Apple NASDAQ:AAPL has escalated its legal battle with OpenAI by seeking a preliminary injunction that would restrict the ChatGPT maker and two former Apple employees from using or sharing alleged trade secrets. The request raises the stakes in a dispute that could influence OpenAI's expansion into consumer hardware and intensify its emerging competition with Apple.
In a filing submitted Monday, Aug. 3, Apple asked a U.S. district court to temporarily block OpenAI and former employees Chang Liu and Tang Yew Tan from accessing, obtaining, using or disclosing the disputed information while the lawsuit proceeds.
Apple argued that it could be irreparably harmed without immediate court intervention. The company also requested expedited evidence gathering related to the alleged confidential material and permission to question Liu, Tan and OpenAI employee Yu-Ting Peng.
Apple is additionally seeking testimony from representatives of io Products, OpenAI's hardware operation, and an unnamed OpenAI employee who previously worked at Apple.
The legal fight stems from Apple's lawsuit filed last month, which accused OpenAI of obtaining confidential information to support its push into consumer devices. OpenAI rejected the allegations and opposed the injunction, saying it neither possesses nor wants Apple's trade secrets.
The dispute matters because OpenAI's planned hardware entry could expand its rivalry with Apple beyond software and AI assistants into devices that compete for consumer attention and potentially challenge the iPhone-centered ecosystem.
Apple shares were already under pressure, falling 1.78% Monday and more than 11% over five trading sessions following a weaker-than-expected revenue outlook.
Investor Takeaway On Apple Stock
Investors should watch whether the court grants Apple's injunction and how broadly any restrictions apply. A favorable ruling could delay OpenAI's hardware development or limit its access to former Apple talent and technical knowledge.
A denial would weaken Apple's immediate legal leverage and allow OpenAI's device strategy to proceed with fewer constraints. The larger risk is strategic rather than near-term financial: OpenAI could eventually create a new consumer computing platform that competes with Apple's hardware, services and control of the user interface.