Apple alleges ex-engineer gave internal files to OpenAI

Apple filed a lawsuit in July in the U.S. District Court for the Northern District of California, alleging former engineer Chang Liu retained internal Apple files after leaving and provided them to OpenAI. The complaint also names former Apple employee Tang Yew Tan and ties the dispute to OpenAI’s work on a consumer hardware product.

Apple says it turned Liu’s former work laptop over to forensic examiners and found indications that files were removed after an internal investigation began. Several key exhibits Apple cites are redacted on the public court docket.

The complaint alleges Liu recruited OpenAI colleague Yu-Ting Peng in June to erase evidence. Earlier filings include text exchanges Apple describes as showing Liu replying with laughing-crying emojis. Apple is seeking a court injunction to limit OpenAI’s handling of materials it calls potentially misappropriated and has requested increased forensic oversight.

OpenAI moved to dismiss the case on Aug. 6, calling the claims a talent-retention grievance rather than legal grounds for theft. In a 31-page motion, OpenAI wrote, “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.” OpenAI argues that Apple’s access controls and security practices created exposure that allowed departing employees to retain materials.

Apple’s complaint notes more than 400 former Apple employees have joined OpenAI and alleges many are working on the lab’s consumer hardware effort. OpenAI has added hardware talent and assets, including a reported $6.5 billion acquisition of Jony Ive’s startup io, and former Apple executives now lead parts of its hardware group.

The parties are seeking different timelines from the court. Apple wants action before any OpenAI device ships. OpenAI seeks dismissal before discovery reaches its hardware roadmap and before extensive document exchange. Multiple exhibits remain sealed or redacted as the companies litigate confidentiality and discovery limits.

Apple declined to comment beyond its court filings. In its motion OpenAI maintained that former employees lawfully changed employers and that Apple’s claims lack factual support for theft or misappropriation. The court has not yet ruled on OpenAI’s motion to dismiss.