Apple Expands Lawsuit Against OpenAI, Accuses 40 Former Employees of Leaks

Apple has sent legal preservation letters to approximately 40 former employees, requiring them to preserve any documents and communications that may be relevant to the lawsuit. This step indicates that Apple believes the scope of leaks may extend beyond the two defendants named in the initial lawsuit.

Core Facts of the Lawsuit

In July 2026, Apple sued OpenAI and two former employees in California federal court. The defendants include former vice president of iPhone product design Tang Tan and former senior electrical engineer Liu Chang. Apple accuses the two of bringing design information for the iPhone, AirPods, and Apple Watch to OpenAI, which is developing consumer AI hardware. Apple claims that OpenAI guided employees to circumvent scrutiny during recruitment and has requested a preliminary injunction to prevent the use of the information.

Apple also noted that more than 400 former Apple employees currently work at OpenAI, accounting for about 10% of the size of some OpenAI teams. The preservation letters target approximately 40 of them, with the aim of preventing evidence destruction and sending a warning signal.

The Actual Mechanics of Talent Flow

AI hardware development requires specific engineering experience. Tang Tan was responsible for the product design of the iPhone, AirPods, and Apple Watch, while Liu Chang participated in sensitive hardware development projects. These backgrounds directly correspond to OpenAI's planned portable AI device, which includes cameras and sensors and aims to provide interaction methods that go beyond traditional interfaces.

The pattern uncovered by Apple's investigation shows that some employees departed with details that went beyond publicly available knowledge. OpenAI's response claims the lawsuit is based on incorrect information and that the company has no interest in Apple's trade secrets. However, if the hardware project is restricted by an injunction, its progress will be directly affected.

Deeper Drivers Under Competitive Pressure

Apple dominates the consumer electronics space, but its AI feature integration has lagged behind other companies. OpenAI has advanced its hardware plans through the acquisition of io Products, a company co-founded by Tang Tan and former Apple chief design officer Jony Ive. Both sides are competing for engineers with consumer hardware experience from the same talent pool, which has blurred information boundaries.

This flow is not an isolated event. AI model training depends on large-scale data and engineering optimization, while hardware implementation requires constraining models to low-power chips and sensor fusion. Engineers with an Apple background can shorten this path, making them high-value targets. Apple's choice of legal action rather than simply engaging in a bidding war indicates that it assesses the losses from internal information leaks as exceeding the cost of talent attrition itself.

Apple says that "OpenAI's emerging hardware business is built on the most unstable foundation, and its core has been corroded by illegally misappropriated trade secrets."

OpenAI, for its part, emphasizes that it is focused on building innovative technology that empowers users worldwide and has no intention of acquiring other companies' secrets.

Industry Impact Assessment

If the lawsuit results in a preliminary injunction, it will restrict OpenAI's hardware team from using specific knowledge, forcing it to re-hire or adjust its design direction. In the long term, this will raise the barrier to entry for AI hardware, pushing new entrants to rely more on internal accumulation rather than external talent transfer.

For the industry as a whole, similar cases will prompt companies to strengthen exit review processes and information classification management. Employee mobility remains a source of innovation, but when mobility involves direct product design details, legal risk rises. Apple's use of preservation letters as an early intervention tool indicates that its strategy is shifting from passive defense to proactive monitoring.

Independent Assessment

Apple's move to expand the scope of the lawsuit is fundamentally about protecting its established advantages in consumer hardware, rather than targeting OpenAI's model capabilities per se. If OpenAI's hardware efforts cannot advance independently under information isolation, its progress will fall behind expectations. The conflict between the two sides will not end in the short term, but it will push AI hardware development toward more standardized internal R&D models.