Apple sent legal preservation letters to roughly 40 former employees now working at OpenAI, widening the trade secrets lawsuit it filed last week in California federal court. The Financial Times reported the letters instruct recipients to preserve documents, emails, and communications and demand meetings with Apple's legal team.
The preservation orders target employees not named in the original complaint, signaling that Apple believes the alleged data theft extends beyond the two individuals it is already suing. More than 400 former Apple employees currently work at OpenAI, a figure Apple itself disclosed in its lawsuit.
Apple's July 10 complaint accuses OpenAI and two former Apple engineers Tang Tan and Chang Liu of orchestrating a months-long scheme to extract confidential hardware designs, manufacturing processes, and information about unreleased products. Tan, a 24-year Apple veteran who led iPhone and Apple Watch product design, is now OpenAI's Chief Hardware Officer.
Liu, a former senior systems electrical engineer, allegedly kept an Apple-issued laptop after leaving and downloaded confidential technical documents. The lawsuit claims OpenAI instructed Apple employees interviewing for jobs to bring "Actual parts" from Apple for show-and-tell sessions. Apple's filing describes the alleged misconduct as the "tip of the iceberg," adding that the company "lacks visibility into what's been happening behind closed doors at OpenAI."
OpenAI has denied the allegations. Spokesperson Drew Pusateri told reporters the company has "no interest in other companies' trade secrets." A separate statement from OpenAI said it is "not aware of any evidence that this complaint has merit." The legal escalation threatens OpenAI's hardware ambitions. Last year, the company acquired io Products, the hardware startup founded by former Apple design chief Jony Ive, for $6.5 billion.
Bloomberg reported this week that OpenAI and io Products are developing a screenless smart speaker designed to function as a "humanlike AI companion," expected to be announced by the end of this year with a 2027 launch. OpenAI is also exploring a separate mobile AI device.
This week, OpenAI released its first branded hardware product: a $230 mini keyboard built for its Codex coding agent.
Apple is seeking an injunction barring OpenAI from using any Apple-derived information in its hardware development, along with the return of all confidential materials and monetary damages from Tan and Liu for breach of contract. The company sent OpenAI a letter in February 2026 raising concerns about the alleged conduct and received no response, according to the lawsuit.
For the 40 recipients of the preservation letters, the stakes are personal. While not named as defendants, each has been formally placed on notice that their files, devices, and communications may be sought as evidence.
Destroying relevant material after receiving a preservation letter can constitute spoliation of evidence.
