OpenAI Tells Court Apple's Own Security Lapses Undermine Its Trade Secrets Lawsuit

OpenAI has asked a federal court to dismiss Apple's trade secrets lawsuit, arguing that Apple's own loose information-security practices undercut the legal basis of its claims. The filing, reported on August 6, 2026, is OpenAI's most detailed legal response since Apple sued the company in July 2026 (TechCrunch).
Apple's original complaint accuses OpenAI of running a systematic effort to obtain confidential Apple information by hiring former Apple engineers who carried proprietary hardware data with them (Reuters). The suit names two former Apple employees as defendants, including Chang Liu, a former senior system electrical engineer. In early August, Apple asked the court to speed up discovery — the pretrial process where each side demands documents and testimony from the other — citing an internal investigation that suggests more former employees may have been involved in or witnessed the alleged trade-secret theft (TechCrunch).
OpenAI's dismissal motion attacks the suit on several fronts. The central argument: Apple's own security practices were so lax that the information at issue cannot qualify as legally protected trade secrets. To win a trade secrets claim, a company must show it took reasonable steps to keep the information confidential — think of it like a lock on a safe. If you leave the safe open and unattended, the law is less inclined to treat what was inside as a secret you were serious about protecting. OpenAI contends that Apple allowed employees to use personal iCloud accounts for work and failed to properly revoke system access after employees left.
In one concrete exhibit, OpenAI submitted text message records showing that an Apple manager stayed logged into Chang Liu's personal iCloud account after he left the company, used it to transfer files, and later asked Liu for help with technical questions about ongoing Apple projects (TechCrunch).
OpenAI also accused Apple of leaving out what it called Apple's "inexplicable information-management practices" from its original complaint, including the failure to secure systems when employees departed. The motion further argues that Apple has not specified which trade secrets or confidential components were allegedly stolen, referring to them only through broad categories such as component manufacturing, product testing, vendor and supplier relationships, and distribution channels (TechCrunch).
Beyond the legal arguments, OpenAI has framed the lawsuit as a competitive maneuver. The company argued that Apple is using trade secrets litigation to slow a competitor from innovating in AI-powered hardware, calling the suit "baseless and pretextual" (TechCrunch). OpenAI also accused Apple of bringing the case to stem an employee exodus to OpenAI (Financial Times). In a public response page titled "Apple is getting this wrong," published August 4, OpenAI corrected what it described as factual errors about its employees and shared messages documenting the events in question (OpenAI). Separately, OpenAI denied the trade-secret theft allegations and characterized the lawsuit as "careless" and "oddly personal" (Wall Street Journal).
The dispute turns on a core tension in trade secrets law. A plaintiff must demonstrate not only that information was taken improperly, but that the information was subject to reasonable efforts to maintain its secrecy. OpenAI's motion targets that second requirement directly. The iCloud exhibit, if accurate, is especially damaging: an Apple manager accessing a departed employee's personal account to retrieve work files, then consulting that former employee on ongoing Apple projects, undercuts any claim that the company treated the information as need-to-know, access-controlled, or otherwise ring-fenced.
The generic-catalog argument reinforces the point. Trade secrets law typically requires plaintiffs to identify the specific secrets at issue with enough detail that a court can evaluate the claim and a defendant can mount a defense. Apple's use of broad categories, as OpenAI characterizes them, leaves the court unable to assess whether the alleged secrets meet the legal threshold.
The broader context here is that OpenAI's competitive-harm framing introduces a second layer. By casting the suit as an attempt to impede a rival's AI hardware ambitions, OpenAI is signaling to the court and the public that Apple's motivations extend beyond protecting intellectual property. Whether that argument carries legal weight is a separate question from its public-relations value; courts generally focus on whether misappropriation occurred, not on why a plaintiff chose to sue. But the framing does contextualize the stakes for both companies, particularly if OpenAI is pursuing its own hardware initiatives that would benefit from talent with deep systems-engineering experience.
Apple's motion to expedite discovery signals that the company believes its internal investigation has only surfaced part of the picture. If additional former employees are found to have been involved, the scope of the case could widen considerably. Apple will need to rebut the security-practice allegations directly, likely by producing evidence of access controls, offboarding procedures, and policies governing personal-account use that contradict the picture OpenAI has painted.
The litigation is at an early stage, and a motion to dismiss tests the legal sufficiency of the complaint rather than the underlying facts. But the arguments OpenAI has assembled, particularly the iCloud evidence, put Apple in the position of having to explain why its own information-handling practices are consistent with a company that treats its hardware secrets as genuinely secret.


