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AI Business & IndustryTechCrunch AIPublished: Aug 7, 2026, 01:00 JST4 min read

OpenAI counters Apple trade secrets suit: Apple's own security lapses enabled access

OpenAI counters Apple trade secrets suit: Apple's own security lapses enabled access

Key takeaway

  • OpenAI filed a motion to dismiss Apple's trade secrets lawsuit by arguing that Apple's own security failures—such as allowing personal iCloud accounts for work and failing to revoke access when engineers left—made it impossible for the information to qualify as legally protected trade secrets.

  • OpenAI contends the suit is a competitive attack meant to slow its innovation, not a genuine protection of confidential information.

3 Key Points

  1. What happened

    OpenAI filed a motion to dismiss Apple's July trade secrets lawsuit, arguing that Apple's poor security practices—including allowing employees to use personal iCloud accounts for work and failing to revoke access after departure—undermined the company's ability to claim the information was legally protected.

  2. Why it matters

    OpenAI is reframing the case from theft to negligence on Apple's part, suggesting former Apple employees were simply assisting colleagues rather than orchestrating a scheme. The motion also challenges Apple's vague description of what was allegedly stolen ('generic categories' like component manufacturing and vendor relationships rather than specific trade secrets), which may weaken Apple's legal standing.

  3. What to watch

    Apple this week asked the court to expedite discovery, citing an internal investigation indicating additional former employees may have participated in or witnessed the alleged theft. OpenAI also characterizes the lawsuit as a competitive tactic—arguing Apple is using it to slow its AI-hardware development rather than address its own product and talent retention shortcomings.

In Depth

Read the full story

Apple filed a trade secrets lawsuit against OpenAI in July, alleging that the AI company had orchestrated a scheme to obtain confidential hardware information from former Apple engineers. The complaint has now prompted OpenAI to file a motion to dismiss, along with newly filed exhibits that detail the company's legal defense strategy.

Rather than deny that former Apple employees accessed certain information, OpenAI's motion argues that Apple's own security and offboarding practices are so deficient that they undermine Apple's ability to claim the information qualifies as legally protected trade secrets. OpenAI points to several specific failures: Apple allowed employees to use personal iCloud accounts for work-related purposes, and the company failed to properly revoke access to these accounts after employees departed. OpenAI also submitted text message records showing that an Apple manager remained logged into the personal iCloud account of defendant and former Apple engineer Chang Liu even after he left the company; the manager used this access to transfer files and later asked Liu for help with technical questions about Apple projects. According to OpenAI, these "inexplicable information-management practices" created confusion and unwanted access issues that Apple now characterizes as theft.

OpenAI further argues that Apple has been vague about what was actually stolen. The motion states that Apple hasn't specified which trade secrets or confidential components were allegedly taken, instead referring to them in "generic categories of the product-development process—such as component manufacturing, product testing, vendor and supplier relationships, and distribution channels." OpenAI contends that such broad, unspecific categories cannot qualify as protected trade secrets.

OpenAI's filing also reframes the narrative, arguing that former Apple employees who moved to OpenAI were simply trying to assist their prior colleagues, not executing a coordinated theft scheme. The motion states: "OpenAI has no use, need or desire for Apple's trade secrets. OpenAI is building something entirely new and different from anything at Apple." It emphasizes that OpenAI's interest in hiring former Apple engineers stems from their talent and the company's work in AI innovation, not from a desire to steal proprietary information. OpenAI suggests the lawsuit is pretextual, arguing that "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."

Meanwhile, Apple has responded by asking the court to expedite discovery, citing an internal investigation indicating that additional former employees may have participated in or witnessed the alleged theft of trade secrets. The case remains in early stages, with OpenAI's motion to dismiss now before the court.

Context & Analysis

Apple filed its complaint in July, accusing OpenAI of orchestrating a scheme to obtain confidential hardware information from former Apple engineers. The lawsuit centers on whether proprietary information was misappropriated during employee transitions. OpenAI's defense strategy pivots away from disputing the facts of data access and instead attacks Apple's foundational claim that the information was adequately protected as trade secrets under the law.

The motion reveals that Apple's internal investigation has identified additional former employees who may have been involved, and the company has now asked the court to expedite discovery—a procedural move that suggests Apple views the case as time-sensitive. However, OpenAI's framing of Apple's security gaps serves a dual purpose: it weakens the "trade secret" classification (which requires reasonable protective measures) and recharacterizes employee assistance as a natural consequence of Apple's own negligence rather than deliberate theft. OpenAI also argues the lawsuit is pretextual—a way for Apple to address its competitive weakness in AI-hardware talent and market positioning rather than genuine intellectual property protection.

FAQ

What specific security lapses is OpenAI citing in its defense?
OpenAI points to Apple allowing employees to use personal iCloud accounts for work and failing to revoke access after they departed. Text messages also show an Apple manager remained logged into the personal iCloud account of defendant and former Apple engineer Chang Liu after he left, transferring files and later asking him for help with technical questions about Apple projects.
What does OpenAI say about the information Apple claims was stolen?
OpenAI argues Apple hasn't specified which trade secrets were allegedly stolen, referring to them instead as 'generic categories of the product-development process—such as component manufacturing, product testing, vendor and supplier relationships, and distribution channels.' OpenAI contends these descriptions are too vague and generic to qualify as protectable trade secrets.

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