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OpenAI counters Apple trade secret suit, cites Apple's own security lapses

Apple manager stayed logged into ex-engineer's iCloud after his departure...

Deep Dive

OpenAI is fighting back against Apple's trade secrets lawsuit with a motion to dismiss that shifts the blame onto Apple's own security practices. Rather than disputing whether former Apple employees shared specific information, OpenAI argues that Apple's widespread use of personal iCloud accounts for work and failure to revoke access after employees left means the information was never properly protected as trade secrets. To support this, OpenAI submitted text message records showing an Apple manager remained logged into defendant Chang Liu's personal iCloud account after he left, using it to transfer files and later asking Liu for technical help on Apple projects.

OpenAI further accuses Apple of avoiding mention of its own "inexplicable information-management practices" and of failing to specify which trade secrets were allegedly stolen, instead listing vague categories like component manufacturing, product testing, and vendor relationships. The AI company argues Apple is using the lawsuit as a pretext to hamstring a competitor in AI-powered hardware, adding that it has no desire for Apple's trade secrets and is merely hiring talented engineers who chose to leave. If the motion succeeds, it could set a precedent making it harder for companies to claim trade secret protection when their own security policies are lax—a significant implication for the escalating talent wars between Big Tech and AI startups.

Key Points
  • OpenAI's motion says Apple allowed personal iCloud accounts for work and failed to revoke access after employee departures.
  • Texts show an Apple manager used ex-engineer Chang Liu's personal iCloud after he left, undermining Apple's theft narrative.
  • Apple's complaint lists only generic trade secret categories, which OpenAI calls a baseless attempt to slow AI hardware competition.

Why It Matters

This case could redefine trade secret enforcement when lax security meets aggressive AI talent poaching—impacting every tech hiring dispute.

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