Apple Sues OpenAI Over Alleged Hardware Theft as New York Halts Data Centre Expansion

Apple has initiated legal proceedings against OpenAI, alleging the artificial intelligence firm misappropriated confidential hardware secrets, unreleased iPhone prototypes, and proprietary designs. The lawsuit, filed last Friday, centres on claims that former employees, including OpenAI’s chief hardware officer Tang Tan, facilitated the theft of intellectual property. Tan, who spent 24 years at Apple, is named in the complaint for allegedly encouraging departing staff to take proprietary information and unreleased technology with them.

The legal dispute highlights a significant talent migration, with Apple stating that OpenAI has hired more than 400 former employees. This follows OpenAI’s acquisition of IO Products last year for $6.5 billion, a startup co-founded by former Apple executives including Jony Ive. Industry observers suggest the litigation aims to slow OpenAI’s hardware ambitions, particularly as Apple continues to prioritise the iPhone as the primary computing platform for the AI era, despite emerging interest in audio-first devices.

In a parallel development within the AI sector, OpenAI staff have launched the Guardrails Alliance, a super PAC with $5 million in initial funding. The group aims to advocate for stricter regulations on frontier AI labs and counter the influence of the $100 million Leading the Future fund. The move underscores internal tensions at the company, with employees seeking to balance rapid technological growth against calls for safety guardrails and regulatory oversight.

Regulatory landscapes are also shifting, with New York Governor Kathy Hochul signing an executive order imposing the first statewide moratorium on large-scale data centres. The one-year pause affects facilities of 50 megawatts or more, pending the development of new environmental and energy grid standards. The decision, driven by concerns over utility costs and water usage, has drawn sharp criticism from Donald Trump, who argued the move jeopardises jobs and economic growth.

Separately, the United States is grappling with a record cyclosporiasis outbreak spanning more than 30 states. The CDC suspects nearly 7,000 cases nationwide, with Michigan accounting for over 3,700 infections. Health officials warn that the parasitic illness, often linked to contaminated leafy greens, causes severe gastrointestinal distress and dehydration. With standard cleaning methods like bleach ineffective against the parasite, authorities are urging consumers to thoroughly scrub raw vegetables.

In government transparency news, members of the Department of Government Efficiency (DOGE) at the Department of Housing and Urban Development (HUD) are reportedly obstructing Freedom of Information Act requests regarding their use of AI in policy decisions. HUD staff are citing a non-existent "AI exemption" to withhold details on how AI tools were used to identify regulations for potential rescission, raising concerns about accountability in automated policy-making.