San Jose, October 15, 2026: OpenAI has accused a former employee who later joined Apple of taking more than 100 confidential files related to an unreleased OpenAI device and transferring them to a personal account. The company alleges that information about the product was subsequently presented to senior Apple executives, escalating a growing trade-secret dispute between the two technology giants.
Apple has denied wrongdoing, saying an internal review found no evidence that OpenAI’s confidential information entered its systems or products.
OpenAI Alleges More Than 100 Confidential Files Were Taken
In a filing before a US federal court in San Jose, OpenAI alleged that the former employee transferred more than 100 files containing information about an unreleased product.
The material reportedly included prototype images, supplier details, engineering designs, hardware-component reports and product standards. OpenAI argues that the files contained sensitive information related to its confidential hardware-development efforts.
Former Employee Allegedly Presented Information to Apple Executives
OpenAI claims that the employee joined Apple after leaving the company and later presented information about the unreleased product to senior Apple executives.
The allegations have raised questions about whether confidential OpenAI information could have influenced Apple’s own AI hardware development. However, the claims have not been proven in court.
Dispute Centres on Confidential AI Hardware Development
Both companies are investing in AI-powered consumer devices, intensifying competition beyond their established software and services businesses.
OpenAI’s court filing links the allegedly transferred material to confidential hardware projects, while Apple continues to expand its AI capabilities across its consumer-device ecosystem.
OpenAI Questions Whether Its Information Influenced Apple’s HomeView Product
OpenAI has raised concerns about whether its confidential material may have influenced Apple’s recently launched HomeView product.
The allegations do not establish that Apple used OpenAI’s trade secrets to develop the device. Apple has rejected the suggestion that its products or systems incorporated the disputed information.
Apple Denies Misusing Confidential Information
Apple says it has policies designed to prevent employees from bringing or using confidential information belonging to former employers.
The company maintains that its internal review found no evidence that OpenAI’s confidential data had been incorporated into Apple’s systems or products.
Dispute Follows Apple’s Earlier Trade-Secret Lawsuit
The latest allegations form part of a wider legal battle between the two companies.
Earlier in 2026, Apple sued OpenAI, accusing the ChatGPT maker and former Apple employees of improperly obtaining Apple trade secrets while developing OpenAI’s hardware division. OpenAI has disputed Apple’s claims.
Apple Previously Accused Former Employees of Taking Files to OpenAI
Apple’s original lawsuit included allegations involving former engineer Chang Liu, whom Apple accused of retaining access to its systems after leaving the company and downloading confidential hardware-related files while working at OpenAI.
Apple alleged that Liu exploited an authentication vulnerability that allowed continued access to internal network storage. These claims remain part of the broader dispute and must be distinguished from proven findings.
Court Permits Limited Early Discovery
US District Judge Edward Davila has allowed limited early discovery in the case.
The process includes access to certain digital records and depositions involving former Apple employees who moved to OpenAI. The proceedings are intended to help establish how confidential information may have moved between the companies.
Both Companies Accuse Each Other of Mishandling Trade Secrets
The dispute has developed into a two-way confrontation over confidential information.
Apple alleges that OpenAI benefited from sensitive Apple hardware information, while OpenAI now claims that one of its former employees carried information about an unreleased product in the opposite direction.
Neither side’s allegations should be treated as established wrongdoing unless supported by findings through the legal process.
AI Hardware Competition Is Intensifying
OpenAI has been expanding its hardware operations following its acquisition of io, the design company associated with former Apple design chief Jony Ive.
Apple, meanwhile, continues developing AI capabilities across its consumer products. The growing overlap between their ambitions has increased the importance of protecting proprietary designs, supplier information and engineering work.
Trial Expected in 2027
The dispute is currently expected to go to trial by October 2027. OpenAI has indicated in court filings that it could be ready as early as June 2027.
The timeline suggests that the legal battle could continue for months as both companies seek to establish their claims and defend their handling of confidential information.
Case Could Have Implications for Future AI Devices
The outcome could extend beyond financial damages. If trade-secret misappropriation is established, the court could consider remedies that may affect the use of disputed information and aspects of future product development.
The case also highlights the challenges technology companies face when engineers, designers and other employees move between competing firms. As AI development increasingly extends into physical devices, protecting confidential information has become a significant issue across the technology industry.
Source – Reuters, The Verge, TechCrunch
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