Apple’s War On OpenAI Just Got Personal
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Welcome to Prof G Markets. I'm Ed Elson. It is August 5th. Let's check in on yesterday's market vitals. The major indices climbed, with the Dow and the S&P 500 hitting record highs on hopes that the Strait of Hormuz would soon reopen. Brent crude oil dropped below $80 per barrel. The yield on 10-year treasuries declined. AMD shares dropped more than 8% despite posting record revenues. And finally, Palantir shares popped almost 30% a day after crushing earnings and raising its outlook. Okay, what else is happening? The legal war between OpenAI and Apple just heated up. Last month, Apple sued OpenAI, accusing the company of stealing trade secrets to build its own AI hardware device. At the time, Apple called the lawsuit, quote, just the tip of the iceberg.
Then, on Monday, Apple asked a federal judge to bar OpenAI and two ex-employees from accessing, using, or disclosing information it claims are trade secrets. Apple also asked the court to fast-track the case, arguing that there is a, quote, imminent threat to its trade secrets. OpenAI then fired back in a blog post, calling the lawsuit, quote, "'careless, aggressive, and oddly personal.'" The company also accused Apple's lawyers of mistakenly emailing the wrong person after confusing two people with similar Asian surnames. OpenAI maintains it has no interest in using another company's trade secrets and says the suit is, quote, based on false information. The hearing has been scheduled for October 1st.
Here to unpack this drama, we are speaking with Alex Heath, author of The Source's newsletter. Alex. It's good to see you. Let's just start with Apple's preliminary injunction, which was filed at the beginning of the week. Then we'll get to OpenAI's clapback, which was equal parts hilarious and important. What is Apple saying here? What are they accusing OpenAI of now?
Well, they're basically suggesting that there's more to the story than they've let on previously, that the corruption as they see it runs deeper. And I think most importantly, as you said in the intro, they're wanting a preliminary injunction. I mean, let's be real. Apple's trying to slow open AI down. That's what they're trying to do. They're trying to keep this launch that they have for their first device later this year from happening, derail the whole thing, freeze employees from continuing to work on things.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:01–12:22
2
What legal moves did Apple make against OpenAI and when did they escalate?
12:22–13:59
3
What does Apple’s preliminary injunction request allege about trade secret theft?
13:59–15:13
4
How did OpenAI respond publicly and why was the response described as 'personal'?
15:13–30:18
Speakers
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