Apple pushes back on OpenAI bid to toss trade secrets suit

Apple on Wednesday formally rejected OpenAI's attempt to throw out a lawsuit that accuses the ChatGPT-maker and two former Apple employees of stealing trade secrets. In a filing reported by AppleInsider, Apple said the motion to dismiss relied on distortion, speculation, and improper extrinsic evidence rather than a fair reading of the complaint.

The lawsuit, filed in July, alleges that OpenAI systematically obtained confidential Apple information through former engineers Chang Liu and Tang Yew Tan to accelerate its own push into consumer hardware. Liu was a senior system electrical engineer at Apple. Tan served as vice president of product design for iPhone and Apple Watch. The case marks a sharp escalation in the already tense relationship between the two tech giants.

OpenAI moved earlier this month to dismiss the case. The company argued that Apple failed to demonstrate it owned a protectable trade secret, that the complaint did not allege conduct plausibly supporting a misappropriation claim, and that Apple showed no ongoing harm.

"OpenAI has no use, need or desire for Apple's trade secrets," lawyers for OpenAI wrote. "OpenAI is building something entirely new and different from anything at Apple." They added that the company has an interest in hiring the best engineers, many of whom chose to leave Apple for OpenAI's innovative work.

Apple pushed back hard. The company argued that its original complaint "sufficiently identifies specific trade secrets that defendants misappropriated," citing previous cases where courts found similar levels of detail sufficient to let trade secret claims move forward. Per 9to5mac reports, Apple also rejected OpenAI's suggestion that it had not done enough to protect its secrets, calling the argument "not credible." Apple said OpenAI "trivialize[s] Apple's trade secrets as mere 'supplier relationships' and then question[s] whether all 'supplier relationships' are confidential."

The central flashpoint is a heavily redacted conversation transcript that OpenAI posted on its website. The transcript shows a chat between Liu and a former Apple colleague still employed at the company. OpenAI argued that Liu's post-departure conduct amounted to consulting for a former colleague, not unauthorized information access. Apple painted a different picture.

"What the complaint actually alleges is that Liu, after his departure, exploited an authentication vulnerability to 'access Apple's network storage'–a cloud-based file repository containing Apple's confidential materials," Apple said in its filing. "Upon discovering the vulnerability, he celebrated ('LOL... this is so funny'), then spent weeks downloading dozens of confidential files while developing hardware for OpenAI."

Apple also argued that OpenAI is misusing the motion-to-dismiss mechanism itself. The case is in its early procedural stages with no trial date set. A judge will now weigh whether Apple's claims are specific enough to proceed to discovery, where both sides would exchange evidence including internal communications and hiring records.

The outcome matters beyond these two companies. Trade secret disputes between tech giants have become more common as AI talent and hardware ambitions collide. A ruling against Apple could make it harder for any company to pursue similar claims. A ruling against OpenAI could expose the company to discovery that reveals how it sources technical talent and information from competitors.

Both employees remain named defendants. Liu worked on hardware engineering at Apple. Tan oversaw design for Apple's most important product lines. Their departures and subsequent work at OpenAI sit at the center of Apple's claim that the startup systematically poached talent carrying confidential knowledge.

Apple's response cited a specific timeline: Liu allegedly exploited the vulnerability after leaving Apple, spent weeks downloading files, and celebrated the access in messages. The company described this as theft, not consulting.