Apple alleges in federal court in San Jose that OpenAI, its io Products unit, and two former Apple employees misappropriated Apple’s trade secrets to build OpenAI’s first consumer device. At an October 14, 2026, hearing on OpenAI’s motion to dismiss and Apple’s preliminary injunction motion, Judge Davila said he was highly likely to grant the injunction. OpenAI then voluntarily agreed not to use Apple’s alleged trade secrets while the case proceeds.
Latest development Oct 14, 2026
On October 14, 2026, Judge Davila heard OpenAI’s motion to dismiss and Apple’s preliminary injunction motion and said he was highly likely to grant the injunction. OpenAI agreed not to use Apple’s alleged trade secrets while the case proceeds. The same day, OpenAI told the court a former employee who rejoined Apple had sent more than 100 confidential files to personal accounts. It sought time to investigate possible counterclaims.
Why it matters
Apple’s claims will test where recruiting a rival’s hardware engineers ends and trade secret misappropriation begins as AI companies build device teams from former Apple staff. An injunction could delay or derail OpenAI’s first consumer hardware product.
Background
On July 10, 2026, Apple Inc. sued OpenAI and two former Apple employees in the U.S. District Court for the Northern District of California. The defendants are OpenAI Foundation, OpenAI Group PBC, OpenAI’s hardware unit io Products, LLC, Tang Yew Tan (Tang Tan), and Chang Liu. Apple’s 41-page complaint pleads Defend Trade Secrets Act and breach-of-contract claims and alleges a coordinated scheme to misappropriate Apple trade secrets as OpenAI worked to build its first consumer device. Apple seeks an injunction barring use or disclosure of the material, return of Apple’s files, and evidence preservation. Those remedies target the device program OpenAI assembled through its roughly $6.5B acquisition of Jony Ive’s io startup in May 2025 (Ive is not a defendant).
Tan is a 24-year Apple veteran who was vice president of product design for iPhone and Apple Watch. Apple alleges that Tan, now OpenAI’s chief hardware officer, used Apple’s confidential project code names in recruiting and asked candidates to bring Apple hardware components to interviews. Apple also alleges that he solicited details of unannounced products and coached departing engineers on evading security procedures. It further alleges that Liu kept his Apple-issued laptop after joining OpenAI in 2026 and used it to download confidential technical specifications and engineering materials.
OpenAI responded publicly on July 14, 2026, that it is “not aware of any evidence that this complaint has merit,” and framed the dispute as an attack on employee mobility. On August 3, 2026, OpenAI published internal messages and emails that it says contradict Apple’s account. Apple moved for a preliminary injunction and expedited discovery on August 4, and the defendants moved to dismiss on August 6, arguing that Apple filed the case without adequate investigation. Apple opposed that motion on August 19, and OpenAI filed its reply on August 27, seeking dismissal with prejudice. Apple’s August 31 supplemental brief, citing forensics on a MacBook Liu returned, alleged he used a confidential Apple circuit schematic at OpenAI and discussed destroying evidence with a colleague.
Judge Edward J. Davila, to whom the case was reassigned in July 2026, moved the combined motions hearing to October 14 at a September 14, 2026, case management conference. On September 26, the defendants moved to strike two Apple expert declarations, arguing that Apple improperly used a reply brief to add new evidence, and Apple opposed on October 5. On October 13, he partially granted Apple’s expedited discovery motion, ordering production of recruitment interview materials and forensic device images and depositions of Liu, Tan, and Alyssa Peng. At the October 14 hearing, he said he was highly likely to grant the injunction, and OpenAI voluntarily agreed not to use Apple’s alleged trade secrets while the case proceeds. The same day, OpenAI alleged a former employee who rejoined Apple had sent over 100 confidential files about an unreleased device to personal accounts and sought time to explore counterclaims.
Timeline 17 events
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FilingOpenAI alleges returning employee took its confidential device files
OpenAI defendants told the court that a former OpenAI employee who rejoined Apple had sent more than 100 confidential files about an unreleased OpenAI device to personal accounts. They asked for a case schedule allowing investigation and possible counterclaims.
OpenAI Alleges Employee Who Rejoined Apple Took Unreleased Device FilesOpenAI agrees not to use alleged Apple trade secrets amid ongoing lawsuit
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HearingJudge Davila signals likely injunction and OpenAI agrees to pause use
At a combined hearing on OpenAI’s motion to dismiss and Apple’s preliminary injunction motion, Judge Davila said he was highly likely to grant the injunction. OpenAI then voluntarily agreed not to use Apple’s alleged trade secrets while the case proceeds.
OpenAI Vows Not to Use Trade Secrets Allegedly Taken From Apple - BloombergTechmeme: OpenAI agrees not to use trade secrets
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OrderDavila partially grants Apple’s expedited discovery motion
Judge Davila granted in part, denied in part, and deferred in part Apple’s motion, citing a risk that evidence could be destroyed. He ordered production of recruitment interview materials and forensic device images and required depositions of Chang Liu, Alyssa Peng, and Tang Yew Tan.
Apple Wins Early Access to OpenAI Files in Trade Secrets SuitApple wins early access to OpenAI documents and employee testimony - 9to5MacJudge Grants Apple Expedited Discovery in OpenAI Trade Secrets Case
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OrderApple opposes OpenAI’s motion to strike evidence
Apple argued that OpenAI and the other defendants had themselves introduced new arguments and testimony beyond what court rules allow. It urged the court to consider the full record.
Apple accuses OpenAI of improperly adding new arguments to trade secrets caseApple says OpenAI's bid to strike its new evidence is an improper nine-page attempt to reargue Apple's injunction requestApple vs OpenAI: Trade Secrets Fight Intensifies Before October 14 Hearing
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HearingJudge Davila sets hearing on dismissal and injunction motions
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OrderOpenAI moves to strike Apple’s expert declarations
OpenAI and its co-defendants asked the court to strike two expert declarations Apple submitted, arguing Apple improperly used a reply brief to add new evidence.
OpenAI accuses Apple of improperly adding new evidence to lawsuitOpenAI Asks Judge To Strike New Apple Evidence In Trade Secrets FightOpenAI asks court to strike Apple's new evidence in trade secrets case
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HearingJudge Davila moves combined motions hearing from October 1 to October 14
At a case management conference, Apple’s counsel argued the court should compel discovery into OpenAI’s unreleased hardware product before it ships. Counsel said trade secrets embedded in a device cannot later be removed.
X Corp. and SpaceXAI drop antitrust claims against Apple, keep suing OpenAIApple Seeks OpenAI’s Upcoming Device in Trade Secrets LawsuitApple Wants to Know What's Hiding in OpenAI's Secret Unreleased Device, and Who at the Company Had Access to It.
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FilingApple files supplemental brief with MacBook forensic evidence
Apple alleged that initial forensic analysis of a MacBook returned by Chang Liu showed he downloaded and used a confidential Apple circuit schematic at OpenAI. It said Liu and a colleague discussed destroying evidence and sought expedited access to a Mac mini and other devices.
Apple reveals 'shocking evidence' from ex-employee's MacBook in OpenAI suitApple Says Former Engineer Used Stolen Trade Secrets at OpenAI, Taught AI Agent to Run ThemApple Accuses OpenAI of Destroying Evidence in Trade Secrets LawsuitApple adds more allegations to its trade secrets lawsuit against OpenAI
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FilingOpenAI files reply seeking dismissal with prejudice
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FilingApple opposes OpenAI’s motion to dismiss
Apple urged the court not to dismiss its trade secrets lawsuit. It reaffirmed its allegations of pervasive trade secret misappropriation against OpenAI and the individual defendants.
Apple hits back at OpenAI's bid to dismiss trade secret theft lawsuit, reaffirms pervasive trade secret misappropriationApple urges judge not to dismiss its trade secrets lawsuit against OpenAI
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FilingOpenAI moves to dismiss Apple’s trade secrets lawsuit
OpenAI argued that Apple filed the case without adequate investigation. It also pointed to Apple’s own security practices as undermining Apple’s claims.
OpenAI Asks Judge to Toss Apple's Trade Secrets LawsuitOpenAI asks for Apple's trade secrets lawsuit to be dismissed, says it was filed without 'adequate investigation'OpenAI says Apple's own security practices undermine its trade secrets case
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FilingApple moves for preliminary injunction and expedited discovery
Apple asked the court to bar OpenAI, Chang Liu, and Tang Yew Tan from accessing, acquiring, using, or disclosing its alleged trade secrets. It sought depositions of Liu, Tan, OpenAI employee Yu-Ting Peng, and an unnamed former Apple employee at OpenAI.
Apple seeks preliminary injunction against OpenAI in trade secrets caseApple moves for preliminary injunction in OpenAI trade secrets lawsuit
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OtherOpenAI publishes detailed rebuttal with internal chats and emails
OpenAI posted a blog post titled “Apple is getting this wrong” containing internal messages and emails that it said contradicted Apple’s account of events involving Chang Liu and Tang Tan.
OpenAI rebuts Apple trade secrets allegations in new response with receipts'Apple Is Getting This Wrong': OpenAI Alleges As It Releases Chats & Emails With iPhone Maker In Massive Legal War
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OtherOpenAI publicly rejects the allegations
OpenAI said it was “not aware of any evidence that this complaint has merit” and emphasized employee mobility.
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FilingApple files trade-secrets suit
Apple brought Defend Trade Secrets Act and breach-of-contract claims against OpenAI Foundation, OpenAI Group PBC, io Products, Tang Tan, and Chang Liu. It sought an injunction and return of its materials.
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OtherOpenAI acquires io for roughly $6.5B
Jony Ive’s hardware startup became the core of OpenAI’s consumer-device program.
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OtherTang Tan leaves Apple for Jony Ive’s io venture
Apple’s longtime vice president of product design for iPhone and Apple Watch left to lead hardware at the startup that became OpenAI’s device unit.
Experimental AI forecast
How it is madeWill the court enter a preliminary injunction or court-ordered stipulated injunction against OpenAI or the individual defendants by March 31, 2027?
- Court enters injunction against OpenAI60%
- Injunction motion withdrawn or mooted17%
- Still pending on March 31, 202713%
- Court denies Apple’s injunction5%
- Apple and OpenAI settle5%
- Resolves by
- Mar 31, 2027in 5 months
- Record confidence
- Medium
The most likely outcome is that the court enters a preliminary or stipulated injunction against OpenAI by March 31, 2027 (60%). At the October 14, 2026, hearing the court said it was highly likely to grant the injunction, and OpenAI agreed not to use the alleged trade secrets.
How it resolves. Resolves “Court enters injunction against OpenAI” if, by March 31, 2027, the docket shows a preliminary injunction or court-ordered stipulated injunction restricting any defendant’s use or disclosure of Apple’s alleged trade secrets. Resolves “Court denies Apple’s injunction” if the court denies the motion on the merits. Resolves “Injunction motion withdrawn or mooted” if Apple withdraws the motion, or the court terminates it as moot, because of OpenAI’s voluntary commitment, with no court-ordered injunction. Resolves “Apple and OpenAI settle” if the parties publicly announce or file a settlement resolving the case before any of these. Otherwise resolves “Still pending.”
Reasoning
Starting point. Contested preliminary injunction motions in federal Defend Trade Secrets Act cases involving departing employees, where the court has stated its tentative view at the hearing: Roughly 30% to 50% of contested DTSA preliminary injunction motions are granted at least in part. Grant rates rise sharply once a court announces a tentative grant and the defendant offers interim compliance.
Contested DTSA preliminary injunction motions are granted at least in part perhaps 30% to 50% of the time. This record sits well above that range. The court stated on October 14, 2026, that it was highly likely to grant the injunction, and it had already ordered expedited discovery on October 13 citing a risk of evidence destruction. OpenAI’s voluntary agreement not to use the alleged trade secrets is the main complication. Courts often convert such commitments into a stipulated order, which counts as an injunction here. But Apple could accept the commitment and withdraw the motion, or the court could find it moot, which is the leading alternative at 17%. A merits denial now looks unlikely. A full settlement this early is possible but unlikely, given OpenAI’s public rebuttal and its new allegations against a former employee who rejoined Apple. The pending motion to dismiss and motion to strike could delay a written order, which supports a modest pending share. Compared with the October 10 forecast on the same question, the court’s stated view at the hearing and OpenAI’s commitment moved the injunction outcome up 22 points and denial down 32 points.
Court stated at hearing it was highly likely to grant injunction · OpenAI’s voluntary commitment may be formalized or moot the motion · Liu laptop forensics and evidence-destruction risk cited in discovery order · Pending motion to dismiss and motion to strike may delay order · OpenAI’s possible counterclaims raise leverage but not settlement odds
Generated automatically by Claude Opus 5.5 on Oct 15, 2026 from this case’s record on this site, and published without editorial review. The probabilities are the model’s judgment, not measured frequencies, and they are scored publicly as cases resolve. Not legal or investment advice. How the forecasts are made
Disclosure: Anthropic, which makes the model that wrote this forecast, competes with or has commercial ties to a party to this case.