Apple tells judge OpenAI has only ‘a few bad apples’, not 400, and knows who they are

Illustration shows Apple, OpenAI logos and court gavel (Picture: Reuters)

Apple does not want to search the devices of every former employee who has moved to OpenAI. That was the message from the iPhone maker’s lawyer at a federal court hearing in San Jose, California, on Wednesday, the first big showdown in Apple’s trade secrets lawsuit against the ChatGPT maker.US District Judge Edward Davila said he was “highly likely” to side with Apple and grant an injunction against OpenAI. Before he could rule, OpenAI voluntarily agreed not to use any information Apple says its former staff took, for as long as the case runs. According to Bloomberg, the judge can enforce that promise, which also requires OpenAI to collect forensic images of 14 employees’ devices.

Apple narrows its OpenAI device inspection to a few ex-employees

Davila did not give Apple everything it wanted. He felt a proposed forensic inspection of every device and repository holding Apple trade secrets was too big an ask.Apple’s counsel John M. Desmarais said the company would only inspect a small group of employees who left for OpenAI. Hundreds of Apple staff have joined the AI company, but Desmarais told the judge OpenAI has “a few bad apples and know who they are.”The agreement spares OpenAI an outright loss in its first real courtroom test against Apple. The Cupertino company, meanwhile, gets most of what it was after: its proprietary information stays out of OpenAI’s product work.

A day earlier, Davila had ordered OpenAI to fast-track evidence, including device images and LINE messages between former Apple engineers Chang Liu and Alyssa Peng, who had discussed wiping their Apple-owned devices. Liu, Peng and OpenAI hardware chief Tang Yew Tan must also sit for early depositions.

OpenAI accuses a returning Apple engineer of taking its device files

OpenAI arrived at the hearing with allegations of its own. Hours earlier, it filed claims that an engineer who left Apple for OpenAI, then returned to Apple after about six months, sent more than 100 confidential files on at least one unreleased OpenAI device to personal accounts.The files allegedly included images of unreleased hardware, engineering and manufacturing data, and supplier details. Some went out on June 2, his last day at OpenAI. He also allegedly presented OpenAI’s product plans to senior Apple executives, including its vice president of operations in Asia.Apple says it has policies that stop new hires from using a former employer’s confidential information, and that it has found no evidence supporting OpenAI’s claims.

Reuters reported that in an October 12 letter, Apple’s lawyers noted the personal phone numbers OpenAI flagged do not match the one the engineer uses for Apple work. OpenAI wants time to investigate and may file counterclaims.

What the Apple vs OpenAI lawsuit means for OpenAI’s first device

Apple sued in July, accusing OpenAI, Tan and Liu of a coordinated effort to extract details on product design, manufacturing, components, testing and the supply chain from former Apple staff.

Tan spent over 24 years at Apple, where he was vice president of product design for iPhone and Apple Watch.OpenAI denies the charges and says Apple is trying to stop employees from joining a rival. The two companies were partners not long ago, with ChatGPT built into Apple software since 2024, before Apple moved Siri to Google’s Gemini models.The timing matters for OpenAI, which is preparing to go public at a targeted $1.4 trillion valuation. Bloomberg has reported its first device will be a doughnut-shaped smart speaker priced above $300 (about Rs 26,400).Trial is expected in October 2027, though OpenAI says it could be ready as early as June 2027. Until then, the 14 devices it must image will show how far Apple’s “few bad apples” argument goes.