Apple Targets OpenAI Employees Over Trade Secret Allegations

AAPL Apple has escalated its trade secret dispute with OpenAI by sending legal preservation letters to roughly 40 former employees who have since joined the AI startup. According to reports, the letters require the recipients to preserve relevant documentation that may be called upon in the ongoing lawsuit and to arrange to meet with Apple's lawyers . Apple's suit alleges that former executives, including Tang Tan and Chang Liu, directed the sharing of confidential information on unreleased Apple projects .

OpenAI has pushed back on the claims, with a spokesperson saying the company is "not aware of any evidence" supporting the suit and has "no interest in other companies' trade secrets." Even so, the dispute is shaping up as a high-stakes clash between two tech heavyweights, and reports suggest the overhang could complicate OpenAI's potential IPO plans.

The saga began when Apple filed suit earlier this month in the U.S. District Court for the Northern District of California, accusing OpenAI and io Products of misappropriating trade secrets . Apple's filing describes a months-long effort by former employees to hand over confidential details, and notes that more than 400 former Apple staff have joined OpenAI.

Now, by targeting former employees directly with preservation letters, Apple is signaling an aggressive posture to protect its intellectual property. The dispute is set to unfold over the coming weeks and months, with implications for AI hardware talent mobility across the industry.

Related Stocks

• GOOGL
• TPR
• MSFT