OpenAI fights Apple trade-secrets suit as AI hardware race heats up

OpenAI is pushing back hard against Apple's trade-secrets lawsuit, filing a motion on Aug 5 to dismiss the case before discovery deepens. The ChatGPT maker argues that Apple did not identify legally protectable trade secrets or plausibly show that OpenAI misused them. In its motion, OpenAI stated, "OpenAI has no use, need or desire for Apple's trade secrets," adding that it is "building something entirely new and different from anything at Apple." The case stems from Apple's allegations that OpenAI orchestrated a campaign to obtain confidential hardware information through job candidates and former Apple employees. Apple is also seeking a preliminary injunction to block OpenAI from using any alleged trade secrets while litigation proceeds.

The dispute is more than a typical employee-poaching case—it reflects growing competition between the two tech giants over next-generation AI hardware. Analysts believe OpenAI is developing its own phone or other AI-focused devices, potentially challenging Apple's core business. Tensions are especially notable because OpenAI and Apple still partner on ChatGPT integration in Siri. OpenAI has hired hundreds of former Apple employees and is collaborating with ex-Apple design chief Jony Ive. OpenAI must formally respond to Apple's preliminary injunction request by Aug 17, with a hearing scheduled for Oct 1 in federal court in San Jose. The outcome could set precedents for how companies protect trade secrets when top talent moves between AI rivals.