Apple has intensified its trade secrets lawsuit against OpenAI by sending preservation letters to approximately 40 former employees who now work at the AI company. The letters instruct recipients to retain all relevant documents and communications, and request meetings with Apple’s legal team. This move follows Apple’s initial lawsuit filed on July 10 in the Northern District of California, which accuses OpenAI, io Products, and two former Apple employees of using confidential hardware information. OpenAI has denied any interest in rivals’ trade secrets, and the claims remain untested in court.
Apple Widens Its Search for Evidence
Apple named former employees Chang Liu and Tang Yew Tan in the complaint. Tan serves as OpenAI’s chief hardware officer after years at Apple, while Liu worked as a senior electrical engineer at Apple. The complaint alleges Liu kept a company laptop and later accessed Apple’s network through an authentication flaw, downloading many confidential internal Apple hardware files. It also claims Tan emailed himself supplier details and internal reports before leaving Apple. Both claims remain allegations. Apple further says Tan encouraged Apple employees interviewing at OpenAI to bring physical parts for “show and tell” sessions. One candidate allegedly said, “I didn’t even know we could take those from the office.” OpenAI has not publicly answered each claim. The preservation letters show Apple wants records from a wider group than the two employees named in court. More than 400 former Apple workers now work at OpenAI, according to Apple’s filing. Employee movement alone does not prove trade secret theft under California law.
Hardware Plans Face Court Scrutiny
OpenAI moved deeper into consumer hardware after buying io Products, a company linked to former Apple design chief Jony Ive. Reuters valued the transaction at $6.5 billion. Apple says OpenAI used hiring practices and supplier contacts to speed up its hardware work. Apple also alleges OpenAI approached Apple suppliers for confidential production information. One claim involves a metal-finishing method that Apple describes as secret. Apple says a supplier believed OpenAI had permission to use the process. OpenAI disputes the accusation. The court could examine emails, interview records, product files, and supplier communications during discovery. Apple may seek limits on technology that a judge finds connected to protected information. No court has ruled that OpenAI used Apple trade secrets. OpenAI said, “We have no interest in other companies’ trade secrets.” It added that the company focuses on building technology for users. The statement does not address the separate claims against Tan, Liu, or io Products.
OpenAI IPO Plans Meet New Legal Risk
Reports say OpenAI has considered a public listing in late 2026 or 2027. The company has not announced an IPO date. Previous statements from OpenAI said a listing was not its main focus. The Apple OpenAI lawsuit adds another item for banks and investors to review before any share sale. An IPO filing must describe material lawsuits, business risks, management matters, and possible costs. The case may also require OpenAI to explain whether its hardware plans rely on disputed information. A long discovery process could overlap with IPO preparations. It could expose internal messages, hiring records, and product development documents. However, the lawsuit does not automatically stop a listing, and Apple has not proved its claims. The dispute comes after Apple and OpenAI worked together to add ChatGPT access to Apple devices in 2024. Their relationship now includes cooperation and competition. The legal case will proceed separately from any reported IPO timetable.
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