OpenAI rejected Apple's claims that it stole trade secrets, arguing the dispute stems from Apple's failure to demonstrate any confidential information was taken by former employees. The AI lab, led by CEO Sam Altman, called the lawsuit a mess of Apple's own making and accused the iPhone maker of using the case to slow a potential competitor. Apple sued OpenAI and two former employees, Tang Tan and Chang Liu, in July, alleging misappropriation of hardware design, manufacturing, and supply-chain secrets as OpenAI expands into consumer devices. OpenAI noted it has hired about 400 employees from Apple for its hardware initiative. The filing also claimed Apple encourages workers to use personal iCloud accounts for work documents, making it difficult to separate personal and company information, and that Apple's policy of immediately escorting departing employees prevents proper handover of devices and files.
OpenAI denied Apple’s allegations of trade secret theft on Monday, saying the iPhone maker failed to show any confidential information was stolen by former employees.
“This dispute is a mess of Apple’s own making, and it is trying to blame everyone else,” OpenAI said in a filing late Monday in US District Court in San Jose, California. Apple sued OpenAI and former Apple employees Tang Tan and Chang Liu in July, accusing them of misappropriating trade secrets related to hardware design, manufacturing and supply-chain operations as the ChatGPT maker pushes into consumer devices.
The AI lab, led by chief executive Sam Altman, contends Apple is using the lawsuit to slow a potential competitor and discourage employee departures. OpenAI has hired roughly 400 employees from Apple for its hardware initiative, the two companies have written in court filings. The lawsuit represented a dramatic escalation of tensions between the two companies, which just two years ago forged a partnership intended to boost ChatGPT’s reach and help Apple gain a firmer footing in AI.
But the relationship quickly soured as competition in the AI industry intensified. In its original lawsuit, Apple argued that OpenAI’s hiring of Apple employees was part of the AI lab’s strategy to learn a competitor’s secrets. Apple said Tan and Liu both accessed internal Apple files after they left the company.
OpenAI said on Monday that Apple encourages its employees to use personal iCloud accounts to access Apple work documents and perform their work functions, making it difficult for departing employees to separate personal and company information. OpenAI said Apple’s policy of immediately escorting departing employees from its premises does not give them enough time to return company devices, transfer internal files back to the company or hand over responsibilities.
In the filing, Liu said any access to Apple documents after his departure was done to help former Apple colleagues locate files or answer questions related to Apple work. He said Apple employees repeatedly contacted him for assistance after he left. Tan, who spent 24 years at Apple, said he returned Apple prototypes before departing and only retained non-confidential materials, including an employee departure checklist that was not confidential.
Employees “can leave a company like Apple that has struggled to adopt AI and move to an exciting startup that builds innovative products”, OpenAI wrote.
“Apple may not like those choices. But it cannot claim those choices are unlawful, and it cannot use its own sloppy procedures to blame others for its own mess. ” - ReutersA Wicklow woman in Marbella: ‘I would make friends in the summer and they would then go home.
But I found my tribe’Farmer Phil: ‘The story goes that a tree in our field was planted by Cromwell’s grandchildren 350, 400 years ago’Young people’s working woes and what David Beckham tells us about advertising today
Openai Apple Trade Secrets Lawsuit AI Competition Hardware Devices Employee Poaching
Ireland Latest News, Ireland Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
How UniCredit CEO outmanoeuvred Germany on CommerzbankCampaign by Germany’s second largest lender against a deal has faded after UniCredit amassed a stake approaching 50%
Read more »
Trump Renames Lake Ontario to Lake America Amid US-Canada Trade DisputeUS President Trump announced on Thursday the renaming of the smallest Great Lake, Lake Ontario, to Lake America in an escalating trade feud with Canada. The order affects only the US Geographic Names Information System and has no impact on Canadian naming conventions. Google Maps stated it will display Lake America for US users while Canadian users continue to see Lake Ontario, and others see both names. Canadian Prime Minister Mark Carney rejected the change, while Democratic New York Governor Kathy Hochul and Republican Vermont Governor Phil Scott also opposed the decision. Ontario Premier Doug Ford unveiled a lakeside sign reaffirming the original name. The dispute is part of a broader trade conflict involving a 50% US tariff on Canadian steel and retaliatory tariffs from Ottawa.
Read more »
Apple's new CEO Ternus faces challenges on AI and geopolitics ahead of iPhone launchTernus, former head of hardware engineering, takes over as Apple CEO ahead of the September 9 launch expected to feature Apple's first foldable iPhone. He faces major challenges including Apple's lag in AI integration, delays to a smarter Siri pushed back from 2024, regulatory hurdles in Europe under the Digital Markets Act, and rising costs from AI chips. Geopolitical tensions add pressure, with Tim Cook expected to help manage ties with the US and China. COO Sabih Khan and CFO Kevan Parekh are set to take on larger roles under Ternus's leadership.
Read more »
Minister Harris announces investment scheme and signals broader capital tax reformMinister for Finance Simon Harris has released further details of a planned investment account scheme aimed at making stock market investment easier. The announcement also signals an intent to lower retail investment taxation, though not in the current budget, alongside commitments to examine easing inheritance tax burdens. The article cautions that reducing capital taxes without addressing wider fiscal trade-offs risks hollowing out the tax base, especially given reliance on volatile corporation tax receipts and looming ageing-population costs. It acknowledges legitimate reform needs, including simplifying the deemed disposal rule and easing the administrative burden on small investors.
Read more »
