Apple takes legal action against OpenAI in escalating trade secrets case

Apple has asked a U.S. federal court to issue a preliminary injunction against OpenAI and two former Apple engineers, escalating a legal battle over proprietary hardware designs and artificial intelligence devices.

Apple filed a concurrent motion on Monday seeking expedited discovery, including production of documents relating to the defendants' alleged access of Apple's proprietary and trade secret information.

The iPhone maker Tech giant last month sued OpenAI and former employees working for OpenAI-alleging misappropriation of its trade secrets to benefit the ChatGPT.

The underlying lawsuit initially filed in July accuses OpenAI of poaching key talent including Liu, a former senior electrical engineer, and Tan, a former vice president of product design for the iPhone and Apple Watch) and leveraging stolen trade secrets to fast-track its own consumer hardware lineup, such as ambient AI devices and screen-free speakers

Apple also sought depositions from corporate representatives of OpenAI and io Products, which is OpenAI's commercial arm and is listed as a defendant in the lawsuit.

OpenAI said in a blogpost late on Monday, "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."

Apple's lawsuit, filed in the U.S. District Court for the Northern District of California, comes after OpenAI successfully fended off a legal challenge from Elon Musk's xAI.

Notably, the lawsuit sets up a battle over the control of future AI devices that may not use traditional apps or operating systems or devices which, if successful, would direct consumer attention away from Apple's best-selling iPhone.

However, analysts believe OpenAI is working on a phone or other device of its own.