Apple Inc. is expanding its legal offensive against OpenAI, sending preservation notices to roughly 40 former Apple employees now working at the artificial intelligence company as the high-stakes trade-secrets lawsuit proceeds. The letters instruct recipients to preserve any documents, communications, or other materials that could be relevant to Apple’s claims and to meet with the company’s attorneys. This move is designed to safeguard potential evidence as litigation proceeds, with OpenAI reportedly employing as many as 400 former Apple workers.

The notices come one week after Apple sued OpenAI in U.S. District Court in San Jose, California. The lawsuit alleges the ChatGPT maker orchestrated a campaign to recruit Apple employees and obtain confidential information related to unreleased hardware, proprietary engineering processes, and product development. Apple claims the alleged misappropriation was directed by senior OpenAI leadership rather than being limited to isolated employee actions.

The legal battle marks a sharp escalation in tensions between two companies whose relationship has become increasingly complex. While Apple has integrated OpenAI’s ChatGPT into Apple Intelligence features across its ecosystem, OpenAI has simultaneously emerged as a potential hardware competitor. This rivalry intensified following OpenAI's acquisition of IO Products, a startup led by former Apple designer Jony Ive, for $6.4 billion.

The lawsuit names specific individuals, including OpenAI Chief Hardware Officer Tang Tan and Chang Liu, a former Apple employee who joined OpenAI in 2026. Apple’s court papers allege Tan steered recruiting conversations toward extracting confidential details from Apple employees and encouraged departing staff to sidestep internal security steps. The complaint further claims OpenAI asked outside hardware partners to use a metal-finishing method Apple says it created, while suggesting Apple had authorized that work.

Industry Reaction and Future Outlook

The lawsuit has drawn sharp reactions from tech industry observers. Futurum Group CEO Daniel Newman suggested OpenAI’s relationships with major technology companies are deteriorating, noting the conflict follows reports that Microsoft Corp. is replacing some OpenAI software with its in-house MAI models. Elon Musk also reacted to the allegations, replying "Sounds pretty bad" to a post highlighting the claims.

The dispute became public shortly after OpenAI confidentially filed paperwork with the U.S. Securities and Exchange Commission for a proposed initial public offering. This filing potentially exposes the company to greater scrutiny from investors over intellectual property risks. As OpenAI accelerates its consumer hardware ambitions, reports indicate the company is developing a new line of AI-native devices, with an AI-powered smart speaker expected to be its first major hardware product and a potential launch targeted for 2027.

Apple Inc. stock was little changed in Friday's premarket trading as investors trimmed exposure to large-cap technology stocks. Nasdaq futures were down 1.64%, while S&P 500 futures fell 0.79%, weighing on the broader tech sector. Apple's modest decline appeared to reflect broader risk-off sentiment rather than company-specific news, with the stock trading near the upper end of its 52-week range.

Product Launches and Pricing

Apple is preparing to launch its first OLED-equipped iPad mini as early as October, while refreshed entry-level iPad and iPad Air models are planned for 2027, Bloomberg reported. The OLED display could lead to a higher price for the iPad mini, following Apple's recent price increases across its iPad lineup driven by higher memory chip costs.

Technical Analysis

Apple continues to trade in a strong long-term uptrend. The stock sits 9.7% above its 20-day simple moving average of $303.63 and 21.6% above its 200-day simple moving average of $273.82. However, momentum is becoming stretched, with the relative strength index at 71.86, above the 70 level that often signals overbought conditions.

The technical trend remains constructive, with the 20-day simple moving average above the 50-day average and a golden cross formed in September 2025 still intact. A key support level is around $287.50, close to the 100-day exponential moving average of $287.84.

Earnings and Valuation

Apple is scheduled to report fiscal third-quarter results on July 30. Wall Street expects earnings of $1.89 per share, up from $1.57 a year earlier, on revenue of $108.86 billion, compared with $94.04 billion in the prior-year quarter. The stock trades at 40.3 times earnings, reflecting a premium valuation. Analysts maintain a consensus Buy rating with an average price forecast of $322.74.

Recent research has been mixed. KeyBanc downgraded the stock to Underweight with a $250 price forecast on July 14, while Citigroup and Evercore ISI both reiterated bullish ratings with $365 price forecasts. According to Benzinga Edge, Apple scores strongly for Momentum (90.1) and Quality (98.39) but ranks poorly on Value (4.42).

Apple shares were down 0.19% at $332.61 during premarket trading on Friday.