Apple Files Rebuttal in OpenAI Trade Secret Theft Lawsuit

Apple has filed a formal response in the U.S. District Court for the Northern District of California, rejecting OpenAI’s attempt to dismiss a lawsuit alleging the theft of proprietary hardware trade secrets [1, 2]. The legal battle, which centers on claims that former Apple employees funneled confidential designs to OpenAI, represents a significant escalation as both companies prepare to compete in the consumer hardware market [2].

The core allegations

Apple’s filing disputes OpenAI’s claim that the lawsuit lacks merit, asserting that the company has identified specific, protected trade secrets that were misappropriated [1]. The complaint alleges that former Apple engineer Chang Liu bypassed security to download confidential files while developing hardware for OpenAI, and that OpenAI Chief Hardware Officer Tang Yew Tan solicited internal components—such as batteries and logic boards—from current Apple employees during job interviews [1].

OpenAI had previously moved to dismiss the case, arguing that Apple failed to demonstrate the existence of protectable trade secrets and suggesting that Apple’s own lax offboarding procedures were responsible for any data exposure [1]. OpenAI also claimed that certain exchanges between employees were routine professional inquiries rather than unauthorized data transfers [1]. Apple countered that these arguments rely on "extrinsic evidence" and hypothetical explanations that are inappropriate for a motion to dismiss, maintaining that its allegations of systematic information gathering are plausible [1].

Hardware competition stakes

The litigation arrives as OpenAI pivots toward physical consumer products, a shift that places it in direct competition with Apple [2]. OpenAI’s hardware efforts gained momentum in 2025 through its $6.5 billion acquisition of io Products, a startup founded by former Apple design chief Jony Ive and other ex-Apple staff [2]. While OpenAI has provided few details on its upcoming hardware, the company expects to release its first consumer device as soon as the end of 2026 [2].

Apple’s legal action is specifically focused on the protection of its hardware business, including product architecture, metal-finishing methods, and unreleased product roadmaps [2]. The company argues that these details are distinct from the general professional experience that employees are permitted to carry between employers [2].

What to watch

• Court Ruling: Monitor the U.S. District Court for the Northern District of California for a decision on whether the case will proceed to discovery or be dismissed [1].
• OpenAI Hardware Timeline: Watch for further disclosures regarding OpenAI’s first consumer device, which is currently targeted for release by the end of 2026 [2].
• Evidence Disclosure: Observe whether additional redacted communications between former Apple staff and their new employer are made public as the legal process continues [1].

The outcome of this motion will determine whether Apple can force a full discovery process, potentially exposing internal details of OpenAI’s hardware development pipeline. For now, the case remains a high-stakes test of how courts distinguish between legitimate talent poaching and the transfer of proprietary intellectual property in the AI era [2].