OpenAI Challenges Apple Lawsuit Over Secretive AI Device

SAN JOSE: (News Desk) – The legal battle between Apple and OpenAI over the ChatGPT maker’s secretive hardware ambitions has intensified, with OpenAI asking a US court to permanently dismiss Apple’s lawsuit and describing the allegations as baseless.

Apple filed the lawsuit last month in San Jose, California, accusing OpenAI of using former Apple employees to obtain confidential information and trade secrets as it develops its own consumer hardware products.

In a court filing, Apple accused OpenAI of repeated and deliberate theft, arguing that the AI company should not be allowed to gain an advantage in the hardware market through information allegedly taken from Apple.

OpenAI rejected the claims in a filing submitted Wednesday, calling Apple’s lawsuit fundamentally flawed and asking the court to dismiss the case permanently. A federal judge, Edward Davila, is scheduled to consider the competing requests at a hearing on October 1.

Despite legal battle?

Despite the legal dispute, Apple and OpenAI remain business partners. ChatGPT has been integrated into Apple products since 2024.

OpenAI argued that Apple was using the lawsuit to compensate for shortcomings in attracting and retaining AI talent. Its lawyers also pointed to California laws that generally support employees moving between companies.

Apple’s complaint reportedly states that more than 400 former Apple employees now work at OpenAI. The iPhone maker has also raised concerns about OpenAI’s hardware chief Tang Tan, a former Apple design executive, alleging that employees and job candidates were exposed to confidential information during recruitment.

OpenAI denied the allegations and said Tan repeatedly instructed employees and recruits not to disclose confidential information belonging to previous employers.

The dispute has also drawn attention to OpenAI’s reported first hardware product, which is expected to be developed in collaboration with LoveFrom, the design firm founded by former Apple design chief Jony Ive. Reports have described the device as a screenless smart speaker, although OpenAI has not publicly confirmed the leaked details.

Apple has asked the court to intervene urgently, while OpenAI maintains that it is developing an entirely new product and has no need or intention to use Apple’s trade secrets.

The case comes as OpenAI continues its rapid expansion in the AI industry and faces intense competition from rival companies, including Anthropic.