Apple has escalated its legal battle against OpenAI by requesting a preliminary injunction that would bar the AI company and two former Apple employees from accessing or using any of Apple's confidential information. The move, filed in a US court on Monday, comes weeks after Apple sued OpenAI, alleging that the company orchestrated a scheme to acquire Apple's trade secrets related to unreleased technologies and future products.

In its filing, Apple argues that without the injunction, it will suffer irreparable harm as OpenAI accelerates its efforts to develop dedicated AI hardware. The lawsuit centers on Tang Tan, OpenAI's chief hardware officer and a former Apple vice president who oversaw iPhone and Apple Watch design. Apple alleges that Tan directed Apple employees interviewing at OpenAI to bring actual hardware components to interviews for "show and tell" sessions, enabling OpenAI to extract proprietary information.

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The complaint also names Chang Liu, a former Apple senior system electrical engineer, who allegedly stole an Apple laptop before joining OpenAI and maintained contact with an Apple employee who continued sharing internal data. More critically, Apple claims Liu exploited a software flaw to retain access to Apple's internal file servers after his departure.

Apple says it first contacted OpenAI in February to raise concerns about potential misuse of confidential information, but received no response. However, OpenAI has publicly disputed this narrative, publishing a detailed blog post that challenges Apple's account. OpenAI asserts that Apple's outside counsel mistakenly emailed the wrong person—confusing two Asian last names—and that Apple later conceded no discussion with OpenAI's general counsel ever took place.

Regarding Liu, OpenAI claims Apple now admits that Apple employees reached out to Liu after his departure, not the other way around. OpenAI published messages showing Apple colleagues asking Liu for help locating files and answering technical questions. OpenAI argues that Apple's failure to properly manage system access for departing employees is a systemic issue, not evidence of wrongdoing by Liu.

OpenAI also defended Tan, stating he has always instructed his team not to use confidential information from other companies. The company expressed disappointment that Apple did not raise its concerns directly before filing suit, and called the injunction request "based on false information and completely unnecessary."

In addition to the injunction, Apple has filed a motion for expedited discovery, seeking depositions from Tan, Liu, and other individuals, as well as document production related to alleged access to Apple's proprietary information. The legal clash underscores the intensifying competition in AI hardware, where both companies are vying for dominance. Apple's recent market volatility, including a 10% drop from its $5 trillion peak, has been partly attributed to AI supply chain issues, while OpenAI's hardware ambitions have drawn attention, including Nvidia's $250 billion lease guarantee for OpenAI, which has raised credit market concerns.

The outcome of this case could have significant implications for trade secret protection in the tech industry, particularly as talent mobility between major players becomes more common. Investors will be watching closely, as legal uncertainties could affect both companies' strategic plans. For Apple, the lawsuit is part of a broader effort to safeguard its intellectual property amid revenue challenges in China and services. For OpenAI, the dispute adds to a series of security and operational hurdles it has faced recently.

This article is for informational purposes only and does not constitute financial advice.