Apple and OpenAI escalate legal battle over devices

What happened

A legal battle between Apple and OpenAI over the ChatGPT-maker's secretive device project escalated this week when the artificial intelligence (AI) developer called the iPhone-maker's allegations "baseless" and asked for the lawsuit's dismissal. " "OpenAI should not be permitted to use Apple's secrets to gain an unjust head start in its hardware ambitions," the iPhone-maker says. "Apple built its reputation by paying close attention to the smallest details.

Why it matters

"Apple should not be permitted to use a baseless and pretextual lawsuit to make up for its shortcomings in the market for talent and retaining its employees, and its failures to integrate AI into its products," OpenAI's lawyers say. "More than 400 former Apple employees currently work at OpenAI, according to the initial complaint.

On Thursday, Bloomberg reported that the device would be circular like a donut, about the size of a hockey puck, and cost between $300 and $400, with a launch planned for 2027. "OpenAI has no use, need or desire for Apple's trade secrets," the creator of ChatGPT says in a court document, which continues that Apple hasn't named any specific products, such as an iPhone, that has allegedly been copied.

What to watch

OpenAI asked candidates to bring "prototypes" and design files to interviews for "show and tell" sessions, an American classroom exercise where students present objects to their classmates, Apple alleges. "The case comes at a sensitive time for OpenAI, which is worth a reported $852 billion as it works towards a potential IPO.

The lab is also locked into a fierce competition with Anthropic, a rival AI lab in San Francisco that was founded by a group of former OpenAI employees.