OpenAI points to Apple policies in trade secret dispute

# OpenAI Pushes Back Against Apple’s Trade Secret Lawsuit, Blames Internal Policies

OpenAI has rejected Apple’s allegations of trade secret theft, arguing in federal court that the iPhone maker’s own workplace policies and departure procedures contributed to any continued access to confidential information by former employees.

In a filing submitted in the U.S. District Court in San Jose, OpenAI urged the court to dismiss Apple’s lawsuit, saying the company had failed to provide sufficient evidence that its proprietary information was actually stolen.

OpenAI characterized the dispute as the result of Apple’s own internal practices rather than misconduct by the AI company or its employees.

Apple filed the lawsuit in July against OpenAI and former Apple employees Tang Tan and Chang Liu.

The complaint alleges that proprietary information involving hardware development, manufacturing techniques and supply-chain operations was improperly taken as the former employees moved to OpenAI.

The legal battle comes as OpenAI accelerates efforts to build consumer hardware, increasing the importance of employees with experience in Apple’s hardware operations.

OpenAI said it has recruited roughly 400 former Apple employees for its hardware division, highlighting the scale of the talent movement between the two companies.

A central part of OpenAI’s defense focuses on Apple’s handling of employee data.

The AI company argued that Apple encourages workers to use personal iCloud accounts for certain day-to-day work activities, potentially making it difficult to distinguish personal information from corporate records when employees leave.

OpenAI also challenged Apple’s employee departure procedures.

According to the filing, Apple’s practice of immediately escorting departing employees from company facilities can leave limited time for them to return equipment, transfer responsibilities and properly handle data.

Former employee Chang Liu said in the filing that any access to Apple materials after his departure occurred when former colleagues reached out to him for assistance with projects he had previously worked on.

Tang Tan, who spent 24 years at Apple, said he returned company prototypes before leaving and retained only materials he considered non-confidential, including a routine departure checklist.

OpenAI further argued that California law allows employees to move between competing companies, suggesting Apple’s lawsuit could discourage workers from joining rivals.

The company characterized the litigation as an attempt to slow competition as OpenAI expands beyond artificial intelligence software and into consumer hardware.

Apple, meanwhile, has sought expedited discovery as part of the case.

The company alleges that forensic examinations of devices used by former engineers uncovered unauthorized downloads of technical schematics and other potentially sensitive material.

Those allegations remain contested, and the court has not yet resolved the competing claims.

The dispute is particularly notable because Apple and OpenAI were once closely aligned.

The two companies announced a partnership roughly two years ago that brought ChatGPT capabilities into Apple’s software ecosystem.

Since then, OpenAI’s growing ambitions in hardware have introduced a new competitive dimension to the relationship.

OpenAI’s recruitment of experienced Apple engineers has intensified concerns surrounding intellectual property and confidential business information.

The case could ultimately test how technology companies protect trade secrets when employees move directly to competitors in rapidly evolving industries.

For now, both sides remain locked in a federal court battle in California, with OpenAI insisting that Apple’s internal procedures are partly responsible for the circumstances at the center of the dispute.