Apple Rejects OpenAI Dismissal Bid in Trade Secrets Lawsuit

Apple has asked a federal judge to reject OpenAI's motion to dismiss its trade secrets lawsuit, arguing that the AI company's defense relies on "distortion, speculation, and improper extrinsic evidence" [2]. The move intensifies a legal battle over allegations that OpenAI used confidential Apple information to advance its hardware development plans [1].

Apple's Rebuttal to Dismissal Claims

Apple filed its opposition brief on Wednesday, responding to OpenAI's earlier motion to dismiss the lawsuit [2]. OpenAI had described Apple's allegations as "meritless" and "rotten to its core," claiming Apple failed to properly identify protectable trade secrets and made no reasonable efforts to maintain secrecy [1]. OpenAI also asserted it is "building something entirely new and different from anything at Apple" and has no interest in its confidential material [2].

However, Apple's 32-page brief reiterates its core allegations against former Apple engineer Chang Liu and OpenAI hardware chief Tan Yew Tan [2]. Apple claims Liu exploited a "rare authentication bug" to download dozens of confidential engineering files, including a presentation on manufacturing and testing main logic boards, weeks after joining OpenAI [2]. Regarding Tan, Apple repeats allegations that he used internal project codenames to question interview candidates about unreleased Apple products and asked an Apple employee to bring components like batteries, system-on-chips (SoCs), and logic boards for a "show and tell" session at OpenAI [2].

Apple argues that OpenAI's defenses are factual disputes that require discovery and should not be grounds for dismissal [2]. Citing the Ninth Circuit's 2025 Quintara decision, Apple contends it does not need to disclose specific trade secret details publicly at this stage, as doing so would compromise the very secrets it seeks to protect [2]. Apple also pointed out that OpenAI's motion included extrinsic evidence like text messages and a website listing Apple's codenames, which Apple argues are improper for a dismissal request based solely on the complaint [2].

OpenAI's Previous Stance

OpenAI has consistently denied the allegations, stating it is "not aware of any evidence that this complaint has merit" [3]. In a blog post titled "Apple is getting this wrong," OpenAI called the lawsuit "careless, aggressive, and oddly personal" [1]. The company also claimed that Liu was merely assisting ex-colleagues who asked for help [1]. OpenAI previously won a similar trade-secret lawsuit in June 2026 against Elon Musk's xAI, where a judge ruled that questioning job applicants about prior professional experience is standard recruitment behavior and does not indicate intellectual property theft [3].

What to watch

• October 1 Hearing: Judge Edward J. Davila is scheduled to hear arguments on the motion to dismiss and Apple's request for a preliminary injunction [1, 2].
• Discovery Process: If the dismissal is denied, the case will proceed to discovery, where both sides will exchange evidence and information [2].
• Preliminary Injunction: Apple's request for a preliminary injunction seeks to prevent OpenAI and the named employees from accessing, using, or disclosing alleged confidential information during the lawsuit [1].

The outcome of the dismissal motion will determine whether Apple's detailed allegations of trade secret theft proceed to a full legal battle, potentially setting a precedent for how employee movement and intellectual property are handled in the competitive AI hardware sector.