People Matters Logo

Why Apple is trying to block OpenAI's next AI product

• By Samriddhi Srivastava
Why Apple is trying to block OpenAI's next AI product

Apple has stepped up its trade secrets lawsuit against OpenAI, asking a US court to issue a preliminary injunction that would temporarily prevent the AI company from developing an AI device or other products allegedly based on Apple's proprietary technology.

In a new court filing, Apple also requested expedited discovery, saying its internal investigation has uncovered evidence suggesting the alleged misuse of confidential information may extend beyond the former employees named in its original complaint.

The filing marks a significant escalation in the dispute, with Apple widening the scope of its allegations while OpenAI has publicly rejected the claims, calling the request both unnecessary and factually incorrect.

Apple seeks to pause AI hardware development

The preliminary injunction sought by Apple is designed to stop OpenAI from moving ahead with AI hardware development until the legal dispute is resolved.

According to the filing, Apple is seeking expedited discovery from:

Apple said the additional discovery is necessary because it believes more individuals may have been involved in the alleged theft of trade secrets.

Investigation expands beyond the original complaint

Apple's latest filing claims its continuing investigation has identified 11 additional former Apple employees who may have either witnessed or been involved in the events under investigation.

The company also referred to individuals already named in the original lawsuit, including OpenAI employee Yu-Ting Peng.

According to Apple's court filing, newly uncovered evidence includes allegations that:

Apple said these developments support its request for expedited discovery because they suggest the alleged misconduct may involve more individuals than previously identified.

OpenAI rejects the allegations

OpenAI has publicly disputed Apple's claims.

In a blog post responding to the latest filing, the company said Apple's request for a preliminary injunction is "both based on false information and completely unnecessary because we do not have, nor want, any of their trade secrets."

OpenAI added that its focus remains on developing innovative technologies and products rather than using proprietary information belonging to competitors.

The company also challenged aspects of Apple's handling of the dispute.

According to OpenAI, Apple previously contacted the wrong individual after confusing two people with similar surnames when attempting to reach the company. 

OpenAI further alleged Apple misrepresented discussions with its general counsel and did not acknowledge claims that former employees retained "residual access" to Apple's systems because of weaknesses in the company's own security procedures.

Trade secrets dispute deepens

Apple's latest filing moves the case beyond allegations against a small group of former employees and towards a broader examination of how confidential information may have moved between companies during recruitment.

The request for expedited discovery indicates Apple is seeking access to documents, communications and evidence sooner than would normally occur during litigation, while the preliminary injunction seeks to prevent any allegedly tainted technology from progressing into commercial products before the court reaches a final decision.

Neither Apple's latest filing nor OpenAI's public response establishes whether trade secrets were misappropriated. Those claims remain contested and will ultimately be determined through the legal process.

A closely watched case in the AI industry

The dispute comes as competition for AI talent and hardware capabilities intensifies across the technology sector.

The outcome could influence how courts assess trade secret claims involving employee movement, AI hardware development and the handling of confidential information between competing technology companies.

For now, the case has entered a more consequential phase, with Apple seeking immediate judicial intervention while OpenAI continues to deny any misuse of Apple's intellectual property.