OpenAI denied Apple’s allegations of trade-secret theft on Monday, arguing that the iPhone maker has failed to prove that former employees stole confidential information.
In a filing submitted to the U.S. District Court in San Jose, California, OpenAI said the dispute was largely the result of Apple’s own internal procedures.
The company argued that Apple was now attempting to shift responsibility onto OpenAI and former employees.
Apple Sues OpenAI and Former Employees
Apple filed a lawsuit against OpenAI and former employees Tang Tan and Chang Liu in July.
The company accused them of misappropriating trade secrets related to hardware design, manufacturing processes and supply-chain operations.
The case comes as OpenAI expands beyond software and artificial intelligence services into consumer hardware.
Apple claims that OpenAI’s recruitment of former Apple employees formed part of a broader effort to gain access to a competitor’s confidential knowledge.
OpenAI Says Apple Is Trying to Slow a Rival
OpenAI, led by CEO Sam Altman, argues that Apple is using the lawsuit to restrict competition and discourage employees from leaving the company.
Court filings from both sides indicate that OpenAI has hired around 400 former Apple employees for its hardware initiative.
OpenAI also pointed to California employment law, arguing that workers are generally free to move between competing companies.
According to OpenAI, simply hiring former Apple employees does not prove that trade secrets were stolen.
Apple and OpenAI Relationship Turns Sour
The legal battle marks a significant deterioration in relations between the two technology companies.
Only around two years ago, Apple and OpenAI announced a partnership designed to expand ChatGPT’s reach and strengthen Apple’s position in artificial intelligence.
However, competition across the AI industry has intensified rapidly.
As OpenAI moves into hardware and Apple expands its own AI strategy, the two companies have increasingly found themselves competing in overlapping areas.
Apple Accuses Former Employees of Accessing Files
In its original lawsuit, Apple argued that OpenAI’s hiring strategy was designed to gain access to sensitive information about its hardware operations.
Apple also claimed that Tan and Liu accessed internal company files after leaving the business.
The company believes these actions support its broader allegations that confidential information was improperly retained or used.
OpenAI strongly disputes those claims.
OpenAI Criticizes Apple’s Internal Procedures
OpenAI said Apple encourages employees to use personal iCloud accounts when accessing work documents and performing certain job functions.
According to OpenAI, this practice can make it difficult for departing employees to clearly separate personal information from company files.
The AI company also criticized Apple’s procedure for employees leaving the business.
OpenAI said workers are often escorted from company premises immediately after resigning, leaving limited time to return devices, transfer documents or hand over responsibilities.
Former Apple Employee Explains File Access
Liu said in the filing that any access to Apple documents after his departure was intended to help former colleagues.
He claimed Apple employees continued contacting him after he left the company to locate files or answer questions about previous work.
Liu maintained that these interactions were designed to assist Apple rather than provide confidential information to OpenAI.
Tang Tan Says He Returned Apple Prototypes
Tan, who worked at Apple for 24 years, said he returned company prototypes before leaving.
He also said the materials he retained were not confidential.
Those materials reportedly included an employee departure checklist that Tan said did not contain protected information.
OpenAI Defends Employees’ Right to Leave Apple
OpenAI argued that employees have the legal right to leave Apple and join competitors or startups.
In its filing, the company suggested that Apple may dislike employees choosing to work for a fast-growing AI company, but that such career moves are not unlawful.
OpenAI also accused Apple of using inadequate internal procedures to support claims against former employees and competitors.
The dispute is likely to attract significant attention as competition between Apple and OpenAI expands across artificial intelligence, consumer devices and hardware development.
