Apple has filed a lawsuit against OpenAI today, accusing the company of trade secret theft. Specifically, Apple alleges that its former employees have stolen trade secrets “for the benefit of OpenAI.” The legal action, filed in the U.S. District Court for the Northern District of California, marks a significant escalation in tensions between two of the tech industry's most powerful players.
The Allegations
The complaint centers on two key defendants: Tang Tan and Chang Liu. Tan served as vice president of product design at Apple, leading the design of the iPhone and Apple Watch. He left the company in February 2024 to join Jony Ive, the former chief design officer of Apple, at his design consultancy. Liu, a senior system electrical engineer who worked at Apple for eight years, departed in January 2026 to join OpenAI directly.
Apple claims that Tan used insider knowledge of confidential Apple projects to grill job candidates during interviews, extracting further proprietary information. The lawsuit alleges that Tan would direct candidates still employed at Apple to bring actual hardware components and samples to interview sessions for “show and tell.” At least one candidate reportedly expressed surprise, stating he “didn’t even know we could take those from the office.”
Furthermore, Apple says Tan possessed and distributed an internal Apple document titled “Need to Know” to new OpenAI hires before they resigned from Apple. This document outlined Apple’s departure security protocols, enabling employees to evade standard procedures. The lawsuit states that Apple found a “pattern by employees who depart for OpenAI of taking steps to evade the security processes intended to protect Apple’s confidential information.”
Liu’s Alleged Misconduct
Chang Liu is accused of exploiting a security bug to download confidential engineering files after leaving the company. Rather than reporting the vulnerability, he allegedly joked about it in messages, writing “LOL” and “so funny.” Liu also failed to return an Apple-issued laptop after his departure. Apple alleges that Liu downloaded a compilation of technical files with over a thousand pages, including detailed manufacturing documents for complex circuit boards used in Apple hardware products.
Additionally, Liu is accused of coaching another Apple employee, whom he was recruiting for OpenAI, on which confidential materials to study before her interview. This pattern of systematic theft, Apple argues, has allowed OpenAI to build its nascent hardware business on a foundation of stolen intellectual property.
OpenAI’s Hardware Ambitions
The lawsuit comes as OpenAI pushes ahead with its first consumer hardware device. The company’s hardware efforts are being led by Jony Ive, the legendary designer behind Apple’s most iconic products. OpenAI acquired Ive’s startup io as part of a $6.5 billion deal last year. The acquisition included more than 50 engineers, developers, and employees. Ive founded io in collaboration with Scott Cannon, Evans Hankey, and Tang Tan. Hankey led Apple’s design team for several years after Ive’s departure, leaving in 2022 before reuniting with Ive at io. Cannon also previously worked at Apple. Notably, Ive, Hankey, and Cannon are not personally named in the initial filing.
Rumors about OpenAI’s hardware plans have circulated for months. In April, analyst Ming-Chi Kuo reported that OpenAI is developing its own smartphone, potentially launching in 2028. The Information has also reported on OpenAI’s work on a HomePod-style smart speaker. These devices would compete directly with Apple’s iPhone and HomePod, making the theft of Apple’s trade secrets particularly damaging.
Broader Context
Apple says it first raised concerns with OpenAI directly in February, asking the company to investigate and address the issue. OpenAI, however, never responded. Apple characterizes the conduct detailed in the filing as “the tip of the iceberg,” noting that it lacks visibility into what happens behind closed doors at OpenAI. The complaint states: “This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership. This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information. As a natural result, OpenAI’s nascent hardware business now rests.”
Apple also alleges that OpenAI used a trusted Apple supplier to carry out Apple’s proprietary metal-finishing technique, misleading the supplier into believing it had Apple’s permission. Additionally, OpenAI approached a second longtime Apple supplier that works on power and battery manufacturing, using insider terminology to ask “targeted questions” about specific Apple components. The lawsuit seeks injunctive relief and damages, aiming to prevent further misuse of Apple’s intellectual property.
The legal battle comes after Bloomberg reported that OpenAI was preparing potential legal action against Apple over how the partnership to integrate ChatGPT into Siri played out. However, Apple’s filing explicitly states that the partnership agreement is not at issue here. The focus is solely on trade secret theft by former employees.
Over 400 former Apple employees now work at OpenAI, according to the lawsuit. The mass exodus underscores the intense competition for talent in the AI and hardware sectors. Apple’s aggressive stance signals that it will not tolerate the poaching of engineers and the theft of its proprietary knowledge, especially as OpenAI moves into hardware territory directly competing with Apple’s core products.
The case will likely hinge on evidence of actual transfer of trade secrets, such as documents, emails, and testimony from whistleblowers. Legal experts predict a lengthy discovery process, given the high stakes for both companies. Apple’s reputation for protecting its intellectual property is legendary, and this lawsuit reinforces that image. For OpenAI, the lawsuit poses a significant distraction as it races to bring its hardware to market. The outcome could shape the future of consumer AI devices and redefine the boundaries of employee mobility in the tech industry.
Source:9to5Mac News