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Apple takes OpenAI to court
Apple is suing OpenAI, accusing the major AI firm and industry partner of attempting to access and steal confidential information about their tools, processes and unreleased products through job interviews with their employees.
© AP
The lawsuit, filed Friday in a California federal court, accuses OpenAI and two former employees of stealing Apple’s confidential information and handing it over to the ChatGPT maker when they joined the company.
The former employees include Tang Yew Tan, a 24-year veteran of Apple who served as vice president of product design for the iPhone and Apple Watch before joining OpenAI as its chief hardware officer, and Chang Liu, who is now at OpenAI after spending eight years as a senior system electrical engineer at Apple.
OpenAI “has been instructing” Apple employees to bring proprietary information like design prototypes, tools, or communications with vendors to interviews to “divulge” details about their work, attorneys for Apple wrote Friday.
“Apple does not bring this action lightly. Apple operates in the most competitive markets in the world and focuses on creating and shipping the very best products and services that embody its innovations,” Apple’s legal team said in the filing.
“But it cannot tolerate the theft of its trade secrets. In light of the troubling evidence it has seen so far, Apple is left with no choice.”
As a result of the alleged theft, Apple’s attorneys argue OpenAI’s hardware business “now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”
An OpenAI spokesperson said in a statement that it has “no interest in other companies’ trade secrets,” adding, “We remain focused on building innovative technology that empowers people everywhere.”
The suit comes amid growing tensions between the two technology giants, which first partnered in 2024 to integrate ChatGPT into Apple’s devices.
Reports emerged in May that their partnership has strained and OpenAI was considering legal action over failing to get the expected benefits from the deal.
Read more in a full report at TheHill.com.
Welcome to The Hill’s Technology newsletter, we’re Julia Shapero and Miranda Nazzaro — tracking the latest moves from Capitol Hill to Silicon Valley.
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Essential Reads
How policy will be impacting the tech sector now and in the future:
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Top Democrats bash Trump over cryptocurrency income
Top Senate Democrats slammed President Trump on Friday over the more than $1 billion in cryptocurrency-related income he reported last year, calling for investigations into the national security ramifications of the president’s digital asset holdings. The administration released Trump’s financial disclosures last week, showing he made about $594 million from World Liberty Financial, the crypto venture he launched with his sons …
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The Refresh
News we’ve flagged from the intersection of tech and other topics:
- SK Hynix raises $26.5 billion in the biggest foreign IPO in U.S. history (TechCrunch)
- EU tells Instagram, Facebook to change addictive features or face fines (Reuters)
Crypto Corner
CBDC ban poised to become law
© Alex Brandon, Associated Press
A measure banning the creation of a central bank digital currency (CBDC) is poised to become law at midnight Friday.
The provision, which blocks the Federal Reserve from issuing a CBDC through the end of 2030, passed Congress in late June as part of a bipartisan housing package.
The three-year CBDC ban was briefly thrown into limbo, when President Trump announced he would not sign the 21st Century ROAD to Housing Act until the Senate passes his voter ID legislation.
The housing bill will automatically become law if Trump does not veto it before midnight.
Trump said earlier Friday he wouldn’t sign the measure in protest. But Speaker Mike Johnson (R-La.) has suggested the president will not block it from becoming law.
Crypto Corner is a daily feature focused on digital currency and its outlook in Washington.
You’re all caught up. See you next week!
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