Building physical gadgets is notoriously tough, but doing it with a former employer’s stolen playbook makes things a whole lot worse. Apple is closing in on a major courtroom victory against OpenAI after a federal judge indicated he will likely block the ChatGPT maker from using confidential hardware secrets allegedly brought over by former Apple engineers.
A major roadblock for OpenAI’s smart hardware push
During a federal court hearing in San Jose, California, U.S. District Judge Edward Davila revealed he is highly likely to grant Apple a preliminary injunction, Bloomberg reports. If issued, the court order would force OpenAI to immediately stop using proprietary trade secrets covering unreleased consumer devices, component designs, testing methodologies, and supply chain logistics.
Apple originally sued OpenAI alongside its hardware chief and a former iPhone engineer back in July. The firm claims the AI startup plotted to siphon off confidential trade secrets to fast-track its move into physical hardware.
OpenAI strongly denies the allegations, arguing that Apple is simply trying to intimidate workers who switch companies while casting ordinary job interviews as trade secret theft. However, Bloomberg confirmed that OpenAI is actively building a new family of AI-driven gadgets, including a doughnut-shaped smart speaker expected to cost over $300 that the company views as a novel AI device.
OpenAI fires back with its own espionage claims
The legal battle took a wild turn just hours before the hearing when OpenAI launched its own corporate spying allegations against the iPhone maker. In a fresh court filing, OpenAI claimed a former employee who defected back to Apple secretly transferred over one hundred confidential hardware files, unreleased device photos, engineering data, and product roadmaps directly to personal accounts before sharing them with senior Apple executives.
Apple quickly pushed back against those claims. The Cupertino giant stated that its strict internal security policies prevent the use of external corporate data, calling OpenAI’s filing an obvious attempt to distract from the mounting evidence. Meanwhile, Judge Davila ordered OpenAI to speed up turning over internal records regarding its alleged use of trade secrets as both tech giants prepare for their next major showdown in court.
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