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Apple seeks court order to block OpenAI from using alleged trade secrets in hardware ambitions

4 August 2026 at 16:00

OpenAI

Apple has asked a federal judge for a preliminary injunction that would stop OpenAI and two of its former employees from accessing, using, or disclosing what the iPhone maker claims are its confidential trade secrets, escalating a high-stakes legal battle over artificial intelligence and future consumer devices.

In a filing Monday in the U.S. District Court for the Northern District of California, Apple argued it faces β€œirreparable harm” without the order. The motion comes weeks after the company sued OpenAI, the two ex-employees now working for the ChatGPT maker, and OpenAI’s commercial arm io Products. Apple alleges the defendants misappropriated proprietary information to advance OpenAI’s push into consumer hardware.

The two former Apple staffers named are Chang Liu, previously a senior system electrical engineer, and Tang Yew Tan, who served as vice president of product design for the iPhone and Apple Watch. Apple is also seeking expedited discovery, including documents related to alleged access of its trade secrets, and depositions of Liu, Tan, OpenAI employee Yu-Ting Peng, an unnamed OpenAI worker who previously worked at Apple, and corporate representatives from OpenAI and io Products.

The lawsuit highlights growing rivalry between the two tech giants. Analysts have suggested OpenAI is developing its own phone or other AI-powered device that could operate without traditional apps or operating systems, potentially drawing users away from Apple’s dominant iPhone ecosystem. The legal action follows OpenAI’s successful defense against a separate challenge from Elon Musk’s xAI.

The case underscores intensifying competition in AI hardware, where control over key technical knowledge could shape the next generation of consumer gadgets. A ruling on the injunction request is pending.

MacDailyNews Take: OpenAI, the company behind ChatGPT, the AI for newbies who don’t know better alternatives exist, seems to be filled with traitors.


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Apple sends legal preservation letters to dozens of former employees now at OpenAI

17 July 2026 at 14:00

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Apple has intensified its high-stakes legal fight against OpenAI by sending formal preservation letters to approximately 40 former employees who now work at the AI company, according to reports from the Financial Times and corroborated by tech outlets.

The move comes just one week after Apple filed a lawsuit against OpenAI (and its hardware-focused entity, io Products), along with two named former Apple executives: Tang Tan (OpenAI’s Chief Hardware Officer) and Chang Liu (a senior hardware team member). In the complaint, Apple accuses OpenAI of orchestrating a coordinated effort to poach talent and misappropriate confidential information related to hardware engineering, product development, manufacturing processes, and other proprietary designs.

Preservation Letters: What They Mean

These letters are not lawsuits themselves, but formal legal notices requiring recipients to preserve all potentially relevant documents, communications, emails, files, and other evidence. They serve as an early step in litigation to prevent the destruction or alteration of materials that could be critical to the case. Apple appears to believe the alleged misconduct extends beyond the individuals explicitly named in the original filing, viewing the evidence uncovered so far as potentially just the β€œtip of the iceberg.”

Apple’s lawsuit highlights that more than 400 former Apple employees have joined OpenAI. While hiring talent from competitors is common in Silicon Valley (especially in California, where non-compete agreements are limited), Apple alleges specific breaches involving the theft of trade secrets, violation of employment contracts, and improper use of proprietary information to accelerate OpenAI’s hardware ambitions, particularly its reported AI device development.

Background on the Dispute

β€’Β Key Defendants: OpenAI, io Products, Tang Tan (24-year Apple veteran who led product design), and Chang Liu (former senior system electrical engineer).

β€’Β Apple’s Demands: An injunction to stop OpenAI from using any Apple-derived information, plus monetary damages.

β€’Β OpenAI’s Response: The company has denied the allegations, stating it is β€œnot aware of any evidence that this complaint has merit.”

The escalation underscores growing tensions between the two tech giants. Apple, a leader in consumer hardware, is protective of its tightly controlled supply chain and engineering secrets, while OpenAI is pushing aggressively into hardware to leverage its chatbot.

This development is likely to fuel further scrutiny of talent poaching in the AI sector, where companies compete fiercely for top engineers. Legal experts note that preservation letters are standard in complex intellectual property cases and signal Apple’s intention to build a broader case through discovery.

As the lawsuit progresses, both sides will be watching closely, especially as OpenAI continues its hardware timeline reportedly unchanged despite the legal pressure. The case could set important precedents regarding employee mobility, trade secret protection, and the blurry lines between accumulated expertise and stolen proprietary information in the fast-moving tech industry.

MacDailyNews Take: OpenAI, the company behind ChatGPT, the AI for newbies who don’t know better alternatives exist, seems to be filled with traitors.


β€Ž
Please help support MacDailyNews β€” and enjoy subscriber-only articles, comments, chat, and more β€” by subscribing to our Substack: macdailynews.substack.com. Thank you!

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The post Apple sends legal preservation letters to dozens of former employees now at OpenAI appeared first on MacDailyNews.

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