Editorial illustration for OpenAI Calls Apple's Lawsuit 'Rotten to Its Core' in Rebuttal
OpenAI Dismisses Apple's Lawsuit as 'Meritless'
OpenAI Calls Apple's Lawsuit 'Rotten to Its Core' in Rebuttal
OpenAI filed a motion yesterday to dismiss Apple's trade secrets lawsuit, calling the case "meritless" and asking a federal judge to throw it out entirely. The filing marks OpenAI's first formal legal response to Apple's July complaint, which accused former Apple employees turned OpenAI staffers of stealing confidential documents to help build out OpenAI's hardware plans.
The dispute centers on Chang Liu, a former Apple employee now at OpenAI who Apple says downloaded internal files after leaving the company. OpenAI's motion argues Apple is stretching ordinary product development chatter into something it wasn't, and that the company never took the basic steps needed to protect the information it now claims was stolen.
This isn't OpenAI's first swing at the lawsuit. On Tuesday, the company published a blog post titled "Apple is getting this wrong," describing the suit as "careless, aggressive, and oddly personal." Much of that language resurfaces in the court filing, where OpenAI accuses Apple of building its case on a shoddy investigation and cherry-picked communications pulled out of context.
OpenAI has asked a federal judge to toss out Apple’s landmark lawsuit accusing the ChatGPT maker of stealing trade secrets, describing the allegations as “meritless.”
Why this matters
For anyone building on top of foundation models, this case is really about what counts as proprietary once an idea leaves a company's walls. Apple's suit hinges on treating internal product development chatter as protected trade secrets; OpenAI's motion argues that's a stretch, and that Apple never locked that information down the way trade secret law requires. If a judge sides with OpenAI, it sets a useful marker for how loosely companies can define "secret" when an employee moves to a competitor, which matters a lot in an industry built on constant staff churn between labs.
If Apple wins, expect a chilling effect on hiring across AI companies, with legal teams tightening NDAs and restricting what new hires can even discuss about prior work. Founders and researchers should watch the judge's ruling on the motion to dismiss closely: it'll shape how aggressively big tech uses trade secret claims as a competitive weapon against smaller, faster-moving AI shops, rather than just competing on product.
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Common Questions Answered
What specific allegations does Apple make against OpenAI in its trade secrets lawsuit?
Apple accuses OpenAI of stealing confidential documents through former Apple employees, particularly Chang Liu, who allegedly downloaded internal files after leaving Apple to work at OpenAI. These downloaded materials were allegedly used to help build out OpenAI's hardware plans, forming the basis of Apple's trade secrets complaint filed in July.
How did OpenAI characterize Apple's lawsuit in its motion to dismiss?
OpenAI filed a motion describing Apple's case as "meritless" and "rotten to its core," asking a federal judge to throw out the entire lawsuit entirely. This represents OpenAI's first formal legal response to the trade secrets allegations brought against the company.
What is the central legal question at stake in the OpenAI versus Apple dispute?
The case centers on what qualifies as proprietary information once an employee leaves a company, specifically whether internal product development discussions can be legally protected as trade secrets. OpenAI argues that Apple failed to adequately secure the information the way trade secret law requires, while Apple contends that internal documents should be treated as protected confidential materials.
Why does this OpenAI and Apple case matter for companies building foundation models?
The lawsuit establishes important precedent for how loosely companies can define what counts as "secret" when employees transition between organizations in the AI industry. If the judge sides with OpenAI, it will set a marker for trade secret protection standards that could affect how foundation model companies safeguard their proprietary information and employee knowledge.
Further Reading
- OpenAI says Apple's trade secrets lawsuit is ‘rotten to its core' - The Verge
- OpenAI Responds To Apple Lawsuit—Says It Doesn't Have Trade Secrets - Forbes
- OpenAI Hits Back at Apple's Lawsuit — and Says It Has Receipts - Business Insider
- The wildest allegations in Apple's trade secrets lawsuit against OpenAI - TechCrunch
- Apple's lawyer mixed up Asian OpenAI employees before lawsuit - NBC News
