Apple has sued OpenAI and 2 former employees, alleging that confidential hardware information was taken and used to speed up OpenAI’s move into consumer devices. OpenAI denies seeking or using competitors’ trade secrets.

OpenAI wants to develop AI-first hardware that could reduce dependence on smartphones and traditional apps. Apple needs to protect the engineering knowledge behind the iPhone ecosystem.

The case could delay OpenAI’s hardware plans, damage its relationship with Apple and push technology companies to tighten controls around confidential data.

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Alternative AI platforms

A breakdown in the Apple and OpenAI relationship could create more room for competing AI platforms. $GOOGL (Alphabet) could push Gemini further into consumer devices or become an alternative AI partner for Apple. $META (Meta ...