BAIT Biting 101: Apple Chomps Sinks Its Teeth into OpenAI
July 14, 2026
Another dinobaby post. No AI unless it is an image. This dinobaby is not Grandma Moses, just Grandpa Arnold.
These BAIT outfits are indeed remarkable. In my lingo, as you may recall, means “big AI tech.” In my lectures, I like to point out that these companies are becoming increasingly similar. They have realized that the convergence creates the idea opportunity for one big winner to emerge, a second place finisher with a shot at about 60 percent of the revenues of the winner, and the rest of the BAIT outfits fighting over remaining revenue. Therefore, folks, its cage match time.
“Apple Sues OpenAI Alleging Trade Secret Theft, Says Scheme Was at Every Level” reports:
Apple on Friday [July 10, 2026] sued OpenAI in federal court in Northern California, alleging trade secret theft, saying that the artificial intelligence lab took the iPhone maker’s intellectual property in order to develop its own consumer hardware.
How did this work? Did busy little software daemons prowl through Apple’s digital information? Did OpenAI’s smart software launch a thousand and one agents to suck down any content connected to the expanded term “Apple”? Did Sam AI-Man show up in the Apple parking lot, handing out offers to happy Applers?
Nope.
Apple alleged that OpenAI’s hardware chief, Tang Tan, who is a former Apple vice president, has directed Apple employees interviewing at OpenAI to share Apple secrets as part of the interviewing process. Tan is named as a defendant in the suit. “He has directed job candidates still working for Apple to bring ‘actual parts’ from Apple to their interviews for ‘show and tell’ sessions in which he and his team at OpenAI can elicit still more Apple confidential information,” Apple said in the filing. Apple alleged that OpenAI coached departing Apple employees in how to evade security processes when leaving the iPhone maker, and that Chang Liu, a former employee who joined OpenAI, stole an Apple laptop. Liu is named as a defendant in the suit.
Well, that’s subtle. a human thought up the ploy. Information flowed at the humanoid to humanoid level. Tips and tricks to sidestep “security” flew like a hungry turkey (yes, turkeys eat apples, but turkeys do not climb apple trees. Like job hoppers from Apple to OpenAI, the turkeys just go for easy pickings in my opinion).
Okay, I want to make sure I understand this. Apple found itself the defendant in some interesting knowledge transfer litigation. Examples, include the Masimio medical device matter, the VirnetX dispute, the University of Wisconsin (go badger Alumni Research Foundation), and some others. I am not lawyer, so my recollection may be off base. Please, keep in mind that I am a dinobaby and averse to doing legal research.
Assume that one of these instances of Apple taking another firm’s intellectual property is true. Do you find it interesting that Apple is greatly aggrieved that a fellow BAIT outfit is asking potential employees a question like this: “Okay, Sally, do you want some oat milk for your coffee? No, okay. Tell me what expertise you have and include a couple of simple examples?”
Yeah, HR and interviewers never ask this type of question. Let’s stick with the oat milk interrogatory. That’s much more useful in today’s go fast and break things world. Am I correct?
The CNBC story concludes:
Apple is seeking damages, injunctions, and an order to force OpenAI to stop using its trade secrets.
Okay, but I have one question: What’s a trade secret? I usually ask questions when I know the answer or I have a reasonable sense of the answer. Does that mean a person who answers my question has revealed a secret when I already know the answer or have a good idea of the answer?
“That’s not the point,” squawks a legal eagle. I agree. I don’t want to be baited by a BAIT. The unfolding legal drama will be interesting to watch. Snacking on apples in a court may not be permitted.
Stephen E Arnold, July 14, 2026
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