Apple and OpenAI Head to Trial Over Alleged Trade Secrets Theft in July 2027

Apple Files Lawsuit Against OpenAI and Former Employees

Apple and OpenAI are headed for a courtroom showdown, with Judge Edward Davila setting the trial date for July 19, 2027, at 9:00 a.m. PST.1

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The legal battle stems from a lawsuit Apple filed in July 2026 against OpenAI, along with former Apple employees Tang Tan and Chang Liu.2

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Apple alleges the two former employees misused Apple's trade secrets by taking confidential documents to OpenAI and io Products to accelerate AI hardware development.1

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The Cupertino-based tech giant argues this gave OpenAI a backdoor entry into a market Apple has dominated for years.2

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OpenAI Denies Allegations and Offers Cooperation

OpenAI has strongly denied the allegations, stating it never requested Apple secrets and that any Apple files were retained by accident.1

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The AI company also challenged Apple's claim that it failed to take complaints about improper handling of trade secrets seriously.2

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To demonstrate good faith, OpenAI offered forensic images from 14 former Apple employees and pledged to avoid using Apple's intellectual property.1

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The company handed over copies of computer drives so they could be independently checked, signaling full cooperation with the court.2

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Discovery Orders and Escalating Tensions

The court authorized Apple to pursue discovery tied to OpenAI's hiring of former Apple employees.1

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This includes access to devices, messaging accounts, software assistants, job interviews, and records of how Apple information was handled.1

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Apple narrowed its requests to focus specifically on former employees hired by OpenAI, and Judge Edward Davila agreed to allow more information to be exchanged.2

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The dispute has deeper roots, with Apple claiming friction between the companies dates back to 2019.1

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OpenAI even accused an Apple employee who returned in June 2026 of taking hardware secrets, though Apple dismissed that claim as false.1

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Corporate Competition in AI Industry Intensifies

Apple has raised concerns about OpenAI's aggressive hiring practices, noting that the company has recruited more than 400 former Apple employees.1

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The tech giant also pointed to what it called improper injunction arguments and destruction of evidence in court filings.1

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Apple's own offboarding process may come under legal scrutiny as OpenAI suggests it could be a factor in how confidential documents were handled.1

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Both companies are racing to dominate AI hardware development, with Apple pushing harder into smarter devices and OpenAI reportedly working on voice-first products, smart speakers, and smart glasses.1

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What to Watch Before the 2027 Trial

Lawyers for both sides must hold a settlement conference by June 1, 2027, a standard procedure in such cases.2

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Fact collection for the trial will be completed by March 2027, with a pre-trial hearing scheduled for June 24.2

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Court filings are expected to continue leading up to the trial, offering more insight into the evidence and arguments from both sides.1

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This lawsuit could slow down product plans for both companies and strain their relationship further, especially as they compete for dominance in AI-driven devices.1

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The outcome will likely set important precedents for how tech companies protect intellectual property and manage employee transitions in the fast-moving AI sector.