Apple has reportedly expanded its legal campaign against OpenAI by sending preservation letters to around 40 former Apple employees who now work at the artificial intelligence company. The move is part of Apple’s broader trade secrets lawsuit, in which it alleges that confidential hardware information may have been improperly taken to support OpenAI’s growing consumer hardware ambitions.
The letters instruct recipients to preserve documents, communications, and other potentially relevant evidence, while also requesting meetings with Apple’s legal team. The latest step signals that Apple is widening its investigation beyond the individuals named in its original lawsuit and could seek evidence from a much larger group of former employees.
Apple Widens Trade Secrets Investigation
According to reports, Apple has sent legal preservation notices to approximately 40 former employees, roughly 10% of the estimated 400 ex-Apple staff now employed by OpenAI.
The letters require recipients to:
- Preserve documents and electronic communications.
- Retain any records potentially relevant to the lawsuit.
- Participate in meetings with Apple’s lawyers if requested.
Legal preservation letters are commonly used to prevent the destruction of evidence before or during litigation.
Key Developments
| Item | Details |
|---|---|
| Company issuing letters | Apple |
| Recipients | Around 40 former Apple employees now at OpenAI |
| Purpose | Preserve evidence related to trade secrets lawsuit |
| Legal action | Broader investigation into alleged IP theft |
Background: Apple’s Lawsuit Against OpenAI
The legal letters follow Apple’s lawsuit filed in the U.S. District Court for the Northern District of California against OpenAI and two former Apple employees.
Apple alleges that:
- Former employees misappropriated confidential hardware information.
- Proprietary product designs and manufacturing processes were improperly accessed.
- Trade secrets benefited OpenAI’s hardware development efforts.
- Recruitment practices encouraged the sharing of confidential information.
Among those named are former Apple executives Tang Tan, now OpenAI’s Chief Hardware Officer, and Chang Liu, a former Apple engineer. Apple claims the alleged misconduct extends beyond these individuals.
Apple’s Allegations
| Allegation | Apple’s Claim |
|---|---|
| Trade secret theft | Confidential hardware information was taken |
| Recruitment | Former employees were encouraged to share proprietary knowledge |
| Hardware development | Information allegedly benefited OpenAI’s device efforts |
| Scope | Apple believes more employees may possess relevant evidence |
OpenAI Denies Wrongdoing
OpenAI has rejected Apple’s allegations, stating that it has “no interest in other companies’ trade secrets” and remains focused on developing its own technologies.
The company has maintained that its hardware roadmap and research are based on independent innovation rather than proprietary information from competitors. The allegations remain unproven, and the case will ultimately be decided through the legal process.
Potential Impact on OpenAI’s Hardware Plans
The dispute comes at a critical time for OpenAI as it expands beyond software into AI-powered consumer devices.
According to reports, OpenAI is developing a screenless, palm-sized AI device capable of interacting through voice and visual inputs. While the company reportedly does not expect to ship the product this year, the litigation could complicate development timelines, partnerships, and future commercialization efforts.
Potential Business Implications
| Area | Possible Impact |
|---|---|
| Hardware development | Increased legal scrutiny |
| Employee recruitment | Greater compliance requirements |
| Product launch | Potential delays or uncertainty |
| IPO prospects | Added legal risk for investors |
Why the Case Matters Beyond Silicon Valley
Lateral hiring between competitors is routine in technology, including in India’s product engineering and GCC hubs, where teams are frequently rebuilt by poaching from rival firms. What this case tests is where ordinary skill and experience end and protected confidential information begins, and how far a former employer can go in demanding evidence from staff who simply changed jobs. The practical takeaway for employers and employees alike is mundane but important: exit hygiene, clean device handover, and documented onboarding that keeps a new hire away from a previous employer’s material.
The stakes are commercial as well as legal. OpenAI’s move into hardware comes while its lead in consumer AI is under pressure, with rivals closing the gap in reports such as ChatGPT’s share narrowing to 58% as Gemini and Claude gain and Gemini overtaking ChatGPT in Instagram creator conversations. A protracted lawsuit is an unwelcome distraction in that context.
Looking Ahead
Apple’s decision to send legal preservation letters to dozens of former employees significantly expands what is already one of the most closely watched intellectual property disputes in the AI industry. By seeking evidence from a broader pool of former staff, Apple appears to be building a wider case that the alleged misuse of trade secrets extends beyond the individuals originally named in its lawsuit.
For OpenAI, the litigation adds another layer of legal complexity as it pushes into consumer hardware and prepares for future growth initiatives. While Apple maintains that confidential information was misappropriated, OpenAI continues to deny the allegations. The outcome of the case could influence how technology companies recruit talent, protect intellectual property, and compete in the rapidly evolving AI hardware market.
Frequently Asked Questions
Why is Apple suing OpenAI?
Apple filed a trade secrets suit in the U.S. District Court for the Northern District of California against OpenAI and two former Apple employees, alleging that confidential hardware information, product designs, and manufacturing processes were improperly taken and used to help OpenAI’s device efforts. OpenAI denies the allegations, which remain unproven.
What is a legal preservation letter?
It is a notice telling a person to retain documents, emails, and other records that may be relevant to litigation, so evidence is not deleted. Apple’s letters also ask recipients to meet its legal team. Receiving one does not by itself mean a person is accused of anything.
How many ex-Apple staff work at OpenAI?
An estimated 400 former Apple employees are now at OpenAI. Apple has sent preservation letters to about 40 of them, roughly 10% of that group, including people not named in the original complaint.
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