Apple Escalates OpenAI Lawsuit With Evidence Destruction Claims Over Stolen Trade Secrets

Reviewed byNidhi Govil

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Apple filed new allegations against OpenAI claiming former employee Chang Liu downloaded confidential circuit schematics and trained AI agents using proprietary Apple information. The legal battle intensifies as Apple pushes for expedited discovery while OpenAI denies wrongdoing and blames Apple's employee exit process for the dispute.

Apple Accuses OpenAI of Destroying Evidence in Escalating Legal Battle

Apple is demanding expedited discovery in its legal battle with OpenAI over concerns the AI company is actively destroying evidence.

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In a Monday filing, Apple accuses OpenAI of only recently handing over a MacBook used by former Apple employee Chang Liu, which allegedly contained discussions about "destroying the types of forensic data Apple needs."

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The filing represents the latest escalation in the Apple OpenAI lawsuit that began in July, centering on allegations that the ChatGPT-maker engaged in trade secret theft to build AI devices.

Source: MacRumors

Source: MacRumors

Former Apple Employee at Center of Trade Secret Allegations

The lawsuit revolves around three former Apple employees who recently joined OpenAI, with Chang Liu emerging as a central figure. Apple alleges that Liu, a former senior system electrical engineer, kept a company-owned MacBook after leaving Apple in January.

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Apple accuses OpenAI of failing to inspect the laptop "despite having the MacBook in their possession since the start of the lawsuit" in July.

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When OpenAI finally provided the device to Apple on August 21st, forensic inspection allegedly uncovered that Liu "not only downloaded a confidential Apple circuit schematic but also used it in his work at OpenAI."

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Circuit Schematic and AI Agent Training Raise Concerns

Apple's forensic investigation revealed that Liu allegedly downloaded dozens of confidential Apple files from the company's third-party cloud storage system, including a highly confidential power converter circuit schematic.

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According to the filing, Liu uploaded this circuit schematic to LTspice software, a program that simulates circuit performance before physical construction.

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Apple alleges that Liu accessed the circuit and trained an AI agent using proprietary Apple information in March 2026.

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In a text message from that period included in the brief, Liu reportedly stated he deployed an AI agent to autonomously run circuit simulations.

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Apple's legal team argues this creates irreversible damage: "Where trade secret information is fed into an AI agent or model that 'learns' from it, such 'learning' may create irreversible and continually propagating uses of the trade secret."

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Source: Mashable

Source: Mashable

Evidence of Alleged Cover-Up Attempts

Apple's investigation uncovered messages suggesting Liu attempted to destroy forensic evidence after learning about the company's internal investigation in June. The filing claims Liu discussed with OpenAI colleague Yu-Ting Peng "the need to 'restore' and then 'start using' Apple-owned devices" and "discussed destroying the types of forensic data Apple needs."

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Apple maintains that "important forensic artifacts on which forensic inspections rely -- such as logs, metadata, and usage records -- are transient and at risk of being lost, overwritten, or destroyed."

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The company also claims that Liu's Mac Mini, allegedly used to power the LTspice simulations, should be handed over as evidence, arguing that "the full scope of [his] misconduct thus remains unknown."

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OpenAI Denies Wrongdoing, Blames Apple's Exit Process

OpenAI has vigorously denied the allegations of misappropriating trade secrets, arguing "this dispute is a mess of Apple's own making, and it is trying to blame everyone else" in a Monday filing.

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The AI company maintains "there is no evidence that Liu accessed any Apple information through improper means or for any improper purpose," adding that "Liu has no use for Apple confidential information."

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OpenAI contends that Apple encourages employees to use personal iCloud accounts to access work documents, making it difficult for departing employees to separate personal and company information.

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The company criticizes Apple's employee exit process, noting that the policy of immediately escorting departing employees from premises doesn't give them enough time to return company devices, transfer internal files, or hand over responsibilities.

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AI Talent Poaching and Broader Corporate Disputes

The legal battle reflects intensifying competition for AI talent between the tech giants. OpenAI has hired roughly 400 employees from Apple for its hardware initiative, according to court filings.

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The AI lab, led by CEO Sam Altman, contends Apple is using the lawsuit to slow a potential competitor and discourage employee departures.

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OpenAI emphasized that California law allows employees to freely move between rivals, arguing that "employees can leave a company like Apple that has struggled to adopt AI and move to an exciting startup that builds innovative products."

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The lawsuit also names Tang Tan, another former Apple employee who spent 24 years at the company, accusing him of encouraging departing employees to discuss confidential information during OpenAI interviews.

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Tan maintains he returned Apple prototypes before departing and only retained non-confidential materials.

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This corporate dispute marks a dramatic shift from just two years ago when the companies forged a partnership intended to boost ChatGPT's reach and help Apple gain footing in AI, though the relationship quickly soured as competition intensified.

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Source: Axios

Source: Axios

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