[Into the World of AI] Apple and OpenAI's Mud-Slinging Lawsuit: There Was a Reason for the Brawl

OpenAI Publishes Original Communications in Response to Apple’s “Show and Tell” Allegations
Court’s Injunction Decision in the Spotlight
Prolonged Legal Battle Still Possible

Global big tech giants Apple and OpenAI are locked in a fierce mudslinging battle, airing each other's dirty laundry outside the courtroom. Both companies have released official blog posts, internal emails, and even unedited iMessage transcripts as part of their public fight. As a result, even in Silicon Valley, rather than taking sides, observers are expressing skepticism about each company's motives and moral high ground.

Last month, Apple filed a lawsuit in U.S. Federal Court in California against OpenAI and former Apple hardware engineers, seeking an injunction for trade secret misappropriation and damages. Subsequently, on the 4th of this month, Apple filed for a preliminary injunction to prevent OpenAI and former Apple executives—including Chang Liu and Tang Yu Tan, Chief Hardware Officer (CHO)—from accessing, using, or disclosing Apple confidential information.

Apple alleges that core personnel who moved to OpenAI as heads of its hardware division demanded a so-called "show and tell" in which they asked former colleagues to bring and display physical components of unreleased iPhones, including key circuit boards and batteries, during interview sessions. Apple also alleges that, just before resigning, these individuals intentionally downloaded dozens of confidential hardware schematics and leaked them.

After having remained silent, OpenAI recently shifted the narrative by releasing emails and transcripts via its official blog, directly refuting Apple's claims. OpenAI asserted that Apple's allegations are "an attempt to cover up its shortcomings in the AI talent market and its failure to integrate AI into its products." Furthermore, OpenAI argued, "We did not steal any secrets. Instead, Apple insiders themselves reached out to former engineers, asking them to resolve issues and inquiring about the locations of certain files." OpenAI added that, if there were leaks of confidential information, "the cause was not hacking by OpenAI, but Apple's own poor account privileges and system management concerning departing employees."

To further ridicule Apple, OpenAI also disclosed that, prior to the lawsuit, Apple's legal team had mistakenly sent a warning letter to the wrong person after confusing the surname of an Asian employee—a mishap that it made public. OpenAI has formally requested the court to dismiss the lawsuit.

Foreign media outlets have highlighted as the core background of this lawsuit OpenAI's USD 6.5 billion acquisition of 'io,' the AI hardware startup founded by former Apple's chief design officer Jony Ive, and their development of a "next-generation AI device to replace smartphones." Analysts argue that this is not merely a matter of rogue employees, but rather the onset of a full-scale big tech war as Apple moves to defend its core hardware market.

In its podcast "Equity," U.S. tech media outlet TechCrunch interpreted the lawsuit as part of Apple's strategy to seriously undermine OpenAI's plans to go public in the second half of the year and to enter the hardware market. Business Insider and others analyzed that OpenAI's decision to publicly release Apple attorney email mishaps and message screenshots was a thoroughly calculated "PR tactic" aimed at diverting attention from the substantive legal issue of trade secret misappropriation.

When Apple and OpenAI's all-out battle might end now largely depends on the court's ruling. In its motion to dismiss, OpenAI stated it is "creating something completely new—entirely different from any Apple product." In fact, according to Bloomberg and other outlets, sources say OpenAI is developing an AI device, targeted for launch next year, that takes the form of a screenless, hockey puck-sized donut-shaped speaker. If Bloomberg's report proves correct, this new product could serve as evidence that OpenAI did not copy Apple's designs.

If the court accepts OpenAI's motion to dismiss, Apple's lawsuit will be rendered null and void. On the other hand, if the court denies the request, both parties will enter full-scale "discovery." In this phase, each side is legally obligated to disclose internal emails, product schematics, transcripts, and more. This could potentially lead to destructive internal secrets being exposed as well as a protracted courtroom battle.

This content was produced with the assistance of AI translation services.