Apple Accuses OpenAI of Trade Secrets Theft in Lawsuit Over Alleged Employee Poaching and Data Leaks
By admin | Jul 19, 2026 | 3 min read
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Apple recently filed a trade secrets lawsuit against OpenAI, alleging a systematic effort by the AI firm to solicit confidential information from current and former Apple employees. OpenAI responded by stating it is “not aware of any evidence that this complaint has merit.” Sean suggested that even if the court doesn’t grant an injunction or restraining order against OpenAI’s activities, the lawsuit could naturally cause delays in their projects. “Which I’m sure was probably part of the reasoning behind Apple doing this. They don’t do this stuff willy nilly,” he added.
Given the stakes involved, the question is whether OpenAI will rush to settle or take a page from its recent courtroom victory against Elon Musk, proving it can handle the cost and embarrassment of a trial. Kirsten predicts the latter. Below is an edited excerpt from their conversation, condensed for clarity.
**Kirsten Korosec:** Sean, how do you feel about Sam Altman listening to you through a device that might be in your pocket?
**Sean O’Kane:** I’m good with it. Maybe that’s predictable, but I’m good. No thanks. We’ll get into it, but this is supposedly the first product OpenAI has been working on in its hardware division alongside Jony Ive and team. They’ve been very secretive ever since that odd video they released last year, showing them sitting at a coffee shop or bar in San Francisco, vaguely discussing hardware and legacy devices like laptops and phones. If this is their direction, all power to those who want a device always listening to them—it’s just not for me.
**Anthony Ha:** We also need to remember that, depending on how mobile such a device is, it’s not just listening to you—it’s listening to everyone around you. I might be okay with it (though I’m not), but if we met in person at Disrupt, it could be recording all of us. Social norms will need to be renegotiated if these devices become common. I think we should criticize people who record others without consent.
**Kirsten:** I bring up this long-speculated device, which we’ll see in its official form eventually, but it’s important in the context of Apple’s lawsuit filed last Friday. It was the biggest news of the week—a trade secrets case with some wild allegations, and we should emphasize these are just allegations in Apple’s complaint. Apple accuses OpenAI of a pattern of misconduct at the highest levels, specifically targeting former Apple employees now at OpenAI, and names chief hardware officer Tang Tan. This matters because Apple claims OpenAI stole trade secrets, potentially for a competing hardware product. I’m not sure we should debate the lawsuit’s merits without full discovery, but what are your initial impressions, aside from it being entertaining?
**Sean:** Two things. First, this poses a significant risk to whatever OpenAI is working on. Even without court-ordered injunctive relief, it could naturally cause delays, which is likely part of Apple’s strategy—they don’t act recklessly. Second, we know OpenAI has confidentially filed for an IPO, possibly by year-end or early next year, based on Sam Altman’s cautious comments. This raises many questions. On one hand, their business is probably mostly software now, not hardware. But as they pitch bankers and investors on their addressable market, if a big chunk relies on a potential hardware division, this lawsuit could be a huge risk, altering how the IPO is priced. That’s where my focus is.
**Anthony:** One allegation Apple likely has solid numbers on is that over 400 Apple employees now work at OpenAI. Both companies are large—with tens of thousands of employees—so as a percentage, it’s not huge. But that’s still a significant talent drain. Also, related to Sean’s point about the IPO, how much brand damage did OpenAI take from its previous trial? It basically won, but there was embarrassing dirty laundry in the testimony. Will they avoid another trial, or did they learn they can survive it?
**Kirsten:** I fully predict the latter.
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