Apple Tries to Block OpenAI's AI Phone with Injunction Over 11 Leaked Secrets

Apple has escalated its legal war against OpenAI by filing a motion for a preliminary injunction that seeks to block the AI company and two of its former Apple employees from using or disclosing confidential trade secrets, framing the dispute as an existential threat to its hardware ecosystem. In a filing in the U.S. District Court for the Northern District of California on August 3, 2026, Apple claims that OpenAI’s push into consumer devices—particularly a rumored AI phone that could bypass traditional apps and operating systems—is built on stolen proprietary knowledge. The move follows an earlier lawsuit that named Chang Liu, a former senior electrical engineer at Apple, and Tang Yew Tan, a former VP of product design for iPhone and Apple Watch, who now work for OpenAI. Apple also seeks expedited discovery into documents and depositions from these individuals, as well as from io Products (OpenAI’s commercial arm), a yet-unnamed ex-Apple employee now at OpenAI, and Yu-Ting Peng. The suit reveals deep anxieties inside Apple about losing its hardware moat. The iPhone’s integrated experience—tightly coupled hardware, software, and services—generates nearly half of Apple’s revenue. Analysts have long speculated that OpenAI, with access to advanced AI and a desire to control user interfaces, is developing a device that disrupts the smartphone paradigm. Apple’s injunction request underscores its view that any such device that leverages its trade secrets would cause ‘irreparable harm’ that money damages cannot fix. The new filing also expands the scope of the investigation: Apple claims it has identified 11 additional former employees who may have witnessed or participated in the misappropriation. One of them allegedly took screenshots of confidential documents related to an unreleased Apple product before an interview with OpenAI. Another group discussed Apple’s proprietary information prior to joining the AI company. After the lawsuit was filed, several former Apple employees now at OpenAI attempted to return Apple-issued devices they had kept—an act Apple characterizes as suspicious. OpenAI has denied wrongdoing, calling the injunction ‘based on false information’ and ‘completely unnecessary,’ arguing that Apple’s own security gaps allowed ex-employees to retain access. This clash goes beyond a typical trade-secret case; it represents a collision between two of the world’s most valuable companies, each with a fundamentally different view of the next computing platform. OpenAI is betting on a world where AI agents replace apps, while Apple’s iPhone ecosystem depends on tightly controlled app distribution and hardware integration. The outcome could influence how intellectual property law applies to AI hardware development, setting a precedent for the entire tech industry. A ruling on the injunction is pending, and the expedited discovery process will likely force OpenAI to reveal the extent of its hardware ambitions—and whether those ambitions relied on Apple’s crown jewels.