Apple vs OpenAI: Legal battle escalates as iPhone maker rejects dismissal plea
Apple in July accused OpenAI and two former Apple employees, Chang Liu and Tang Yew Tan, who now work at OpenAI, to steal company’s trade secrets.
- Aug 21, 2026,
- Updated Aug 21, 2026 3:01 PM IST
After OpenAI’s request to dismiss a lawsuit filed by Apple, the iPhone maker has hit back, urging a federal judge to reject the AI company’s plea. Apple claims that OpenAI’s case is based on “distortion, speculation, and improper extrinsic evidence.” This showcases a major escalation in tensions between the companies.
Apple in July accused OpenAI and two former Apple employees, Chang Liu and Tang Yew Tan, who now work at OpenAI, to steal company’s trade secrets. The company alleges that former employees have access to its confidential trade secrets, and they shared them with OpenAI to help develop a consumer hardware business.
Must read: Apple wants to halt OpenAI's AI gadget plans amid trade secret theft lawsuit: Here's why
Apple vs OpenAI
Recently, OpenAI asked the court to dismiss Apple's lawsuit, saying that they did not properly investigate the allegations before filing the case. OpenAI said that Apple “has failed to demonstrate it owns a protectable trade secret,” and it “has failed to allege conduct that plausibly supports a claim of misappropriation.”
“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 company lawyer mentioned in the motion to dismiss.
Must read: Apple wants to halt OpenAI's AI gadget plans amid trade secret theft lawsuit: Here's why
On the other hand, Apple alleges that Liu exploited a “rare authentication bug” to gain access to Apple's internal network storage and downloaded dozens of confidential engineering files after he joined OpenAI. The leaked data also reportedly consisted of how Apple's logic boards are manufactured and tested.
Whereas Apple claims Tan used internal Apple project codenames while interviewing job candidates to ask them about unreleased Apple products. The company also accused Tan of asking an Apple employee to bring confidential hardware components to OpenAI. Whereas OpenAI dismisses the claims.
Now, Judge Edward J. Davila is said to hear the company's arguments on October 1.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine
After OpenAI’s request to dismiss a lawsuit filed by Apple, the iPhone maker has hit back, urging a federal judge to reject the AI company’s plea. Apple claims that OpenAI’s case is based on “distortion, speculation, and improper extrinsic evidence.” This showcases a major escalation in tensions between the companies.
Apple in July accused OpenAI and two former Apple employees, Chang Liu and Tang Yew Tan, who now work at OpenAI, to steal company’s trade secrets. The company alleges that former employees have access to its confidential trade secrets, and they shared them with OpenAI to help develop a consumer hardware business.
Must read: Apple wants to halt OpenAI's AI gadget plans amid trade secret theft lawsuit: Here's why
Apple vs OpenAI
Recently, OpenAI asked the court to dismiss Apple's lawsuit, saying that they did not properly investigate the allegations before filing the case. OpenAI said that Apple “has failed to demonstrate it owns a protectable trade secret,” and it “has failed to allege conduct that plausibly supports a claim of misappropriation.”
“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 company lawyer mentioned in the motion to dismiss.
Must read: Apple wants to halt OpenAI's AI gadget plans amid trade secret theft lawsuit: Here's why
On the other hand, Apple alleges that Liu exploited a “rare authentication bug” to gain access to Apple's internal network storage and downloaded dozens of confidential engineering files after he joined OpenAI. The leaked data also reportedly consisted of how Apple's logic boards are manufactured and tested.
Whereas Apple claims Tan used internal Apple project codenames while interviewing job candidates to ask them about unreleased Apple products. The company also accused Tan of asking an Apple employee to bring confidential hardware components to OpenAI. Whereas OpenAI dismisses the claims.
Now, Judge Edward J. Davila is said to hear the company's arguments on October 1.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine