes it is on track to announce its first product this year and launch it in 2027, according to a source familiar with the matter cited by Bloomberg.

The company has explored categories such as smart speakers and wearable devices, although its ultimate goal is to launch a direct competitor to the iPhone. The first product is likely not to be a smartphone.

The devices Apple is working on

Apple, in parallel, is developing AI-based wearable devices, including new AirPods, a pendant, and smart glasses.

The company is also advancing a range of home devices, such as a desktop robot, a control hub with facial recognition, and a security system.

The cancer diagnosis that he had overcome

What Sam Altman said about Apple's lawsuit

The CEO of OpenAI, Sam Altman, posted on X that "he is not afraid of Apple" and that he has "great respect" for the company.

Apple, on the other hand, expressed a different view in its lawsuit: "OpenAI's hardware business now rests on the most unstable foundations, rotten to the core due to its illegal dependence on stolen trade secrets", the company wrote.