Apple and OpenAI are escalating their legal fight over allegations that the ChatGPT maker used Apple employees to obtain closely guarded hardware secrets. Why it matters: If the case makes it to the discovery process, two of the most secretive companies in tech could be forced to reveal sensitive information about how they recruit talent, develop hardware and protect confidential information. Driving the news: On Monday, OpenAI responded to Apple's preliminary injunction request that asked a judge to block OpenAI from using any potential confidential information or trade secrets while the lawsuit remains in motion. - In its response, OpenAI said: "This dispute is a mess of Apple's own making, and it is trying to blame everyone else." -…
Apple is suing OpenAI for trade secret theft, alleging the AI giant deliberately and systematically solicited and stole confidential information from the iPhone-maker's current and former employees. Why it matters: Apple has lost significant talent to OpenAI as the frontier lab prepares to unveil its first hardware device this year. What they're saying: "Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes, and products," Apple said in a statement. Between the lines: The lawsuit alleges that Chang Liu, a former senior electrical engineer at Apple kept a work-issued Apple laptop and discovered a bug…
Apple isn't burning mountains of cash to buy GPUs for the sake of training AI models and processing prompts. - Nor is it investing huge sums in frontier labs like OpenAI or Anthropic, as are rivals like Amazon and Microsoft. Why it matters: Apple may reap the rewards of everyone else's spend. Success from the sidelines. Apple's playbook: Keep selling high-end consumer hardware that will become even more essential as AI becomes more ubiquitous. - AI advancements could lead to shorter upgrade cycles, while Apple's reputation for enhanced privacy could become an enhanced selling point. - All the while, "taxing" the frontier labs via the App Store. It doesn't matter to Apple which app gets used most, so long as it's being used. Behind the…