San Francisco Daily 360

collapse
Home / Daily News Analysis / OpenAI responds to Apple’s trade secret theft lawsuit

OpenAI responds to Apple’s trade secret theft lawsuit

Jul 12, 2026  Twila Rosenbaum 13 views
OpenAI responds to Apple’s trade secret theft lawsuit

OpenAI has issued a formal statement in response to Apple’s highly publicized lawsuit accusing the artificial intelligence company of trade secret theft. The legal battle centers on allegations that former Apple employees, now working at OpenAI and its hardware partner io Products, improperly obtained and used confidential information related to Apple's hardware designs and manufacturing processes.

The Allegations in Detail

Earlier today, Apple filed a complaint in federal court naming former employees Chang Liu and Tang Tan, as well as OpenAI and io Products, as defendants. The lawsuit alleges “trade secret misappropriation and breach of contract,” claiming that the individuals and companies engaged in a systematic effort to steal Apple's proprietary hardware knowledge. Apple asserts that Liu and Tan, while still employed by Apple, accessed sensitive files and shared them with OpenAI executives and engineers. The company also alleges that OpenAI encouraged job candidates to bring Apple prototypes and components to job interviews, and that the startup used confidential information to approach Apple’s suppliers.

Apple’s filing paints a picture of a “pattern of theft” that it says is “normalized and exemplified by leadership” at OpenAI. The complaint includes detailed accounts of specific instances where confidential data was allegedly transferred, including schematics for upcoming Apple devices and manufacturing blueprints. Apple claims that this misconduct has given OpenAI an unfair advantage in developing its own consumer hardware, which is being designed in collaboration with former Apple chief design officer Jony Ive and his firm io Products.

OpenAI’s Response

Following the lawsuit’s filing, OpenAI’s Director of Strategic Communications, Drew Pusateri, took to social media to issue a brief but firm denial. “Our statement in response to this suit: We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere,” Pusateri wrote. The statement was shared widely and quickly became a focal point of the ongoing debate over intellectual property rights in the tech industry.

OpenAI has not yet filed a formal legal response, but its spokesperson indicated that the company intends to vigorously defend itself against what it considers to be baseless accusations. Legal experts note that OpenAI’s quick public denial suggests a strategy of maintaining public trust while preparing for a lengthy court battle. The company has also pointed to its own trade secret protection policies, which it says strictly prohibit the use of confidential information from other organizations.

Background: The Jony Ive Partnership

The lawsuit is the latest chapter in a complex relationship between Apple and OpenAI, which began collaborating on hardware projects in 2024 through the io Products partnership. Jony Ive, who left Apple in 2019 to form his own design firm, announced a joint venture with OpenAI to create a new generation of AI-powered consumer devices. The partnership was initially hailed as a potential rival to Apple’s product ecosystem, but it quickly drew scrutiny from Apple’s legal team.

Apple has long been protective of its intellectual property, and the company has a history of suing former employees who move to competitors. However, the involvement of a high-profile former executive like Tang Tan—who led Apple’s hardware engineering before leaving in 2023—has intensified the conflict. Tan is accused of using his deep knowledge of Apple’s internal processes to help OpenAI shortcut its hardware development timeline.

The iyO Lawsuit: A Precursor

This is not the first time OpenAI’s hardware ambitions have led to legal trouble. In late 2025, hardware startup iyO filed a lawsuit against OpenAI and io Products, alleging trademark infringement and trade secret misappropriation. The iyO lawsuit was later amended in March 2026 to include former Apple engineer Tang Tan as a defendant, claiming that a former iyO employee had downloaded confidential files and handed them over to Tan. OpenAI has also denied these allegations, and the iyO case remains pending.

The parallel legal battles highlight the high stakes in the race to develop AI hardware. Both Apple and iyO see OpenAI’s hardware efforts as a direct threat to their own products, and they are using legal means to slow down or cripple the startup’s progress. Legal analysts suggest that the outcomes of these cases could set important precedents for how trade secret laws apply to AI companies that aggressively recruit talent from established tech giants.

Broader Industry Implications

The Apple-OpenAI lawsuit is part of a larger trend of intellectual property disputes in the tech industry, as companies increasingly rely on litigation to protect their competitive advantages. Apple has a well-documented history of suing employees who leave to join rivals, including cases against former executives who moved to Google, Samsung, and other companies. However, the involvement of a high-profile AI startup like OpenAI makes this case particularly significant.

OpenAI’s rapid growth and its transformation from a nonprofit research lab to a for-profit company have made it a lightning rod for controversy. The company has faced multiple lawsuits over its use of copyrighted data for training AI models, and now it is dealing with allegations of hardware trade secret theft. These legal challenges could shape the future of AI development by forcing companies to adopt stricter data governance policies and employee onboarding procedures.

Meanwhile, Apple continues to dominate the consumer hardware market with products like the iPhone, MacBook, and Apple Watch. The company’s legal action against OpenAI is widely seen as an attempt to protect its market share from a potential new competitor. Apple has also been investing heavily in its own AI capabilities, including the development of a proprietary large language model and AI-powered features for its devices.

Key Figures and Their Roles

Chang Liu, one of the former Apple employees named in the lawsuit, worked as a hardware engineer on Apple’s supply chain team. According to the complaint, Liu downloaded thousands of files containing sensitive information about Apple’s manufacturing processes and shared them with OpenAI engineers during a series of meetings. Tang Tan, who served as Apple’s vice president of hardware engineering before leaving, is accused of using his insider knowledge to help OpenAI replicate Apple’s product development methodologies.

io Products, founded by Jony Ive and others, is the design partner for OpenAI’s hardware venture. The firm has kept its product plans largely secret, though rumors suggest it is working on an AI-powered wearable device that could compete with the Apple Watch. The partnership combines Ive’s renowned design sensibility with OpenAI’s cutting-edge AI technology, creating a formidable potential rival to Apple’s ecosystem.

OpenAI’s CEO Sam Altman has not commented directly on the lawsuit, but the company’s public posture suggests confidence in its legal position. Altman has previously stated that OpenAI takes intellectual property very seriously and has internal safeguards to prevent misuse of confidential information. However, the sheer number of allegations—from both Apple and iyO—raises questions about whether the company has been diligent enough in vetting its hires and partners.

What Comes Next

The legal process is expected to be lengthy, with both sides likely to engage in extensive discovery. Apple has demanded that OpenAI return all allegedly stolen materials and pay damages for unjust enrichment. OpenAI has not yet filed a formal answer, but it is expected to argue that the information in question was either publicly available or independently developed. The case could also involve third-party investigations into the data transfer and employee communications.

For now, the tech world is watching closely. The outcome of this lawsuit could affect not only the future of OpenAI’s hardware plans but also the broader dynamics of talent mobility and intellectual property in Silicon Valley. Companies may reconsider their hiring practices and data security protocols to avoid similar legal entanglements. Meanwhile, consumers are left wondering whether the AI-powered devices promised by OpenAI and Ive will ever reach the market, or if they will be stalled by a web of legal disputes.


Source:9to5Mac News


Share:

Your experience on this site will be improved by allowing cookies Cookie Policy