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OpenAI Asks Judge to Dismiss Apple's Lawsuit, Calling Claims 'Rotten to the Core'

OpenAI Seeks Dismissal of Apple Lawsuit, Calls Trade Secrets Claims 'Rotten to the Core'

OpenAI has asked a federal judge to dismiss Apple's trade secrets lawsuit, arguing that the claims are baseless and that the iPhone maker is using litigation to compensate for its inability to retain top AI talent.

OpenAI Seeks Dismissal of Apple Lawsuit, Calls Trade Secrets Claims 'Rotten to the Core'  OpenAI has asked a federal judge to dismiss Apple's trade secrets lawsuit, arguing that the claims are baseless and that the iPhone maker is using litigation to compensate for its inability to retain top AI talent.  The latest court filing marks a significant escalation in the legal battle between two of the technology industry's biggest players, with OpenAI strongly denying allegations that it orchestrated the theft of Apple's confidential information through employee recruitment.  OpenAI Rejects Apple's Allegations  According to the court filing, OpenAI said Apple's lawsuit was filed without a proper investigation and relies on selectively presented communications that misrepresent the actions of former Apple employees.  The company argued that its hiring practices followed standard industry procedures and denied any involvement in the alleged theft of trade secrets.  OpenAI specifically defended its Chief Hardware Officer, Tang Tan, stating that his recruitment efforts were consistent with normal hiring practices across the technology industry.  The AI company also disputed Apple's allegations against former Apple engineer Chang Liu, who is accused of downloading confidential hardware-related files after joining OpenAI.  OpenAI Says Former Apple Employee Was Helping Colleagues  OpenAI claims that Chang Liu was not stealing confidential information but was instead assisting former Apple colleagues who had contacted him after his departure.  According to the filing, Apple employees allegedly asked Liu to help locate information required for ongoing projects so their work could continue without disruption.  OpenAI included text message excerpts in its filing that it says demonstrate Apple employees requesting Liu's assistance after he had already left the company.  OpenAI Criticizes Apple's AI Strategy  In a strongly worded filing, OpenAI argued that Apple is attempting to portray routine recruitment practices as corporate espionage.  The company also took aim at Apple's artificial intelligence efforts, claiming the tech giant has struggled to integrate AI into its products and is using the lawsuit as a response to increasing competition for AI talent.  OpenAI's lawyers wrote that Apple's complaint was:  "Plainly filed without adequate investigation and built on selectively excerpted communications and ordinary conduct stripped of context... 'rotten to its core.'"  The filing further argued that Apple should not be allowed to pursue what OpenAI described as a "baseless and pretextual" lawsuit to compensate for shortcomings in attracting and retaining AI professionals.  Apple Expands Legal Action Against OpenAI  The latest filing comes after Apple expanded its lawsuit by identifying at least 10 additional former Apple employees who may have been involved in the alleged trade secrets theft.  In addition to Chang Liu and Tang Tan, Apple also named OpenAI employee Yu-Ting "Alyssa" Peng among those connected to the case.  Apple has also requested a preliminary injunction, asking the court to order OpenAI to stop using any allegedly stolen trade secrets and return confidential Apple information while the lawsuit is ongoing.  Why Is Apple Suing OpenAI?  Apple filed the lawsuit last month, accusing OpenAI of conducting a coordinated effort to recruit Apple engineers and obtain confidential company information.  The company alleges that former iPhone engineer Chang Liu exploited an authentication bug that allowed him to continue accessing Apple's internal systems after accepting a position at OpenAI. Apple claims Liu downloaded sensitive hardware-related documents before his access was revoked.  OpenAI has denied these allegations, maintaining that Liu's actions were intended only to assist former colleagues who requested help locating information for ongoing Apple projects.  What Happens Next?  The federal court will now decide whether Apple's lawsuit can proceed or whether OpenAI's motion to dismiss should be granted.  The outcome could have significant implications for employee mobility, AI talent recruitment, and the handling of trade secrets across the technology industry as competition among major AI companies continues to intensify.

The latest court filing marks a significant escalation in the legal battle between two of the technology industry's biggest players, with OpenAI strongly denying allegations that it orchestrated the theft of Apple's confidential information through employee recruitment.

OpenAI Rejects Apple's Allegations

According to the court filing, OpenAI said Apple's lawsuit was filed without a proper investigation and relies on selectively presented communications that misrepresent the actions of former Apple employees.

The company argued that its hiring practices followed standard industry procedures and denied any involvement in the alleged theft of trade secrets.

OpenAI specifically defended its Chief Hardware Officer, Tang Tan, stating that his recruitment efforts were consistent with normal hiring practices across the technology industry.

The AI company also disputed Apple's allegations against former Apple engineer Chang Liu, who is accused of downloading confidential hardware-related files after joining OpenAI.

OpenAI Says Former Apple Employee Was Helping Colleagues

OpenAI claims that Chang Liu was not stealing confidential information but was instead assisting former Apple colleagues who had contacted him after his departure.

According to the filing, Apple employees allegedly asked Liu to help locate information required for ongoing projects so their work could continue without disruption.

OpenAI included text message excerpts in its filing that it says demonstrate Apple employees requesting Liu's assistance after he had already left the company.

OpenAI Criticizes Apple's AI Strategy

In a strongly worded filing, OpenAI argued that Apple is attempting to portray routine recruitment practices as corporate espionage.

The company also took aim at Apple's artificial intelligence efforts, claiming the tech giant has struggled to integrate AI into its products and is using the lawsuit as a response to increasing competition for AI talent.

OpenAI's lawyers wrote that Apple's complaint was:

"Plainly filed without adequate investigation and built on selectively excerpted communications and ordinary conduct stripped of context... 'rotten to its core.'"

The filing further argued that Apple should not be allowed to pursue what OpenAI described as a "baseless and pretextual" lawsuit to compensate for shortcomings in attracting and retaining AI professionals.

Apple Expands Legal Action Against OpenAI

The latest filing comes after Apple expanded its lawsuit by identifying at least 10 additional former Apple employees who may have been involved in the alleged trade secrets theft.

In addition to Chang Liu and Tang Tan, Apple also named OpenAI employee Yu-Ting "Alyssa" Peng among those connected to the case.

Apple has also requested a preliminary injunction, asking the court to order OpenAI to stop using any allegedly stolen trade secrets and return confidential Apple information while the lawsuit is ongoing.

Why Is Apple Suing OpenAI?

Apple filed the lawsuit last month, accusing OpenAI of conducting a coordinated effort to recruit Apple engineers and obtain confidential company information.

The company alleges that former iPhone engineer Chang Liu exploited an authentication bug that allowed him to continue accessing Apple's internal systems after accepting a position at OpenAI. Apple claims Liu downloaded sensitive hardware-related documents before his access was revoked.

OpenAI has denied these allegations, maintaining that Liu's actions were intended only to assist former colleagues who requested help locating information for ongoing Apple projects.

What Happens Next?

The federal court will now decide whether Apple's lawsuit can proceed or whether OpenAI's motion to dismiss should be granted.

The outcome could have significant implications for employee mobility, AI talent recruitment, and the handling of trade secrets across the technology industry as competition among major AI companies continues to intensify.

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