Apple has raised concerns about the potential irreversible misuse of trade secrets in the AI era, while OpenAI has pushed back against accusations of stealing proprietary information from the iPhone maker.
Apple files supplemental brief alleging AI-driven trade secret risks
On Monday, Apple filed a supplemental brief in its trade-secret lawsuit against OpenAI, highlighting concerns about how artificial intelligence could exacerbate the misuse of confidential information. The brief argues that if trade secrets are fed into an AI system, the learning process may create "irreversible and continually propagating uses" of those secrets, complicating efforts to regain control. Apple’s attorneys emphasized the unique challenges posed by AI, stating that such misuse could be "uniquely challenging to undo and requires prompt investigation."
OpenAI denies allegations in court response
In a separate filing on the same day, OpenAI contested Apple’s claims, calling the dispute "a mess of Apple’s own making." The company requested that a federal judge deny Apple’s request for a preliminary injunction, which would bar OpenAI and two former Apple employees from accessing or disclosing alleged trade secrets during the case. OpenAI’s filing disputes Apple’s accusations, arguing that the former employees—Tang Tan and Chang Liu—did not misuse confidential information.
Key figures and allegations
Apple’s lawsuit centers on two former employees who now work at OpenAI. Tang Tan, a former Apple vice president of product design for the iPhone and Apple Watch, is now OpenAI’s chief hardware officer. Chang Liu, a former senior systems electrical engineer, serves on OpenAI’s technical staff. Apple alleges that Tan used confidential project code names during interviews and asked a candidate to bring "actual parts" they had worked on at Apple for a "show and tell" session. Apple also claims Liu continued accessing company files after leaving by exploiting what it described as a "rare, previously unknown authentication bug."
OpenAI disputes these allegations, stating that Tan returned Apple prototypes before leaving and kept only nonconfidential material. The company also asserts that any components brought to interviews were either old or publicly available and used solely as "demonstration aids." Regarding Liu, OpenAI says any Apple files he accessed after leaving were retrieved at the request of former colleagues who sought his help locating documents or answering questions about his prior work.
Broader implications of AI and trade secrets
Legal experts note that the rise of AI introduces new complexities to trade secret protection. Camilla Hrdy, a law professor at Rutgers specializing in trade-secret law and generative AI, told Business Insider that employees have long posed risks by carrying knowledge in their heads, but AI amplifies this by enabling the potential permanent embedding of secrets into systems. "Now they're taking that knowledge and plugging it into AI, and that could be a real loss of control. That is new," Hrdy said.
The dispute highlights broader concerns about how companies can safeguard proprietary information in an era where AI systems can learn and retain sensitive data. The case also underscores the challenges of enforcing trade secret protections when confidential information may be irretrievably integrated into AI models or workflows.