Apple bites OpenAI with lawsuit

Apple has accused OpenAI of stealing trade secrets as it seeks to build its own hardware for ChatGPT, a major rupture in a partnership between the iPhone maker and the artificial intelligence company.

Apple filed a lawsuit against OpenAI on Friday in a California court, accusing the company of stealing trade secrets related to its efforts to build custom hardware for ChatGPT. The lawsuit alleges that OpenAI hired former Apple employees who had access to sensitive information, which was then used to develop OpenAI's own hardware. Apple is seeking damages and an injunction to prevent OpenAI from using the allegedly stolen trade secrets. The lawsuit also names several former Apple employees who now work at OpenAI.

The lawsuit could impact the price of ChatGPT services, as Apple's custom hardware was expected to reduce the cost of running the AI model. If OpenAI is forced to develop its own hardware from scratch, the cost of ChatGPT services may increase, which could be passed on to consumers. This could affect businesses that rely on ChatGPT for customer service or content generation. The increased cost could also make ChatGPT less competitive with other AI models.

The lawsuit is the latest development in a long-standing partnership between Apple and OpenAI, which began in 2021. The two companies had been working together to develop custom hardware for ChatGPT, with Apple providing its expertise in chip design and manufacturing. However, the partnership began to fray earlier this year, when OpenAI announced plans to develop its own hardware. Insiders say that Apple had been growing increasingly concerned about OpenAI's intentions and had been trying to renegotiate the terms of their partnership.

The court is expected to schedule a hearing on the lawsuit in the coming weeks, with a decision possible by the end of the summer. Apple's lawyers will likely seek to depose the former Apple employees who now work at OpenAI, in an effort to prove that they stole trade secrets. Interestingly, OpenAI's CEO, Sam Altman, has a history of clashing with Apple, having previously worked at a company that developed a rival to Apple's Siri virtual assistant.