Judge says Apple injunction against OpenAI ‘highly likely’

Apple and OpenAI faced each other in a San Jose federal courtroom on Wednesday, October 14, for the first major hearing in the iPhone maker's lawsuit accusing the AI company of scheming to obtain confidential hardware information. U.S. District Judge Edward Davila heard two opposing motions in one sitting. Apple wants a preliminary injunction that would stop OpenAI from using anything allegedly taken from it. OpenAI wants the whole case dismissed.news.bloomberglaw+1

The Verge reported that the judge may be leaning toward Apple. Davila could rule from the bench or take both motions under submission and issue written orders in the coming weeks.theverge+1

The competing claims

Apple sued in July. It named OpenAI, OpenAI's hardware chief Tang Tan and former iPhone engineer Chang Liu, and alleged a plan to pull confidential information from former Apple employees about product design, manufacturing, component technologies, testing and the supply chain. The design firm io Products is also a defendant. Apple says OpenAI used job interviews to get proprietary information and that its leaders told candidates to bring prototypes and "design artifacts" to "show and tell" sessions. Apple also alleges that Liu used an authentication flaw after he left the company to reach Apple's network storage and download files.thenextweb+1

OpenAI's main argument is that Apple has not identified any specific trade secret, only broad categories of hardware information. Apple answered in an August filing that spelling out its secrets in detail in a public document would reveal the very information it is trying to protect. OpenAI calls the suit an attempt to stop employees from leaving for a competitor. It also says Apple encouraged staff to use personal iCloud accounts for work and that an authentication error left Liu with access after he departed. "OpenAI has no need or desire for Apple's trade secrets," the company said in an October filing.news.bloomberglaw+1

Early discovery win for Apple

On Tuesday, October 13, Davila partly granted Apple's request for expedited discovery. He ordered the defendants to hand over forensic images, the scripts and checklists used to interview Apple candidates, and Liu's messages to an OpenAI colleague since January. He also cleared depositions of Liu and Tan. He turned down early access to OpenAI research on metal finishes, power management and batteries, and called Apple's category of "Apple Originated Information" amorphous.thenextweb+1

Partners turned rivals

The two companies have been in a partnership for two years that built ChatGPT into Apple software. The relationship soured as hundreds of Apple employees moved to OpenAI. OpenAI bought io, the hardware startup founded by former Apple design chief Jony Ive, for $6.4 billion in 2025. Ive is not a defendant.df+1

Bloomberg has reported that OpenAI's first device will be a doughnut-shaped smart speaker priced above $300, expected in 2027. The case has put a cloud over OpenAI as it targets a $1.4 trillion valuation ahead of a possible public listing.news.bloomberglaw+1