OpenAI says Apple’s own security practices undermine its trade secrets case

OpenAI has officially moved to dismiss the trade secrets lawsuit filed by Apple, utilizing newly submitted court exhibits to outline a defense that shifts the focus from the actions of former employees to the internal security protocols of the iPhone maker. Rather than debating the specifics of what data was accessed, OpenAI is challenging the very foundation of Apple’s claim: that the information in question qualifies as legally protected trade secrets.

Challenging the "Trade Secret" Narrative

Apple’s legal action, initiated this past July, alleges that OpenAI orchestrated a deliberate effort to misappropriate confidential hardware data through former Apple engineers. As the litigation progresses, Apple has requested an expedited discovery process, citing internal findings that suggest additional former staff members may have been involved in or witnessed the alleged intellectual property theft.

OpenAI’s defense, however, paints a picture of a company with lax internal controls. The AI firm argues that Apple’s own information-management practices were so disorganized that they invalidate the "trade secret" status of the data. Specifically, OpenAI highlights:

• Permissive Account Usage: Apple allegedly allowed staff to utilize personal iCloud accounts for professional tasks.
• Inadequate Offboarding: The company reportedly failed to properly revoke access to sensitive systems once employees departed.
• Persistent Access: Evidence includes text messages showing an Apple manager remained logged into the personal iCloud account of defendant and former engineer Chang Liu long after his departure, using that access to transfer files and request technical assistance on ongoing projects.

A Strategic Defense or a "Door Was Unlocked" Argument?

While critics might characterize OpenAI’s stance as a "the door was unlocked, so it wasn't stealing" defense, the company’s legal team is aiming for a more nuanced point. By highlighting these procedural failures, OpenAI is attempting to demonstrate that the information was not handled with the level of security required to be classified as a trade secret. Furthermore, they argue that the interactions between former Apple employees and their new colleagues were rooted in professional assistance rather than malicious theft.

"OpenAI has no use, need or desire for Apple’s trade secrets. OpenAI is building something entirely new and different from anything at Apple."

The Competitive Landscape

OpenAI’s motion goes further, suggesting that Apple’s lawsuit is a strategic maneuver designed to stifle competition in the AI-powered hardware space rather than a genuine attempt to protect intellectual property. The filing notes that Apple has failed to identify specific stolen components, instead relying on "generic categories" such as product testing, vendor relationships, and manufacturing processes.

The AI company contends that Apple is struggling to retain top-tier talent and is failing to integrate AI effectively into its own product roadmap.

"Apple should not be permitted to use a baseless and pretextual lawsuit to make up for its shortcomings in the market for talent and retaining its employees, and its failures to integrate AI into its products," the motion asserts. Ultimately, OpenAI maintains that its interest lies in hiring the best engineers, many of whom are simply drawn to the innovative work being done at the AI startup—a reality that Apple appears unwilling to accept.