Markets & Mayhem@Mayhem4Markets
Apple just sued OpenAI. The same OpenAI it partnered with 18 months ago to put ChatGPT in your iPhone.
> 2024: Apple and OpenAI announce a partnership. ChatGPT gets built into iOS. Sam Altman visits Apple Park.
> 2025: OpenAI buys Jony Ive's hardware startup for $6.4 billion. OpenAI is building a device. Apple notices.
> 2026: Apple files a federal lawsuit alleging OpenAI stole its trade secrets to build that hardware.
The complaint is detailed. OpenAI's hardware chief Tang Tan, a former Apple VP, allegedly asked Apple employees interviewing at OpenAI to bring "actual parts" from Apple to show-and-tell sessions.
A former employee named Chang Liu allegedly stole an Apple laptop when he left for OpenAI. The suit claims OpenAI misled hardware partners into believing they had Apple's permission to use a proprietary metal finishing process Apple invented.
"At every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets."
"We have no interest in other companies' trade secrets."
These two statements cannot both be true.
OpenAI is gearing up for what is expected to be a historic IPO. It just won a high profile trial against Elon Musk two months ago. Now it faces a second major legal front from the most valuable company in the world, in Apple's home court of Northern California.
Apple already moved its Siri assistant to Google Gemini. The partnership is functionally dead.
OpenAI finished its first hardware prototypes last November. It has not announced what it is building or when. The lawsuit might force it to show its hand.
Did OpenAI cross the line from hiring talent to stealing from the company that trusted it as a partner?
And if a jury says yes, what happens to the biggest AI IPO the market has ever seen? 🤔
$AAPL