Dispute With OpenAI Said to Be a 'Mess of Apple's Own Making'

OpenAI yesterday denied Apple's allegations of trade secret theft, telling a federal court that Apple failed to show any confidential information was actually stolen by its former employees, according to Reuters.

In a new filing submitted to the U.S. District Court in San Jose, California, OpenAI argued that the dispute is "a mess of Apple's own making." The filing is a direct response to Apple's new forensic evidence submitted against former Apple employees Chang Liu and Tang Tan, whom Apple accuses of stealing trade secrets related to hardware design, manufacturing, and supply chain operations after filing the lawsuit in July.

OpenAI says the lawsuit is an attempt to slow a rival and deter more employee departures. In court filings, it notes that it has hired about 400 former Apple employees for its hardware projects. The company argues that California law allows workers to move freely between competitors, while shifting attention to Apple's internal practices instead of addressing the forensic evidence allegation by allegation.

OpenAI alleges that Apple encourages staff to use personal iCloud accounts for work, potentially blurring the boundary between personal and company data after an employee leaves. It also says Apple's practice of immediately escorting departing employees off site leaves too little time to return devices or internal files, portraying the allegations as the result of a flawed offboarding process rather than intentional theft.

The filing says Liu retained access to Apple documents only to help former colleagues find files or answer questions, and that Apple employees repeatedly contacted him for support. Tan said he returned his Apple prototypes before leaving and kept only non-confidential materials, including a standard departure checklist.

OpenAI characterized the dispute as employees choosing to leave a company it says has been slow to adopt AI for a faster-moving competitor. It argued that Apple should not use its own internal failures to portray those departures as unlawful. Judge Edward J. Davila is scheduled to hear arguments on October 1.