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AI Company Calls Injunction Request ‘False’ as Hardware Dispute Escalates
OpenAI has taken a strong stand against allegations put forth by tech giant Apple in a recent lawsuit. The lawsuit files claims that OpenAI, along with two of its employees, conspired to misappropriate trade secrets to advance in the competitive AI hardware market. The company has termed Apple’s claims as “careless, aggressive, and oddly personal,” and has vehemently denied any wrongdoing.
On July 10, Apple initiated the legal action, asserting that OpenAI, along with former Apple executives Chang Liu and Tang Yew Tan, engaged in actions that constituted a breach of contract and the misappropriation of trade secrets (see: OpenAI Hardware Biz Built with Apple Secrets, Apple Says).
Adding to the conflict, Apple filed a motion for preliminary injunction, impending a federal judge to limit OpenAI from “accessing, acquiring, using, or disclosing Apple confidential or trade secret information in any manner.” A hearing regarding this injunction is scheduled for October 1.
In the legal filings, Apple accused Tang and Liu of downloading proprietary information while at Apple, as well as encouraging current Apple employees to divulge more trade secrets during their job interviews with OpenAI.
Contrary to Apple’s allegations, OpenAI has publicly refuted these claims through a blog post where it emphasized that its practices do not incorporate, nor do they desire, any of Apple’s trade secrets. The company stated, “Apple’s request for a preliminary injunction is both based on false information and completely unnecessary.”
The lawsuit emerges amid a broader context of competition in the realm of AI-driven consumer devices. While Apple has established itself as a leading provider in the consumer hardware sector, it has recently been criticized for lagging in AI development, despite being the pioneer of technology like the voice assistant Siri. In contrast, OpenAI has primarily been recognized as a software-focused enterprise.
In recent developments, OpenAI announced a strategic partnership with io Products, founded by Jony Ive, a notable designer known for his contributions to the iPhone, iPad, and the colorful range of iMacs. This partnership, revealed in May 2025, aimed to develop a line of AI-powered hardware products. OpenAI later acquired io Products in July 2025, which brought Tang, a former Apple employee and co-founder of io Products, into the organization.
Further fueling the conflict, Apple claimed that Tang utilized internal Apple project codenames to coax trade secrets from potential job candidates and circulated Apple’s internal departure protocols to aid recruits in avoiding detection. Additionally, the lawsuit accused Chang of downloading a significant volume of technical files from Apple’s cloud storage when he was employed at OpenAI. After raising its concerns, Apple asserted that it did not receive any meaningful responses from OpenAI.
In its defense, OpenAI asserted that Apple never brought up these alleged issues in prior communications. The company insisted that it did respond to Apple’s concerns, clarifying that there had been a misunderstanding by Apple’s legal team who confused the last names of two Asian employees at OpenAI. The AI firm further contested Apple’s claim of having discussions with OpenAI’s general counsel, stating that those discussions never occurred as Apple now acknowledges. OpenAI insisted that representatives from Apple informed them they were in the process of addressing any trade secret concerns.
OpenAI’s account suggested that the tech giant’s employees actively sought Chang’s assistance in locating information related to the internal account in question, arguing that it was Apple’s management that failed to adequately regulate permissions for access to the information. Additionally, OpenAI positioned Tang as someone who has consistently conveyed the message to his team that their operations must remain free from any confidential information from third-party companies.
The dispute continues to unfold as OpenAI has recently launched its inaugural hardware product, a Stream Deck-like keyboard named Codex Micro, designed for accessing AI agents. Developed in collaboration with Work Louder, a Montreal-based company, this release marks OpenAI’s entry into the hardware market. However, the specifics surrounding the future io AI device remain undisclosed.