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OpenAI Files Motion to Dismiss Apple Trade Secrets Lawsuit, Calls It 'Rotten to Its Core'

OpenAI filed a motion to dismiss Apple's trade secrets lawsuit on Tuesday, calling the complaint "rotten to its core" and arguing that Apple is repackaging generic product development information as protected trade secrets. The motion, submitted to a federal judge in California, marks OpenAI's formal legal response to the lawsuit Apple filed in July. Apple alleged that former employees who left for OpenAI stole confidential documents to advance OpenAI's hardware development plans, which reporte

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OpenAI Files Motion to Dismiss Apple Trade Secrets Lawsuit, Calls It 'Rotten to Its Core'

OpenAI filed a motion to dismiss Apple's trade secrets lawsuit on Tuesday, calling the complaint "rotten to its core" and arguing that Apple is repackaging generic product development information as protected trade secrets.

The motion, submitted to a federal judge in California, marks OpenAI's formal legal response to the lawsuit Apple filed in July. Apple alleged that former employees who left for OpenAI stole confidential documents to advance OpenAI's hardware development plans, which reportedly include a smart speaker, smart glasses, and a wearable pin.

OpenAI's filing builds on arguments the company previewed in a blog post earlier this week titled "Apple is getting this wrong." The motion characterizes the lawsuit as "careless, aggressive, and oddly personal," and alleges that Apple's case relies on selective or out-of-context communications.

The disputed employee

One central point of dispute involves Chang Liu, a former Apple engineer now working at OpenAI. Apple claims Liu downloaded confidential files after leaving the company. OpenAI counters that Liu was simply assisting former colleagues who asked him for help with technical issues, and that Apple has mischaracterized routine professional interactions as theft.

"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," OpenAI wrote in the filing.

Trade secrets or generic knowledge

OpenAI also argues that the information Apple claims as trade secrets was not subject to reasonable efforts to maintain confidentiality, a standard requirement under trade secret law. The motion describes much of the disputed material as generic product development information that does not qualify for trade secret protection.

What comes next

Apple escalated its side of the dispute on Monday, filing for a preliminary injunction that would bar OpenAI and the named employees from accessing, using, or disclosing the alleged confidential information while the case proceeds. The judge is scheduled to hear arguments on the dismissal motion on October 1.

The lawsuit is widely viewed as part of a broader conflict between the two companies. Apple has struggled to ship its own competitive AI products while OpenAI has expanded aggressively into consumer hardware. Reports suggest OpenAI is developing a range of physical products that could compete with Apple's ecosystem, and the fight over talent is one front in that larger battle.

Sources

The Verge: OpenAI says Apple's trade secrets lawsuit is 'rotten to its core' — https://www.theverge.com/tech/976042/openai-apple-trade-secrets-lawsuit-dismissal-request

OpenAI: Apple is getting this wrong — https://openai.com/index/apple-is-getting-this-wrong/

Court filing: Motion to Dismiss — https://storage.courtlistener.com/recap/gov.uscourts.cand.474095/gov.uscourts.cand.474095.59.0.pdf

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