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OpenAI faces hiring settlement and Apple trade-secrets injunction request

OpenAI reached a 3.2 million dollars hiring discrimination settlement with the US Department of Justice while Apple requested a preliminary injunction and discovery covering 11 former employees in its trade-secrets lawsuit.

Artificial Intelligence··Midday
A low trolley of blue-banded closed cartons waits beside a long pale table; across a wide empty span, four open cartons with raised dividers recede toward a blank wall.

A 3.2 million dollars hiring settlement with the Justice Department

The US Department of Justice announced a 3.2 million dollars settlement with OpenAI and its subsidiary Statsig to resolve allegations of violating the Immigration and Nationality Act during the permanent labor certification (PERM) process. According to the department, OpenAI failed to advertise certain PERM positions on its official careers site, required paper applications for those specific roles while accepting electronic submissions for other jobs, and in some instances aired radio advertisements late at night. The Justice Department stated that these recruitment practices discouraged qualified US applicants while favoring foreign workers entering on temporary visas. Of the total 3.2 million dollars payout, 1.2 million dollars represents civil administrative penalties, while 2 million dollars is allocated as compensation for job seekers affected by the alleged hiring discrimination. Under the agreement, OpenAI pledged to revise its hiring guidelines, institute mandatory workforce training, and submit to ongoing Department of Justice oversight. The company denied all wrongdoing within the settlement agreement, which does not constitute a criminal conviction. Assistant Attorney General Harmeet Dhillon of the Civil Rights Division stated that preferring temporary visa holders over US workers violates federal law and that the settlement rectifies the resulting harm.[1]

Injunction request and 11 former employees in the Apple lawsuit

Apple petitioned a federal court for a preliminary injunction and expedited discovery in its ongoing trade-secrets lawsuit against OpenAI. According to court filings reported by TechCrunch, Apple aims to prevent OpenAI from developing artificial intelligence devices or hardware products relying on Apple's proprietary technologies. The requested expedited discovery focuses on OpenAI employees Chang Liu and Chief Hardware Officer Tang Yew Tan, OpenAI, its corporate foundation, and io, the hardware startup co-founded with Jony Ive. Apple asserted that its internal investigation identified approximately 11 additional former Apple employees beyond Yu-Ting Peng named in the original complaint who may be witnesses or participants. The filing alleges that one former employee met Liu and Peng prior to Peng's OpenAI interview to discuss confidential details regarding unannounced products, another took screenshots of sensitive documents before interviewing, and multiple former Apple personnel currently at OpenAI discussed returning company-issued devices following the lawsuit. OpenAI responded publicly that Apple's injunction request relies on inaccurate information, maintaining that OpenAI neither possesses nor seeks Apple's trade secrets.[2]

Simultaneous legal pressure on talent acquisition and trade secrets

These two legal developments illustrate the heightened regulatory and judicial environment facing leading artificial intelligence companies as they interact with government agencies and industry rivals. The Department of Justice settlement underscores the legal obligation for technology firms to maintain fair recruitment balances between domestic and foreign applicants during workforce expansion. Simultaneously, Apple's lawsuit highlights the legal boundaries governing trade secrets when key hardware and software talent moves between competing firms. As OpenAI agrees to financial payouts and administrative oversight regarding federal hiring claims, it concurrently contests Apple's injunction attempt as unfounded. With competition for specialized engineering talent intensifying across the sector, the relationship between rapid corporate scaling and legal compliance has become increasingly prominent. Together, both proceedings demonstrate how human resources recruitment and intellectual property protection within the artificial intelligence ecosystem are drawing rigorous official oversight.[1], [2]

References

  1. News sourceFox BusinessOpenAI will pay 3.2 million dollars to settle foreign-worker hiring claims↩1↩2
  2. News sourceTechCrunchApple seeks an injunction and flags more ex-employees in the OpenAI case↩1↩2