Apple seeks preliminary injunction in OpenAI trade secrets case

• Apple is seeking expedited discovery and depositions of former senior system electrical engineer Chang Liu, former VP of product design Tang Yew Tan, and other OpenAI employees with Apple backgrounds
• The lawsuit represents escalating tension over future AI devices that could bypass traditional apps and operating systems, potentially threatening iPhone sales as OpenAI reportedly develops its own hardware
• OpenAI publicly refuted the allegations in a blog post, stating they 'do not have, nor want, any of their trade secrets'

Summary

Apple has filed for a preliminary injunction against OpenAI and two former Apple employees, seeking to prevent them from accessing or using alleged confidential trade secrets. The motion, filed Monday in the U.S. District Court for the Northern District of California, represents an escalation in Apple's lawsuit against OpenAI filed last month.

Key Parties:

• Former Apple employees: Chang Liu (former senior system electrical engineer) and Tang Yew Tan (former vice president of product design for iPhone and Apple Watch), both now working at OpenAI
• Defendants: OpenAI and io Products (OpenAI's commercial arm)

Core Allegations:

Apple claims the former employees misappropriated trade secrets to support OpenAI's expansion into consumer hardware. The company argues it will suffer "irreparable harm" without the injunction and has requested expedited discovery, including document production and depositions from the two defendants plus other current and former Apple employees now at OpenAI.

Market Implications:

The lawsuit highlights intensifying competition over AI-powered consumer devices that could bypass traditional operating systems and apps, potentially threatening iPhone sales. Industry analysts believe OpenAI is developing its own phone or similar device, which could redirect consumer attention away from Apple's flagship product.

OpenAI Response:

OpenAI strongly denied the allegations in a Monday blog post, stating the injunction request is "based on false information" and asserting the company doesn't possess or want Apple's trade secrets.

This legal battle follows OpenAI's recent successful defense against a challenge from Elon Musk's xAI, underscoring the competitive tensions in the AI hardware space.