OpenAI has asked a U.S. federal court to dismiss Apple’s trade-secret lawsuit, arguing that the iPhone maker has failed to identify legally protectable trade secrets or plausibly show that OpenAI misappropriated Apple’s confidential information. OpenAI’s motion comes after Apple accused the AI company, its hardware subsidiary io Products and two former Apple employees of improperly obtaining confidential information to accelerate OpenAI’s push into consumer hardware.
The dispute marks a significant escalation between two companies that were previously partners in integrating ChatGPT into Apple’s ecosystem. Apple filed the lawsuit in July, alleging a broader scheme involving former employees and recruiting practices. OpenAI has rejected the accusations and says it is building products that are fundamentally different from Apple’s offerings. Apple has since opposed OpenAI’s dismissal request and asked the court for a preliminary injunction and expedited discovery.
OpenAI Asks Court To Dismiss Apple’s Lawsuit
OpenAI filed its motion to dismiss in federal court in early August, arguing that Apple’s complaint does not satisfy the legal requirements for a trade-secret misappropriation claim.
The company says Apple has not adequately identified the specific information it claims qualifies as a trade secret, has not plausibly alleged that OpenAI or the individual defendants improperly acquired or used such information, and has not sufficiently established resulting harm.
OpenAI is seeking dismissal with prejudice, which would prevent Apple from simply bringing the same claims again in their current form.
OpenAI’s Legal Position
| Issue | OpenAI’s Argument |
|---|---|
| Trade secrets | Apple has not specifically identified legally protectable secrets |
| Misappropriation | Apple has not plausibly connected defendants to improper acquisition or use |
| Harm | Apple has not adequately demonstrated resulting injury |
| Evidence | Allegations rely on speculation, according to OpenAI |
| Former employees | Conduct has been given misleading context, OpenAI argues |
| OpenAI hardware | Company says it is building something fundamentally new |
| Requested outcome | Dismissal with prejudice |
OpenAI’s defense therefore focuses heavily on the legal sufficiency of Apple’s complaint rather than asking the court at this stage to conduct a full trial on the underlying factual dispute.
What Is Apple Accusing OpenAI Of?
Apple filed its lawsuit in July, alleging that OpenAI and former Apple employees engaged in a coordinated effort to obtain confidential information about Apple’s products and technology.
The complaint names OpenAI, io Products, hardware executive Tang Yew Tan and former Apple engineer Chang Liu.
Apple alleges that former employees took or retained confidential information and that OpenAI’s recruiting process was used to obtain proprietary information from current or departing Apple employees.
Apple’s complaint reportedly includes allegations involving confidential product specifications, engineering presentations, project information and details about unreleased technologies.
Apple’s Core Allegations
| Allegation | Apple’s Position |
|---|---|
| Confidential information | Former employees allegedly retained or accessed Apple information |
| Recruiting | OpenAI allegedly sought proprietary information during interviews |
| Hardware | Information allegedly related to Apple’s unreleased products |
| Security | Former employees allegedly bypassed or retained access |
| Chang Liu | Accused of accessing and downloading confidential files |
| Tang Yew Tan | Accused of using recruiting discussions to obtain information |
| OpenAI | Alleged to have benefited from the information |
| Broader issue | Apple says more former employees may be involved |
OpenAI disputes Apple’s characterization of these events and says the lawsuit improperly turns ordinary recruiting and offboarding issues into evidence of trade-secret theft.
OpenAI Says Apple Failed To Identify The Trade Secrets
A central part of OpenAI’s dismissal argument is that Apple must identify the specific information it considers a legally protected trade secret.
OpenAI argues that Apple cannot simply point to broad categories of confidential information and ask the court to infer what particular trade secrets were allegedly misappropriated.
The company says Apple must connect three elements:
- What specific information constitutes the trade secret.
- Why that information qualifies for legal protection.
- How a particular defendant improperly acquired, disclosed or used it.
OpenAI argues that Apple’s complaint does not adequately make those connections.
OpenAI’s Trade-Secret Argument
Apple's complaint
│
▼
Identify alleged confidential information
│
▼
OpenAI asks:
Is it specifically identified?
│
├── No → Not adequately pleaded
│
└── Yes
│
▼
Does it legally qualify as a trade secret?
│
▼
Was it improperly acquired, disclosed
or used by a defendant?
│
▼
Was Apple harmed?
The court must now determine whether Apple’s complaint contains enough factual allegations for the case to proceed into broader discovery.
OpenAI Challenges Apple’s Account Of Former Employees
OpenAI has also disputed Apple’s descriptions of the conduct of the two former employees named in the lawsuit.
One of the central figures is Tang Yew Tan, OpenAI’s chief hardware officer.
Tan spent about 24 years at Apple and was previously a senior design executive involved with products including the iPhone and Apple Watch. He later became involved with Jony Ive’s hardware startup io, which was acquired by OpenAI.
OpenAI says Tan followed ordinary industry recruiting practices and repeatedly instructed employees not to use confidential information belonging to other companies.
Tang Tan’s Role
| Particular | Details |
|---|---|
| Current role | OpenAI Chief Hardware Officer |
| Previous company | Apple |
| Apple tenure | About 24 years |
| Previous Apple work | iPhone and Apple Watch design |
| OpenAI connection | Hardware strategy |
| Apple’s allegation | Improper acquisition of confidential information |
| OpenAI response | Denies wrongdoing |
Because Tan was a senior Apple design executive, his move to OpenAI has become a major point of contention in the lawsuit.
Chang Liu Case Centers On Access To Apple Files
Apple also accuses former engineer Chang Liu of accessing confidential Apple information after leaving the company.
Apple alleges that Liu retained an Apple-issued laptop and used it to download confidential technical documents after joining OpenAI.
OpenAI has offered a different account, arguing that Liu was attempting to help a former Apple colleague locate information for legitimate work rather than stealing Apple’s secrets.
OpenAI has also questioned Apple’s own system-access practices and the circumstances under which former employees could retain access to company information.
Chang Liu Dispute
Apple's version
│
▼
Liu retained access to Apple systems
│
▼
Confidential files allegedly downloaded
│
▼
Information allegedly connected to
unreleased Apple products
│
▼
Apple alleges trade-secret theft
OpenAI's version
│
▼
Liu was assisting a former colleague
│
▼
Access resulted from Apple's own
offboarding/security practices
│
▼
No intentional misappropriation
The competing accounts illustrate why discovery could become important if the judge allows Apple’s lawsuit to proceed.
OpenAI Points To Apple’s Security Practices
One of the more unusual aspects of OpenAI’s response is its criticism of Apple’s own data-security and employee-offboarding practices.
OpenAI argues that Apple encouraged employees to use personal iCloud accounts for some work and that company information could therefore become mixed with personal data.
The company also argues that Apple later reviewed personal messages stored on corporate devices and that former employees may have retained residual access without realizing it.
OpenAI’s position is that Apple should not be able to characterize the consequences of its own systems as evidence of deliberate theft.
Apple rejects that characterization and says its complaint identifies specific acts of alleged misappropriation.
Apple Wants A Preliminary Injunction
While OpenAI is seeking dismissal, Apple has asked the court to impose a preliminary injunction.
Apple wants OpenAI and the other defendants prevented from accessing, using or disclosing the alleged trade secrets while the case continues.
Apple has also requested expedited discovery to investigate the extent of the alleged information transfers.
Apple’s Requested Court Actions
| Request | Purpose |
|---|---|
| Preliminary injunction | Prevent use or disclosure of alleged trade secrets |
| Expedited discovery | Quickly investigate evidence |
| Evidence preservation | Protect relevant records |
| Return of confidential materials | Recover Apple’s information |
| Restrictions on use | Prevent further exploitation |
Apple argues that waiting for normal discovery could increase the risk that confidential information is used or disseminated.
OpenAI has called the injunction request unnecessary and based on what it describes as false information.
Apple Says More Former Employees May Be Involved
The dispute has expanded beyond the two former Apple employees initially named in the case.
Apple said its internal investigation identified additional former employees who may have witnessed or participated in conduct relevant to its allegations.
The company has reportedly identified 11 additional former employees in connection with its investigation.
Apple has also alleged that some former employees retained Apple-issued devices after moving to OpenAI and later contacted Apple about returning them.
The additional allegations could become significant if the court allows expedited discovery.
More Than 400 Former Apple Employees Are At OpenAI
The lawsuit has an unusually large talent-mobility dimension.
Apple says more than 400 former Apple employees now work at OpenAI.
That number does not mean Apple alleges that all of those individuals were involved in wrongdoing. Instead, it illustrates the scale of employee movement between the two technology companies.
Apple Alumni At OpenAI
| Indicator | Reported Figure |
|---|---|
| Former Apple employees at OpenAI | 400+ |
| Employees specifically named in lawsuit | 2 initially |
| Additional employees identified by Apple | 11 |
| Core dispute | Alleged trade-secret misappropriation |
| Broader issue | Competition for AI and hardware talent |
The large flow of talent is important because OpenAI is increasingly competing with Apple in areas traditionally dominated by the iPhone maker.
The Lawsuit Is Linked To OpenAI’s Hardware Push
The legal battle comes as OpenAI expands beyond software and AI models.
OpenAI acquired Jony Ive’s io Products in a deal valued at approximately $6.5 billion in 2025, giving the company a major hardware-design capability.
The company is working toward consumer hardware products that could eventually compete more directly with Apple’s devices.
This makes Apple’s trade-secret concerns particularly sensitive.
If OpenAI were found to have used proprietary Apple information to develop competing hardware, the consequences could extend beyond monetary damages.
Apple And OpenAI Were Previously Partners
The current litigation is especially notable because Apple and OpenAI were not always direct adversaries.
The companies previously partnered to integrate ChatGPT into Apple’s ecosystem, including Apple’s Siri-related AI capabilities.
That relationship deteriorated as OpenAI expanded its ambitions and moved deeper into consumer hardware.
The lawsuit therefore reflects a broader shift from cooperation to competition.
Apple-OpenAI Relationship
Earlier relationship
│
▼
ChatGPT integration
with Apple's ecosystem
│
▼
OpenAI expands AI ambitions
│
▼
OpenAI enters consumer hardware
│
▼
Former Apple talent joins OpenAI
│
▼
Apple raises trade-secret concerns
│
▼
July 2026 lawsuit
│
▼
OpenAI seeks dismissal
The legal dispute is consequently part of a much larger strategic realignment between the companies.
Court Hearing Scheduled For October 1
The case is now moving into a critical procedural phase.
Apple has opposed OpenAI’s request for dismissal, arguing that the company’s defenses depend on factual disputes that should be examined through discovery rather than resolved at the pleading stage.
A hearing is scheduled for October 1.
The court will have to consider whether Apple’s complaint contains sufficient allegations to survive dismissal and whether Apple’s request for emergency restrictions on OpenAI should be granted.
What Happens If The Judge Allows The Case To Continue?
If the court rejects OpenAI’s dismissal motion, the case could move into extensive discovery.
That process could require both companies to disclose documents, communications, recruiting records, employee-device information and other evidence.
For Apple, discovery could help establish whether proprietary information was actually accessed or transferred.
For OpenAI, discovery could provide an opportunity to demonstrate that the alleged information was not used and that Apple’s claims were based on ordinary employee movement and flawed security controls.
Possible Legal Paths
| Court Outcome | Potential Next Step |
|---|---|
| Case dismissed | Apple could potentially appeal |
| Partial dismissal | Remaining claims proceed |
| Motion denied | Discovery expands |
| Preliminary injunction granted | OpenAI faces restrictions |
| Injunction denied | Case continues without emergency restrictions |
| Settlement | Litigation ends before trial |
| Case reaches trial | Evidence and liability decided later |
The current stage does not determine whether either company’s underlying factual claims will ultimately prevail.
The Bigger Picture
The OpenAI-Apple lawsuit is becoming a major test of how trade-secret law applies when senior employees move between two technology companies competing for the future of consumer hardware. Apple says former employees improperly accessed or shared confidential information and that OpenAI benefited from those actions. OpenAI counters that Apple has not identified specific protectable trade secrets or plausibly alleged that any defendant improperly acquired or used them.
The stakes extend beyond the immediate lawsuit. OpenAI is building a hardware business with former Apple design talent and the backing of Jony Ive’s former startup, while Apple remains one of the world’s largest consumer-device companies. With more than 400 former Apple employees reportedly now at OpenAI, the case could influence how aggressively technology companies recruit competitors’ employees and how companies manage confidential information when workers move between rivals.
Looking Ahead
The immediate focus will be the October 1 hearing, when the court is expected to consider OpenAI’s dismissal request and related issues in Apple’s trade-secret case. Apple is arguing that OpenAI’s defenses raise factual questions that should be resolved through discovery, while OpenAI maintains that the complaint is legally deficient and asks for dismissal with prejudice.
If the lawsuit survives, discovery could expose detailed information about recruiting practices, employee communications, Apple security procedures and OpenAI’s developing hardware strategy. The case could therefore become a much broader examination of competition for AI-hardware talent and proprietary technology. For now, neither side has established its allegations in court, and the judge’s ruling on OpenAI’s motion will determine whether the dispute advances toward a more extensive legal battle.
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