OpenAI CEO Sam Altman struck a note of admiration for Apple Inc. (NASDAQ:AAPL) on Saturday, calling it an “s-tier company” while saying he is not intimidated by the iPhone maker.
That praise lands as Apple is in court accusing OpenAI of lifting confidential know-how to speed up its consumer-hardware plans, a dispute outlined in a new lawsuit over alleged hardware secrets.
“i am not afraid of apple, but i have tremendous respect for them. s-tier company,” he said in a post on X.
Apple’s Lawsuit Marks A Turning Point
Apple filed suit Friday in federal court in Northern California, alleging OpenAI misused Apple’s trade secrets as it pushed deeper into consumer devices. Apple is seeking damages along with court orders that would block use of the information it says was taken and force OpenAI to stop related activity.
The complaint frames the fight as a departure from a 2024 partnership that put ChatGPT features into the iPhone’s software, but says the relationship cooled as OpenAI began pursuing hardware. One flashpoint cited in the dispute is OpenAI’s $6.4 billion acquisition of former Apple designer Jony Ive’s startup, IO Products.
Apple’s filing names OpenAI Chief Hardware Officer Tang Tan, a former Apple vice president, as a defendant and claims recruiting discussions were used to draw out confidential details from Apple employees interviewing for roles. Apple also alleges OpenAI encouraged departing Apple staff to bypass internal security procedures during their exits.
The suit also names Chang Liu, described as a former Apple employee who joined OpenAI, and alleges Liu took an Apple laptop. Apple further claims Tan asked candidates to bring physical Apple components into interviews for hands-on demonstrations intended to surface nonpublic information.
What Does This Mean For OpenAI’s Future?
OpenAI responded through a spokesperson, saying: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
OpenAI is also facing pressure in a Manhattan copyright dispute brought by publishers led by The New York Times, where the publishers are asking the court to sanction OpenAI. The sanctions push centers on claims that OpenAI withheld datasets and ChatGPT usage records that the publishers argue are necessary to test their allegations.
In that publisher fight, the sanctions request points to accusations that OpenAI said it could not locate copyrighted material inside its systems, while publishers cite testimony they say suggests searches were possible. Publishers also allege OpenAI compressed and deleted large volumes of conversation logs while the dispute was ongoing, while OpenAI has argued that producing conversation records could compromise user privacy.
Apple’s case adds a second legal front that similarly focuses on how information is handled, with allegations tied to interviews, laptops, and supplier interactions. Apple also claims OpenAI pressed outside hardware partners to use a metal-finishing process Apple says it developed, while implying Apple had signed off on the work.
Key Players In A Controversial Legal Battle
Bloomberg’s Mark Gurman reported that Apple says OpenAI has hired roughly 400 people from Apple, which Gurman described as “a gigantic number.” Gurman also reported Apple’s position that the lawsuit is separate from the companies’ ChatGPT work in Siri, while noting OpenAI has considered suing Apple over that arrangement.
Tech journalist Alex Heath said Apple executives were “ice-cold” when asked about the OpenAI relationship at WWDC and added “now we know why,” while noting he was still reviewing the complaint. Heath also said the filing contained “some cringe details,” and noted senior leaders from both companies were at the Sun Valley conference this week.
Apple’s product planning has also shifted, with its next Siri upgrade slated for the fall and built on Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google’s Gemini models instead of ChatGPT.
Photo courtesy: Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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