Apple and OpenAI Head to Court Over AI Trade Secrets
Apple and OpenAI are in court in San Jose, with two opposed motions heard at once. One would bind OpenAI for the length of the case; the other would end it outright.
US District Judge Edward Davila has both motions before him, as reported by Bloomberg. This is the first substantial hearing since Apple sued OpenAI in July.
Apple's Request:
- An order requiring OpenAI to stop using any confidential information taken from Apple and to stop seeking more.
OpenAI's Request:
- Dismissal of the case, arguing that Apple has identified no specific trade secret, only broad categories of hardware information.
The Case:
- Involves two individual defendants: Tang Tan, OpenAI’s hardware chief, and Chang Liu, a former iPhone engineer, alleged to have coordinated misconduct. io Products, a design firm, is also a defendant.
Apple's Win:
Apple secured part of its request on Tuesday:
- Davila ordered forensic images, checklists, scripts, interview summaries, and Liu’s messages to a former colleague since January to be handed over.
Apple's Loss:
- Some research documents on metal finishes, power management, and battery function were left in ordinary discovery.
- Apple’s category of “Apple Originated Information” was deemed amorphous, according to 9to5Mac.
OpenAI's Argument:
OpenAI claims Apple’s own systems encouraged the alleged theft. They argue that Apple cannot turn the foreseeable consequences of its policies into evidence of theft.
Apple's Counter:
Apple distinguishes between the iCloud access issue, which is not its core allegation, and the core allegation that Liu exploited an authentication flaw to access Apple network storage and download files.
At Stake:
- OpenAI is building a new family of AI devices, starting with a doughnut-shaped speaker priced above $300 and due in 2027.
- The suit has already slowed their work since July, and OpenAI is preparing to list at a targeted $1.4T.
Legal Jurisdiction:
- In Europe, this would be a contract-based issue.
- In California, Apple must prove theft; in Germany, a two-year restraint is possible if the employer pays at least 50% of prior pay.