Update: OpenAI won't use Apple's secrets. 14 devices seized

TechCrunch headline: Judge orders OpenAI to turn over hiring records in Apple trade secrets case

OpenAI blinked. On October 14 at a federal court hearing in San Jose (UTC-7), the company voluntarily agreed not to use any trade secrets Apple claims were stolen by former employees — while the lawsuit plays out. The concession came moments after Judge Edward Davila said he was "highly likely" to grant Apple's request for a preliminary injunction.

This is a significant shift from just 24 hours earlier, when OpenAI was fighting the injunction and filing its own accusations against a former employee who returned to Apple. Now OpenAI is on the defensive, committing to forensic collection from 14 employees' devices and accepting court-enforced oversight.

What changed at the hearing

Judge Davila's signal that he would grant the injunction forced OpenAI's hand. The agreement, as reported by Bloomberg, includes three key commitments:

  1. No use of alleged trade secrets — OpenAI will not access, use, or disclose any confidential Apple information during the pendency of the case.
  2. Forensic imaging of 14 devices — OpenAI must collect forensic images from 14 employees whose devices "may contain Apple's confidential information."
  3. Court-enforced compliance — Judge Davila retains authority to enforce the agreement, meaning OpenAI could face sanctions if it violates the terms.

But Apple didn't get everything. Davila pushed back on the company's request to inspect every device and repository that might contain its trade secrets, calling it a "huge ask." Apple's attorney, John M. Desmarais, narrowed the scope, saying OpenAI doesn't have "400 bad apples" but rather "a few bad apples and know who they are."

OpenAI's counter-allegations, now in detail

Hours before the hearing, OpenAI filed its own motion with explosive specifics. The company alleges that a former employee — who joined from Apple, spent six months at OpenAI, then returned to Apple — sent more than 100 highly confidential files to personal accounts.

Those files allegedly covered at least one unreleased OpenAI device and included:

Some files were sent shortly after midnight on June 2 in Singapore (UTC+8) — the employee's final day at OpenAI. OpenAI also claims the employee presented its product plans to senior Apple executives, including Apple's vice president of operations in Asia.

OpenAI cited Apple's recent announcements of HomeView and Home Collection as evidence that its confidential information could be shaping Apple's new AI-enabled products. That claim has not been established by the court.

Apple told Bloomberg it found no evidence to substantiate OpenAI's claims and has policies preventing use of confidential information from previous employers. The company characterized the allegations as an attempt to distract from evidence that OpenAI employees took Apple product information.

The road that got us here

This is the latest turn in a lawsuit Apple filed on July 10 (UTC-7) against OpenAI, hardware chief Tang Yew Tan, former iPhone engineer Chang Liu, and io Products. Apple alleges confidential information about product design, manufacturing, components, testing, and suppliers was taken to help OpenAI develop competing devices.

On October 13 (UTC-7), Judge Davila granted Apple limited expedited discovery — hiring records, interview materials, previously collected forensic evidence, and depositions — while declining to accelerate access to R&D documents. OpenAI was given five days to turn over organized materials and 14 days for the rest.

The October 14 hearing was supposed to address Apple's preliminary injunction request and OpenAI's motion to dismiss. Instead, it produced a voluntary agreement that effectively grants Apple much of what the injunction would have achieved — without a formal ruling.

Why it matters

OpenAI's concession is more than a legal formality. It's the first major loss for the company in a case that threatens its entire consumer hardware strategy.

The core issue is that OpenAI's hardware division — the team building what's widely expected to be an AI-powered device to compete with iPhone — is staffed heavily by former Apple employees. Apple's lawsuit argues that OpenAI's hiring practices effectively turned job interviews into intelligence-gathering sessions, with candidates bringing prototypes and design files. If the forensic imaging of those 14 devices turns up Apple documents, the case escalates dramatically.

The 14-device number is telling. It suggests Apple's evidence was specific enough to identify a group, and OpenAI accepted that scope without fighting it. For a company that has repeatedly denied any wrongdoing, agreeing to forensic collection is a notable reversal — even if framed as voluntary.

For the broader AI industry, this case is rewriting the playbook for talent poaching. The days of hiring a competitor's hardware team and assuming trade secret claims will fade away may be ending. Judge Davila's willingness to grant expedited discovery and signal an injunction sends a message to every AI lab building physical products: your hiring records and employee devices are discoverable, and the courts will move fast.

The parallel with Waymo v. Uber is unavoidable. In that case, Uber's acquisition of Anthony Levandowski's Otto led to a trade secret lawsuit, a preliminary injunction fight, and ultimately a $245 million settlement. OpenAI is now at the same crossroads Uber faced in 2017 — and its decision to concede before a formal injunction suggests it sees the same writing on the wall.

The critical view

It's important to separate what's established from what's alleged. OpenAI's agreement not to use trade secrets is not an admission that it possesses or has used any — it's a litigation strategy to avoid a formal injunction that would carry more stigma and potentially broader restrictions. The 14 devices may contain nothing, or they may contain personal copies of documents the employees were entitled to keep.

OpenAI's counter-allegations are also unproven. The "100 files" claim comes from OpenAI's own filing, and Apple has denied any misuse. The Singapore midnight timing looks suspicious but isn't evidence of wrongdoing on its own — people send work files to personal accounts for all kinds of reasons, some legitimate.

And Judge Davila's "huge ask" rebuke to Apple shows the court isn't simply rubber-stamping Apple's demands. The judge is balancing Apple's legitimate trade secret concerns against the burden of sweeping forensic inspections on a company building new products.

What to watch next

Three developments will determine where this goes:

  1. The forensic imaging results — if the 14 devices contain Apple documents, expect Apple to push for a broader injunction and potentially criminal referrals. If they're clean, OpenAI gains leverage to settle on favorable terms. Watch for court filings in the next 30 days.
  2. Whether OpenAI files formal counterclaims — the October 14 motion asked for time to investigate and pursue counterclaims if warranted. If OpenAI follows through, the case becomes a two-front war rather than Apple's unilateral enforcement action.
  3. The impact on OpenAI's hardware timeline — if key engineers are deposed and devices are imaged, product development could slow. OpenAI's first consumer hardware device was already reportedly pushed to 2027 due to a trademark dispute. Any further delay would be a strategic win for Apple.

The legal system moves slowly, but this case is moving fast. In the span of 48 hours, Apple won expedited discovery, OpenAI conceded on trade secret use, and 14 employees' devices are headed for forensic inspection. The next hearing could determine whether this ends in a settlement or becomes the defining trade secret case of the AI hardware era.