Apple v. OpenAI trade secret lawsuit — OpenAI agrees not to use the data and will image 14 employees' devices
Apple sued OpenAI, OpenAI's hardware company io Products, and former Apple employees Chang Liu and Tang Tan in July 2026, alleging they took Apple trade secrets. At an October 14 hearing Judge Edward Davila said he was 'highly likely' to grant Apple a preliminary injunction; OpenAI then voluntarily agreed not to use the information Apple says was stolen while the case continues, and to collect forensic images of devices from 14 employees. The same day OpenAI alleged that a former employee who went back to Apple took more than 100 confidential files about its unreleased hardware on June 2. Apple denies it.
The three lines
- Origin — Apple sued OpenAI, io Products and two ex-employees in July 2026 for trade-secret theft
- October 14 — after the judge signaled a likely injunction, OpenAI agreed not to use the data and to image 14 employees' devices
- Counter-claim — OpenAI says an ex-employee took 100+ files back to Apple; Apple denies
Key questions
- Why is Apple suing OpenAI
- **Apple says former employees took hardware trade secrets to OpenAI; OpenAI denies it.** | Item | Detail | |---|---| | Plaintiff | Apple | | Defendants | OpenAI, io Products, Chang Liu, Tang Tan | | Filed | July 2026 | | Issue | Whether ex-Apple staff brought confidential material to OpenAI's device work | | Judge | Edward Davila |
- Apple OpenAI preliminary injunction outcome
- **No formal order yet; OpenAI made a voluntary commitment the judge can enforce.** | Date | Event | |---|---| | Oct 13 | Much of Apple's expedited discovery granted (interview materials, private messages) | | Oct 14 | Judge: injunction 'highly likely' | | Oct 14 | OpenAI agrees to stop using disputed info; forensic images from 14 employees | | TBD | Formal injunction ruling, trial date |
- OpenAI accuses Apple employee of taking files
- **OpenAI says an ex-employee who returned to Apple took 100+ confidential hardware files.** | Item | OpenAI claim | Apple | |---|---|---| | When | June 2, last day at OpenAI | Denies | | What | 100+ confidential files on unreleased hardware | Denies | | Also | Presented OpenAI product plans to senior Apple executives | Denies |
The AI rivalry has moved from benchmarks to people and files. Apple's trade-secret suit against OpenAI cleared its first hurdle on October 14. Judge Edward Davila said he was "highly likely" to grant Apple's request for a preliminary injunction, and OpenAI stepped back before he ruled: it agreed not to use the information Apple says was taken while the case runs, and to collect forensic images of devices from 14 employees that may hold it. The same day, OpenAI fired back with an accusation of its own.
1. The case at a glance
| Item | Detail |
|---|---|
| Plaintiff | Apple |
| Defendants | OpenAI; io Products (OpenAI's hardware unit); ex-Apple staff Chang Liu and Tang Tan |
| Filed | July 2026 |
| Apple's claim | Former employees took confidential information to OpenAI in a scheme "at every level" |
| OpenAI | Denies |
| Judge | Edward Davila |
OpenAI acquired io, the device startup founded by former Apple design chief Jony Ive, to build its own AI hardware. Several Apple hardware engineers followed; Apple argues trade secrets went with them.
2. What happened on October 13-14
| Date | Party | Event |
|---|---|---|
| Oct 13 | Court | Grants much of Apple's expedited discovery: OpenAI interview materials, private messages between named individuals |
| Oct 13 | Court | Not everything — the judge called inspecting every device and repository a "huge ask" |
| Oct 14 | Court | Judge says an injunction is "highly likely" |
| Oct 14 | OpenAI | Voluntary pledge: stop using disputed info; forensic images from 14 employees; enforceable with sanctions |
| Oct 14 | Apple | Counsel John M. Desmarais says inspections will be limited to a small group |
| Oct 14 | OpenAI | Files motion alleging an ex-employee took 100+ files back to Apple |
| Oct 14 | Apple | Denies |
A preliminary injunction is a temporary order to prevent harm before a final judgment. By committing voluntarily, OpenAI gets a similar practical outcome without a court order on the record saying it was restrained.
3. OpenAI's counter-claim
| Item | OpenAI's allegation |
|---|---|
| Who | A former employee who left OpenAI for Apple (unnamed) |
| When | June 2, 2026, the person's last day at OpenAI |
| What | 100+ confidential files about unreleased hardware sent to personal accounts |
| Plus | Presented OpenAI product plans to senior Apple executives, including its VP of operations in Asia |
| Apple | Denies |
The point is that talent flows both ways. The dispute may widen from "who stole first" to "how much did each side take".
4. Trade-secret basics
| Question | Answer |
|---|---|
| Trade secret vs patent? | A patent is public in exchange for exclusivity; a trade secret is protected only while kept secret |
| Can ex-employees use what they know? | General skills, yes; specific documents, designs and data, no |
| What is a forensic image? | A bit-for-bit copy of a storage device, recovering deleted files to check for exfiltration |
| Similar AI cases? | xAI sued OpenAI over trade secrets; the suit was dismissed for now at first instance |
Copying capability doesn't only happen by hiring people; mining a model's outputs is covered in "What is a distillation attack".
5. What remains open
- Formal injunction: whether one is still needed, and when.
- Trial date: not reported.
- Both sides' claims: neither Apple's allegation nor OpenAI's counter-claim has been found true by the court.
Sources
- 9to5Mac — OpenAI agrees not to use alleged Apple trade secrets amid ongoing lawsuit
- TechCrunch — Judge orders OpenAI to turn over hiring records in Apple trade secrets case
- Gizmodo — OpenAI Turns the Tables on Apple in Legal Fight Over Trade Secrets
- Washington Examiner — Apple disputes OpenAI accusation in case over trade secret theft
- CNBC — Apple sues OpenAI alleging trade secret theft