The trade-secret fight between Apple and OpenAI just gained another twist. On 14 October, in a new filing in the Northern District of California (San Jose), OpenAI alleged that a former employee who left OpenAI for Apple had, on their last day, sent more than 100 confidential files relating to at least one unreleased device to personal accounts, and later presented the material to senior Apple executives.
## A "mirror-image" case
The twist is that Apple sued first.
On 10 July 2026, Apple sued former employees Chang Liu and Tang Yew Tan, along with OpenAI and its hardware unit io Products, in the same court, accusing a group of ex-Apple engineers who moved to OpenAI of systematically taking Apple's hardware secrets and helping OpenAI build hardware. OpenAI denied it. Now OpenAI makes the reverse claim: that someone leaving OpenAI for Apple carried OpenAI's secrets the other way.
The case has, in effect, become two AI-hardware rivals accusing each other of acquiring one another's trade secrets through the movement of talent.
What OpenAI fears
In its filing, OpenAI says it is concerned that its trade secrets, confidential information and not-yet-public product development may now be circulating inside Apple, and could affect Apple's own AI product work. The employee is said to have worked at OpenAI for about six months and to have sent the files on their last day (2 June) before presenting to Apple executives, including a vice-president of operations in Asia. OpenAI asked the court for leave to investigate and, if warranted, bring counterclaims.
Apple's response, and where the case stands
Apple says it has policies to stop new hires from using a former employer's confidential information and that it has found no evidence supporting OpenAI's allegations. Procedurally, on 13 October the court granted Apple limited expedited discovery, letting it obtain some relevant files early; the case remains at an early stage of discovery and motions.
J&C recommends treating this cross-accusation as a reminder that trade-secret risk clusters at the handover points of talent movement. Whether taking on or losing people in key roles, companies should get the basics done in advance — device and account audits at onboarding and exit, written notice of confidentiality and non-compete duties, and measures to wall off anyone who might arrive carrying a previous employer's secrets — because once litigation starts, the fight over expedited discovery and its scope often arrives earlier, and matters more, than the final judgment.
Source: www.govinfo.gov | www.reuters.com
