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Can an Apple lawsuit derail OpenAI’s hardware plans?

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Apple recently filed a trade secrets lawsuit against OpenAI, accusing the AI company of a pattern of misconduct aimed at getting current and former Apple employees to share confidential information. (In response, OpenAI said it is “not aware of any evidence that this complaint has merit.”)

On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I debated whether this lawsuit will cast a shadow over OpenAI’s much-discussed plans to get into the hardware business (starting with a mobile smart speaker) and go public.

“Even setting aside whether or not the court grants any kind of injunctive relief or any kind of restraining order over what OpenAI is doing, it just naturally can lead to that sort of situation where it’s going to cause some delays in what OpenAI is working on,” Sean suggested. “Which I’m sure was probably part of the reasoning behind Apple doing this. They don’t do this stuff willy nilly.”

With all those plans on the line, will OpenAI try to settle this as quickly as possible, or did it learn from its recent courtroom victory against Elon Musk that it can endure the cost and embarrassment of a trial? Kirsten, at least, predicts the latter.

Keep reading for a preview of our conversation, edited for length and clarity.

Kirsten Korosec: Sean, how do you feel about Sam Altman listening to you with a little device maybe in your pocket?

Sean O’Kane: I’m good. Maybe that’s predictable, but I’m good. No thanks.

We’ll get into it, I’m sure, but this is allegedly the first product that OpenAI has been working on in its hardware division with Jony Ive and company. They’ve been really coy ever since that weird video they put out last year of them sitting at that coffee shop or bar in San Francisco and sort of talking very vaguely about hardware and legacy devices, meaning laptops and phones. And so if this is the direction they’re headed in, all power to people who want to have somebody like that always listening to them. This is not going to be for me.

Anthony Ha: Part of what we have to remember about those kinds of devices is also that, depending on how mobile it is, it’s not just listening to you, it’s listening to the people around you. I might be fine with it — I’m not fine with it, but let’s say I was — but then if we met up in-person at Disrupt, then suddenly it might be listening to all of us. 

There’s all kinds of social norms that are going to have to be renegotiated if these things become widespread. I think we should make fun of and criticize people who record other people without consent.

Kirsten: Well, I bring up the device that has been speculated about for a really long time, and we’ll see what it really ends up being once it’s officially introduced, but it’s important in the context of this lawsuit that Apple filed last Friday. 

It was the biggest news of the week, certainly, and this is a trade secret lawsuit. It has some pretty wild allegations and we should very much emphasize these are allegations that have been filed in a complaint by Apple. But what it is accusing OpenAI of is a pattern of misconduct at the highest levels, specifically directed towards OpenAI employees who used to work at Apple. And in fact they’ve named the chief hardware officer Tang Tan in this lawsuit.

This is all important because Apple is accusing OpenAI of essentially stealing their trade secrets, but in the context of that, this could be then used for a competing hardware product. I’m wondering if maybe we don’t get into whether this lawsuit has merits, because we haven’t gone through full discovery, but what are your initial impressions of the lawsuit aside from the fact that wow, this is going to be entertaining?

Sean: Two things. One, this is a pretty big risk potentially to whatever it is OpenAI is working on. Even setting aside whether or not the court grants any kind of injunctive relief or any kind of restraining order over what OpenAI is doing, it just naturally can lead to that sort of situation where it’s going to cause some delays in what OpenAI is working on, which I’m sure was probably part of the reasoning behind Apple doing this. They don’t do this stuff willy nilly.

The other is that we think that OpenAI is — we know that they’ve filed confidentially for an IPO. We think it might happen as early as the end of this year, or early next year, if you believe Sam Altman’s cautious language around the IPO. And this just raises a whole bunch of questions around that because, on the one hand, we think their business right now is probably overwhelmingly the software; they’re not really factoring in any hardware business into that picture at the moment.

They’re about to go to the markets and they’re going to be pitching bankers and investors on where they think their addressable market should be, and if they have a big amount of that pegged to a potential hardware division and hardware products, this could be a huge risk to that and changes a lot of the calculus of sort of how the IPO gets priced. So that’s where my head’s at.

Anthony: One [allegation] that I assume that Apple must have pretty solid like numbers on is, they said more than 400 Apple employees now work at OpenAI. Granted, both of them are very large companies with many thousands or tens of thousands of employees. So as a percentage, it’s not necessarily huge. But that seems like a lot of people and a pretty serious talent drain. 

And the other thing I’m wondering is related to Sean’s point. With the context of the potential IPO, how much damage did OpenAI ultimately take from a marketing and brand perspective from the trial it already went through? That it seemed to basically win, but there was a lot of not-terrible-but-kind-of-embarrassing dirty laundry that came out in the testimony. To what extent are they just like, “We do not want to go through that again”? Or did they take the lesson of, “Hey, we went through it and we survived and we’ll be okay if we have to do another trial with Apple”?

Kirsten: I fully predict the latter, by the way.

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Osun Poll: Adeleke, APC clash over police interference, voting disruption plot allegations

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Osun State Governor Ademola Adeleke, and the All Progressives Congress, APC, have exchanged accusations over alleged police interference, political protests and plans to disrupt voting ahead of Saturday’s governorship election.

The latest dispute followed separate statements issued on Monday by the Imole Campaign Council, TICC, which is backing Adeleke’s re-election bid, and the Osun APC Governorship Campaign Council.

Both sides accused the other of attempting to manipulate security and electoral institutions ahead of the August 15 poll.

TICC in separate statements by Bamidele Salam, Chairman, Media and Publicity Committee and Pelumi Olajengbesi, spokesperson, rejected the APC’s allegation that Adeleke was planning to blackmail the Nigeria Police Force through a protest by hired women, describing the claim as unfounded.

The campaign council alleged that the APC had used the police to intimidate and harass political opponents during the election period. It further claimed that at least six of its members had been killed and several others injured during political violence.

“It is nothing but mischief for the APC that has unleashed unimaginable violence on Osun people, killing no fewer than six of our members, to turn around to blame the victim,” TICC said.

The council also alleged that more than 60 Accord Party members had been arrested by the police without justification, while accusing the security agency of treating APC members involved in alleged violence differently.

TICC claimed that “some Accord members had been arrested from their homes and alleged that security personnel had escorted suspected political thugs.”

It cited a viral video which it said appeared to show a police operative handing a firearm to a political thug in Ilesa.

The campaign council called on Inspector-General of Police, Tunji Disu, to intervene and ensure what it described as fair and neutral policing before the election.

“We totally reject the overt attempt by the Police to influence the August 15 governorship poll through coercion and unlawful arrests of Accord leaders and members,” the council said.

Separately, TICC alleged that the APC was pressuring the Independent National Electoral Commission, INEC, to end voting by 12pm in selected local government areas during Saturday’s election.

According to the campaign council, the alleged plan targeted areas considered political strongholds of Adeleke, with the aim of suppressing votes and disenfranchising eligible voters.

“We therefore call on INEC to resist every form of political pressure and strictly adhere to its established voting procedures and timelines,” TICC spokesman Pelumi Olajengbesi said.

The council urged INEC to ensure that no polling unit was arbitrarily closed while eligible voters who arrived within the stipulated voting period were waiting to vote. It also called on election observers, civil society organisations, international bodies and the media to monitor the process.

The APC, however, dismissed the allegations against it and accused Adeleke and the Accord Party of attempting to blackmail the police through a planned protest involving vulnerable women.

The APC campaign council in a statement by Engr Oluremi Omowaiye
Head, Media and Publicity Committee, alleged that some women had been recruited to protest at the Osun State Police Command headquarters in Osogbo, claiming some had been instructed to protest half-naked.

“Intelligence available to us reveals a preplanned, highly provocative plot to hire vulnerable women—some of whom have been instructed to protest half-naked—and march them to the State Police Command Headquarters in Osogbo,” the APC said.

The APC maintained that the police were investigating individuals suspected of involvement in electoral violence and urged security agencies to remain professional ahead of the election.

It also called on its supporters to remain calm and law-abiding as Osun voters prepare to cast their ballots on August 15.

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Onuachu Tipped To Take Up Sponsorship Of Coach Osahon Emokpae Memorial Football Carnival

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Trabzonspor of Turkey striker, Paul Ebere Onuachu is being tipped to take over full sponsorship of a one-day memorial football competition to be staged in honour of his first grassroots coach, Osahon Emokpae.

Sports247 gathered that the competition, which is scheduled to hold this Thursday at FHA Stadium in FESTAC Town, Lagos, is the brainchild of Nigerian Grassroots Football Federation (NGFF), of whose junior team Coach Osahon was the pioneer handler.

Read Also: Paul Onuachu Donates More Than 50 Football Boots, Plus Various Kits To Young Stars FC Of Lagos | Sports247 Nigeria

NGFF president, Pastor Oscar Ezinwa Emmanuel disclosed that the single day competition will be staged like a memorial carnival involving 12 teams, all of which were influenced one way or the other by Coach Osahon, who was until recently the caretaker committee chairman of Badagry Division Football Association (BDFA).

Pastor Oscar, who is also fondly called ‘TM,’ further disclosed that the competition, which will be staged on a knock-out basis, with games lasting only 20 minutes each, without any half time, will be graced by many esteemed personalities of football across Lagos State, Nigeria and abroad.

The competing teams will be led by Young Stars FC of Satellite Town, which Onuachu played for as a teenager, and from where Osahon took him along to FC Ebedie of Sagamu, when he became head coach of the club owned by Barrister Churchill Oliseh.

Other teams to feature in Thursday’s Osahon Emokpae Memorial Football Carnival include Young Eleven FC, CATS Boys FC, NGFF All Stars Selected, Vido 99 FC, ECAS FC and Golden Intercontinental FC.

Also listed to feature in the competition, which will run from 8am to 4pm at the popular terrain owned by Federal Housing Authority are Flying Sports Academy, SC Heritage, Santana Boys FC, Festiko FC and Awori United.

The NGFF scribe told Sports247 that the organising committee decided to woo Onuachu as the competition’s sponsor based on the fact that he is the late coach’s biggest product and he contributed immensely in efforts to stabilise the grassroots football zealot when the illness that claimed his life started.

“We know that Paul Onuachu really spent a lot on Coach Osahon’s medical bills, and we thank him so much for his efforts. It’s a good example he gave for other players to always remember the coaches that brought them up.

“In the same vein, we are solemly appealing to him to kindly take up the bill for this carnival that we want to stage in honour of Coach Osahon, a man who gave all his life to promoting youth football.

“We have a budget of just one million naira to cover things like refreshments, snacks, water, organisational needs, logistics, fees for referees, awards and other necessities.

“I personally appeal to Onuachu to take up this responsibility and, by the special grace of God, he will be blessed more abundantly in return. Good health will continue to follow him and he will soar higher.

“I know him as a caring boy, who has even given donations to his community in Imo State, for which God will also reward him exceedingly. Injury will mot befall him and he will have a sound mind on the field all the time. Amen,” Pastor Oscar prayed.

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