Industry

OpenAI asks judge to throw out Apple's 'meritless' trade secrets lawsuit

OpenAI has filed a motion to dismiss Apple's trade secrets lawsuit, calling the allegations 'meritless' and 'rotten to its core.' The dispute began in July when Apple accused former employees who joined OpenAI of taking proprietary documents. OpenAI argues the lawsuit is about competition for talent and Apple's AI struggles, with a hearing set for October 1st.

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August 6, 20265 min read
OpenAI asks judge to throw out Apple's 'meritless' trade secrets lawsuit

OpenAI has filed a motion to dismiss Apple's trade secrets lawsuit, calling the allegations "meritless" and "rotten to its core." The filing, submitted yesterday, marks the latest escalation in a legal fight that began in July when Apple accused the ChatGPT maker of stealing confidential documents to advance its own hardware plans.

Apple's lawsuit, filed in July, alleges that former Apple employees who moved to OpenAI took proprietary files with them. The company claims those documents were used to support OpenAI's hardware development efforts. Apple has described the case as a landmark dispute over employee mobility and intellectual property in the fiercely competitive AI sector.

OpenAI's dismissal request argues that Apple's case is poorly investigated and built on selective or out-of-context communications. The company says Apple is mischaracterizing employee actions as theft and treating "generic" product development information as if it were "trade secrets." OpenAI also contends that Apple made no reasonable efforts to maintain secrecy over the material in question.

A blog post sets the tone

On Tuesday, OpenAI published a blog post titled "Apple is getting this wrong." The post described the lawsuit as "careless, aggressive, and oddly personal." Several arguments from that post now appear in the formal dismissal motion, according to the filing reviewed by The Verge.

The central figure in the dispute is Chang Liu, a former Apple employee who now works at OpenAI. Apple accuses Liu of downloading confidential files after leaving the company. OpenAI counters that Liu was simply assisting ex-colleagues who asked for help. The company says Apple has twisted routine professional courtesy into a story of industrial espionage.

OpenAI's legal team argues that the lawsuit is not about protecting secrets at all. Instead, they say, it is about competition for talent and Apple's own struggles with artificial intelligence.

A sharp rebuke from OpenAI

In the motion, OpenAI makes its position unmistakable. "Apple should not be permitted to use a baseless and pretextual lawsuit to make up for its shortcomings in the market for talent and retaining its employees, and its failures to integrate AI into its products," the company wrote.

That sentence captures the core of OpenAI's defense. The company frames Apple's legal action as a distraction from deeper problems. OpenAI says it is building something "entirely new and different" from anything at Apple. The company also acknowledges its interest in hiring the best engineers, inventors, developers, and creators, many of whom left Apple for OpenAI.

The motion paints Apple as a giant struggling to keep up. OpenAI argues that Apple's inability to retain top talent and its slow progress on AI integration should not be remedied through the courts.

Legal maneuvers on both sides

The fight is moving quickly. On Monday, Apple asked for a preliminary injunction to prevent OpenAI and the named employees from accessing, acquiring, using, or disclosing the alleged confidential information while the lawsuit proceeds. That request came just one day before OpenAI's blog post and two days before the dismissal motion.

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A judge is set to hear arguments on OpenAI's motion to dismiss on October 1st. That hearing will be a key moment in the case. If the judge grants the motion, Apple's lawsuit could collapse before it reaches discovery. If not, the case will proceed into a longer and more expensive legal battle.

Legal observers note that OpenAI's strategy appears twofold. First, the company wants to kill the lawsuit early. Second, it wants to shape public perception. The blog post and the motion share language, suggesting a coordinated communications and legal effort.

What Apple claims

Apple's lawsuit centers on former employees who joined OpenAI. The company alleges that these employees took confidential documents with them. Apple says those documents were used to further OpenAI's hardware development plans. The company has not publicly detailed which specific documents were taken or how they were used.

Apple's request for a preliminary injunction is a strong signal that it believes the alleged harm is ongoing. Injunctions are typically sought when a party fears irreparable damage. Apple wants to freeze OpenAI's use of the disputed material while the case winds through the courts.

OpenAI, for its part, denies any wrongdoing. The company says its hardware work is independent and original. It argues that Apple is trying to slow down a competitor through litigation rather than through innovation.

The bigger picture

This lawsuit is one of several high-profile legal battles involving OpenAI. The company has faced scrutiny over its data practices, its partnerships, and its rapid expansion. Apple's case adds a new dimension, pitting two of the most valuable companies in technology against each other.

The outcome could have ripple effects across the industry. If Apple wins, companies may become more cautious about hiring from competitors. If OpenAI wins, it could embolden employees to move freely between firms, even when they have access to sensitive information.

The case also highlights the growing importance of AI hardware. OpenAI has reportedly been developing its own chips and devices, which would put it in direct competition with Apple. That context makes Apple's allegations more consequential.

For now, the immediate focus is on the October 1st hearing. Both sides will present their arguments, and the judge will decide whether OpenAI's motion to dismiss has merit. Until then, the public will watch closely as two tech giants trade accusations in court.

The Verge's Jess Weatherbed, a news reporter focused on creative industries, computing, and internet culture, covered the story. Weatherbed began her career at TechRadar before joining The Verge.

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