Apple Sues OpenAI, Alleging Trade Secret Theft and Targeting AI Hardware Plans

Apple sued ChatGPT-maker OpenAI last week, alleging theft of trade secrets. While the Sam Altman-led company has denied the allegations, the lawsuit could do more than challenge the company's hiring practices. It could also delay or even disrupt OpenAI's plans to launch its first AI hardware device, according to an analysis shared by AI commentator Shruti Mishra on X (formerly Twitter). In a detailed post, Mishra argued that Apple's legal action is aimed at the heart of OpenAI's hardware programme rather than individual employees. “Apple called OpenAI's hardware business "rotten to its core." That phrase is doing legal work, not PR work. It is laying the foundation for an argument that no injunction can be narrow enough, because the contamination runs through the entire program,” Mishra wrote.

Apple's lawsuit targets OpenAI's hardware programme

In the post, Shruti Mishra wrote that the lawsuit is "not really about a stolen laptop or some files downloaded from a cloud drive." Instead, she argued: "Apple didn't file a lawsuit. It filed a kill switch." According to her, Apple is trying to stop OpenAI's hardware device from reaching the market. She pointed to Tang Tan, OpenAI's chief hardware officer and a former Apple executive, who is named as a defendant in the lawsuit. Mishra wrote: “The complaint isn't really about a stolen laptop or some files downloaded from a cloud drive. It's about one thing: stopping OpenAI's hardware device from ever reaching a shelf.” She also noted that Apple has alleged Tan encouraged job candidates who still worked at Apple to bring company hardware and information to interviews. According to Apple's complaint, Tan allegedly asked candidates to bring "actual parts" for "show and tell", including batteries, logic boards and other components. The iPhone maker also alleges Tan used Apple's internal project codenames during interviews. Another defendant, Chang Liu, is accused in the lawsuit of continuing to access Apple's cloud storage after leaving the company and downloading confidential documents while working at OpenAI.

Why Apple's injunction could matter

Mishra argued that the most significant part of Apple's lawsuit is not the allegations themselves, but the legal remedy Apple is seeking. "The most important part is what Apple asked the court for," she wrote. According to her post, Apple is seeking a preliminary injunction that could prevent OpenAI from advancing its hardware programme while the case is being heard. She added: "If granted, OpenAI cannot advance its hardware program while the litigation runs." Mishra also claimed that because Tang Tan leads OpenAI's hardware efforts and is a named defendant, every design decision could face legal scrutiny. She further noted that OpenAI had previously indicated in a separate court filing that its hardware device was not expected before February 2027. According to Mishra, any injunction could push that timeline back further. “The most important part is what Apple asked the court for. It is seeking a preliminary injunction, and says it will move promptly. If granted, OpenAI cannot advance its hardware program while the litigation runs. The man designing the device is a named defendant. Every design decision in that program now carries a legal cloud that requires affirmative evidence to dispel,” Mishra stated in the post.