OpenAI Renews Bid to Dismiss Apple's Trade Secret Lawsuit

In a filing on Wednesday, OpenAI renewed its effort to have a California federal court throw out the lawsuit brought by Apple in 2025. The motion requests dismissal with prejudice, meaning Apple would be barred from refiling the case. The lawsuit accuses Liu and Tan of stealing confidential trade secrets related to Apple's proprietary chip designs and using them to develop competing technology at io Products, a startup backed by OpenAI.

OpenAI has previously argued that Apple's complaint fails to specify which trade secrets were allegedly misappropriated, and that the claims are overly broad. The new petition reiterates that position, stating that Apple's allegations are based on speculation rather than evidence. OpenAI also contends that Tan and Liu's work at io Products does not infringe on Apple's intellectual property, as the technology in question is based on publicly available research and independently developed innovations.

Apple has not yet responded to the latest filing, but the company has previously maintained that the case is essential to protect its competitive advantage and investments in chip development. The lawsuit has drawn attention from Silicon Valley, where tensions over non-compete agreements and trade secret protection have intensified amid a wave of startup formations by former Apple employees.

Legal experts say the case could set a precedent for how courts handle claims involving employees moving from tech giants to AI-focused startups. A hearing schedule has not been set, but the court is expected to rule on the motion within the coming months.

Why This Matters

The outcome could influence how tech companies enforce trade secret protections against former employees who join or found AI ventures.
It tests the balance between corporate intellectual property rights and worker mobility, a hot-button issue in the industry.
A dismissal would bolster OpenAI's legal stance and potentially encourage more AI startups to hire from major tech firms.

Background

The lawsuit, filed in 2025, centers on allegations that Liu and Tan, both former Apple chip engineers, took confidential documents containing designs and processes to io Products, a startup backed by OpenAI. Apple claims the technology developed by io Products mirrors its proprietary chip architecture. OpenAI and the defendants have denied the allegations, arguing that Apple is targeting them to stifle competition. Earlier motions to dismiss were denied, prompting this renewed effort with additional legal arguments.

Key Perspectives

Apple: Argues that the theft of its trade secrets undermines years of R&D investment, and that the lawsuit is necessary to enforce intellectual property rights and prevent future misappropriation. OpenAI and Defendants: Contend that Apple's claims are vague and lack specificity, and that the technology at issue was developed independently. They assert that the lawsuit is a meritless attempt to hinder competition in the AI chip space. Legal experts and industry observers: Divided, with some viewing the case as a legitimate test of trade secret law in the AI era, while others caution that overzealous litigation could chill innovation and employee mobility.

What to Watch

The court's decision on the dismissal motion, expected within several months.
Any new evidence or filings from Apple that could strengthen the trade secret claims.
The broader impact on hiring practices at major tech companies and AI startups.

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