OpenAI Rejects Apple Trade Secret Theft Claims

OpenAI has denied Apple’s allegations that it obtained confidential trade secrets through former Apple employees, arguing that the iPhone maker has failed to provide evidence showing proprietary information was stolen.

In a filing submitted Monday to the U.S. District Court in San Jose, California, OpenAI said the dispute resulted from Apple’s own internal practices and accused the company of attempting to restrict competition.

Apple sued OpenAI and former employees Tang Tan and Chang Liu in July, alleging they misappropriated trade secrets involving hardware design, manufacturing processes and supply-chain operations. The lawsuit comes as OpenAI, led by CEO Sam Altman, expands its ambitions beyond artificial intelligence software into consumer hardware.

OpenAI has reportedly hired about 400 former Apple employees for its hardware initiative. The AI company argues that California law protects workers’ ability to move between competing businesses and claims Apple is using litigation to discourage employees from leaving.

The legal battle marks a sharp deterioration in relations between Apple and OpenAI. The companies announced a major partnership two years ago that expanded ChatGPT’s integration into Apple products, but growing competition in the AI sector has increased tensions.

Apple claims Tan and Liu accessed internal company documents after leaving their positions. OpenAI countered that Apple encourages workers to use personal iCloud accounts for work-related documents, making it harder for departing employees to separate personal files from company materials.

Liu said he accessed Apple documents after leaving only when former colleagues contacted him for help finding files or answering work-related questions. Tan, who worked at Apple for 24 years, said he returned company prototypes and retained only non-confidential materials.

OpenAI also criticized Apple’s employee departure procedures, saying workers are immediately escorted from company premises without sufficient time to return devices, organize files or transfer responsibilities.

The lawsuit adds another dimension to the intensifying Apple-OpenAI rivalry as both technology companies compete for talent and position themselves in the rapidly expanding AI hardware and consumer-device market.