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OpenAI asks US judge to dismiss Apple's trade secrets lawsuit

Created at 6 Aug · 6:13 AM1 source↑ Market-relevant
IN SHORT

OpenAI has requested a U.S. judge dismiss Apple's lawsuit accusing the AI company and two former Apple employees of misappropriating trade secrets for consumer hardware development. OpenAI argues it has no need for Apple's secrets and is focused on creating new technology.

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Key Numbers

400former Apple employees now at OpenAI
24years Tang Tan spent at Apple
5months between Apple's initial contact and lawsuit filing

Who's Involved

OpenAI
AI company accused of trade secret misappropriation
Apple
iPhone maker suing OpenAI for trade secrets
Chang Liu
Former Apple engineer named in lawsuit
Tang Tan
Former Apple design executive, co-founder of io Products
OpenAI asks US judge to dismiss Apple's trade secrets lawsuit

↳ Why This Matters

This legal battle highlights the intense competition and ethical considerations surrounding talent acquisition and intellectual property in the rapidly evolving AI and consumer hardware sectors.

Key facts

  • OpenAI has asked a U.S. judge to dismiss Apple's trade secrets lawsuit.
  • Apple accused OpenAI and two former employees of misappropriating trade secrets for consumer hardware development.
  • OpenAI claims it has no use for Apple's trade secrets and is developing new technology.
  • Apple sought a preliminary injunction against OpenAI and former employees Chang Liu and Tang Tan.
  • OpenAI published internal messages and legal correspondence in its public rebuttal to the lawsuit.
  • OpenAI has formally requested a U.S. judge to dismiss Apple's lawsuit, which alleges that the artificial intelligence company and two former Apple employees misappropriated trade secrets to advance OpenAI's consumer hardware ambitions. OpenAI's legal team argued in a motion filed on Wednesday that the company has "no use, need or desire for Apple's trade secrets" and is focused on developing entirely new technology.

    Apple originally sued OpenAI on July 10, claiming a systematic effort to acquire and exploit confidential information through former employees, recruitment practices, and supplier relationships. The iPhone maker also sought a preliminary injunction against OpenAI and former employees Chang Liu and Tang Tan, alleging irreparable harm absent such an order.

    In response, OpenAI published a detailed public rebuttal, characterizing the lawsuit as "careless, aggressive and oddly personal." The company shared an email chain suggesting a mix-up in initial contact from Apple's counsel and iMessage exchanges that OpenAI claims show Apple employees seeking information from Liu after his departure. OpenAI also defended Tang Tan, who co-founded io Products, which merged with OpenAI, stating he has always been clear about not using confidential information from other companies.

    Frequently asked questions

    Apple alleges that OpenAI, with the help of former Apple employees, systematically acquired and exploited Apple's confidential information to accelerate its own consumer hardware business.

    OpenAI denies wrongdoing, stating it has no interest in other companies' trade secrets and is focused on developing its own innovative technology. They also pointed to a mix-up in initial communications with Apple's counsel.

    The lawsuit names Chang Liu, a former Apple engineer, and Tang Tan, a former Apple design executive who co-founded io Products which merged with OpenAI.

    A preliminary injunction is a court order that temporarily prohibits a party from taking certain actions while a lawsuit is ongoing, in this case, to prevent OpenAI from using alleged trade secrets.

    What Happens Next

    01A hearing on Apple's injunction request has not yet been scheduled.

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    Cadence

    How It Developed

    Apple sued OpenAI on July 10, alleging a scheme to acquire confidential information through former employees and supplier relationships.
    Apple filed a motion seeking a preliminary injunction against OpenAI and two former employees, Chang Liu and Tang Tan.
    OpenAI published a public rebuttal to the lawsuit, calling it "careless, aggressive and oddly personal."
    OpenAI shared an email chain showing a mix-up in pre-litigation contact between Apple's counsel and OpenAI.
    OpenAI published iMessage exchanges it claims show Apple employees seeking information from former employee Chang Liu after his departure.
    OpenAI stated that Tang Tan, a co-founder of io Products which merged with OpenAI, was clear about not using confidential information from other companies.
    OpenAI filed a motion on Wednesday asking a U.S. judge to dismiss Apple's lawsuit.
    OpenAI stated it has no use for Apple's trade secrets and is focused on building something new.

    Sources

    T1
    OpenAI asks US judge to dismiss Apple's trade secrets caseReuters
    T2
    OpenAI Posts Public Rebuttal to Apple's Trade Secrets Lawsuitmacrumors.com

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