Apple has sent legal preservation letters to around 40 former Apple employees now working at OpenAI, escalating its trade secret theft lawsuit filed last week. The move suggests that Apple suspects the alleged misappropriation of confidential information extends well beyond Tang Tan and Chang Liu, the two executives named in the original complaint filed July 10.
A preservation letter is a formal notice requiring recipients to safeguard documents, records, and communications relevant to pending litigation. Apple is instructing these former employees to hold onto evidence that may prove useful during discovery as the case proceeds toward a jury trial, as reported by the Financial Times.
Apple’s focus on 40 additional individuals suggests it believes a coordinated effort to obtain proprietary information about hardware engineering and product development involved more people than initially disclosed. OpenAI currently employs more than 400 former Apple workers, making the preservation letters a significant escalation of the investigation.
What Apple Alleges
Tang Tan, OpenAI’s Chief Hardware Officer and a 24-year Apple veteran who led iPhone and Apple Watch product design, departed Apple in February 2024 to work with Jony Ive. Chang Liu, a senior system electrical engineer at Apple for eight years, joined OpenAI in January 2026.
According to Apple’s filing, Tan and Liu directed Apple employees interviewing with OpenAI to disclose details on unreleased devices, components, manufacturing processes, and vendor relationships. Liu allegedly retained an Apple-issued laptop after leaving and exploited a vulnerability to download dozens of confidential documents while employed at OpenAI. Apple claims Liu also maintained contact with Yu-Ting “Alyssa” Peng, an ongoing Apple employee, who provided updates on Apple’s projects, vendor decisions, and engineering details. When Liu discovered he could still access Apple’s network storage, he texted Peng: “LOL, I found out I can access the [network storage], so funny.”
Litigation Complications and Damage
Settlement talks between the two companies broke down after an outside lawyer for Apple mistakenly emailed the wrong OpenAI employee, causing confusion that derailed negotiations before the lawsuit was filed.
OpenAI has denied the allegations, stating it is “not aware” of evidence supporting Apple’s claims. The company argues it believes in “fair competition and allowing people the freedom to work wherever they choose,” emphasizing its focus on building new technology.
This is OpenAI’s second trade secret lawsuit over its hardware ambitions in just over a year. In March 2026, hardware startup iyO amended its complaint against OpenAI and io Products (the Jony Ive-led company acquired by OpenAI in a $6.5 billion deal last year) to include allegations of trade secret misappropriation.
The preservation letters represent Apple’s calculation that discovery will uncover a wider pattern of alleged misconduct than the named defendants suggest, strengthening its case for an injunction blocking OpenAI’s use of any Apple information and damages.
