OpenAI moves to dismiss Apple trade secrets suit over 400 hires

OpenAI asked a federal judge to dismiss Apple's trade secrets lawsuit, calling the claims meritless and arguing the iPhone maker failed to show any improper conduct by its former employees now at the AI startup.

"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 said in the filing.

The 31-page motion, filed Aug. 5 in the U.S. District Court for the Northern District of California, contends Apple's complaint "fails to sufficiently describe the information for which it claims trade secret protection" and that its "generalized product development categories" don't meet the legal standard for dismissal. OpenAI also contends that Chang Liu, a former Apple staffer accused of downloading confidential files, was assisting ex-colleagues who reached out for help, and that Tang Tan, OpenAI's chief hardware officer, followed standard recruiting practices when interviewing Apple employees.

Apple filed the lawsuit in July, alleging OpenAI orchestrated a coordinated effort to obtain confidential information through former employees, recruiting practices, and supplier relationships. The iPhone maker has since sent preservation letters to roughly 40 former employees now working at OpenAI, demanding they retain communications and meet with Apple attorneys. Apple also asked the court on Aug. 3 for a preliminary injunction to prevent OpenAI from accessing or using alleged confidential information while the case proceeds.

The Talent War Behind the Legal Battle

The dispute reflects a broader talent migration between the two companies. Roughly 400 former Apple employees now work at OpenAI, according to Axios, and OpenAI's motion leans into that dynamic — the word "fail" appears nearly 50 times in the filing, mostly aimed at Apple's AI integration struggles. OpenAI also noted that Apple's outside lawyers initially emailed the wrong person, confusing two Asian last names, and that Apple claimed a conversation with OpenAI's general counsel that never happened.

OpenAI published a blog post Tuesday titled "Apple is getting this wrong," which included iMessage logs the company says show Apple employees initiated contact with Liu to ask for help locating files after his departure — the opposite of Apple's theft narrative. OpenAI also said Tang Tan has been explicit about not using confidential information from other companies.

The two companies maintain a commercial partnership even as they litigate: Siri provides ChatGPT access on Apple devices, and iPhone users can sign up for ChatGPT directly through iOS settings. That relationship adds complexity to a case that could reshape how the AI industry approaches talent acquisition from incumbent tech firms.

What's at Stake

The preliminary injunction hearing is set for Oct. 1, and the broader case could take years to resolve. For OpenAI, a successful dismissal would remove a legal cloud over its hardware ambitions — the company has been developing AI devices including a smart speaker and glasses reportedly in partnership with Jony Ive. For Apple, the lawsuit is a test of whether it can protect proprietary information as its AI talent pool shrinks relative to rivals.

The outcome could set precedent for how aggressively AI startups can recruit from established tech companies. If Apple's claims survive dismissal, other incumbents may follow with similar suits, raising the cost of talent acquisition across the AI sector. If the case is thrown out, it could embolden startups to pursue aggressive hiring from legacy tech firms.

This article is for informational purposes only and does not constitute investment advice.