OpenAI Alleges Former Employee Shared Unreleased Product Details With Apple
OpenAI has accused a former employee who departed for Apple of transferring more than 100 files about an unreleased product to a personal account, then presenting details of that product to senior Apple executives, according to a new filing in the legal battle between the two companies.
The allegation, submitted in federal court, marks the latest escalation in a dispute that began in July when Apple sued OpenAI, claiming the artificial intelligence company improperly recruited former Apple hardware engineers and obtained trade secrets related to device development. OpenAI has countered that Apple's claims stem from lax data security and poor offboarding practices at the Cupertino-based company.
In a separate development, U.S. District Judge Edward Davila in the Northern District of California partially granted Apple's request for expedited discovery on Oct. 13, ordering OpenAI to produce forensic images of devices, materials related to interviews of former Apple candidates, and LINE messenger chat logs within 14 days. The court cited a risk that evidence could be destroyed.
The judge specifically referenced communications between Chang Liu and Elyssa Feng, both of whom left Apple for OpenAI. Feng took over most of Liu's responsibilities after his departure and remained in contact with him before also joining OpenAI. Davila agreed with Apple's argument that trade secrets could become so deeply entangled in OpenAI's hardware products or research and development activities that the harm would be irreversible.
Depositions Ordered
The court also directed Tang Yew Tan, OpenAI's chief hardware officer and a former Apple employee, along with Liu and Feng, to submit to early depositions within 30 days. However, Davila rejected Apple's request for expedited discovery of internal documents related to hardware R&D.
He also found Apple's use of the term "Apple-derived information" too vague, ordering the company to submit a specific definition within five days.
The new OpenAI filing adds a detailed accusation to the proceedings: the former employee who joined Apple allegedly sent more than 100 files about an unreleased product to a personal account before leaving, then made a presentation about that product to Apple's senior leadership. OpenAI did not identify the employee by name in the filing.
The dispute highlights the intensifying competition between two of the most valuable technology companies as they race to develop AI-powered hardware. Apple has historically kept its device development tightly guarded, while OpenAI has been expanding from software into physical products, hiring hardware engineers to support that push.
Legal and Competitive Stakes
The case could have significant implications for both companies. For Apple, it represents an effort to protect its hardware development pipeline at a time when AI integration is becoming central to its product strategy. For OpenAI, the litigation threatens to complicate its recruitment of top hardware talent and could expose internal practices around how it handles information brought by new hires from competitors.
The expedited discovery order suggests the court views the risk of evidence loss as credible, which could pressure OpenAI to move quickly in producing materials. The 14-day deadline for forensic images and chat logs is notably aggressive for a case of this complexity.
Apple's lawsuit, filed in July, alleged that OpenAI systematically recruited former Apple hardware engineers and that trade secrets walked out the door with them. OpenAI has framed the dispute as a misunderstanding rooted in Apple's own security shortcomings, arguing that the information at issue was either not secret or was properly handled.
The presentation to senior Apple leadership alleged in the new filing, if proven, would undercut OpenAI's position by suggesting that material from OpenAI flowed to Apple rather than only the reverse. That would complicate the narrative OpenAI has presented in its defense.
Neither company immediately responded to requests for comment on the latest filing. The case is being closely watched across the technology industry, where employee mobility between AI companies and established hardware makers has become a flashpoint for trade secret litigation.
Note: The deposition and discovery timeline was reported by Yonhap News Agency. The allegation about files transferred to a personal account and the presentation to Apple leadership comes from a new OpenAI court filing.