Apple sues OpenAI and two former employees for alleged trade secret theft
Apple alleges that OpenAI orchestrated a scheme to extract confidential hardware and supplier data through former employees. The suit follows failed attempts to resolve the dispute privately.
Apple has filed a lawsuit against OpenAI, alleging that the artificial intelligence company and two of its former employees stole trade secrets to advance its hardware ambitions. The legal action, filed in the U.S. District Court for the Northern District of California, accuses OpenAI of orchestrating a systematic effort to extract confidential information from Apple, including details about unreleased products, manufacturing techniques, and supplier relationships. The case also names OpenAI’s Chief Hardware Officer, Tang Yew Tan, and former Apple engineer Chang Liu, both of whom are alleged to have facilitated the alleged theft.
The lawsuit centers on allegations that Tan, who spent 24 years at Apple before joining OpenAI in 2025, used his insider knowledge to direct job candidates to bring Apple hardware components to interviews for “show and tell” sessions. These sessions, according to Apple, were designed to elicit confidential information about unannounced products. Tan is also accused of emailing himself details about Apple’s suppliers and encouraging candidates to disclose information about Apple’s internal processes. Liu, who worked at Apple for eight years before moving to OpenAI, allegedly failed to return an Apple-issued laptop and accessed confidential files, including technical specifications and engineering presentations, after joining the AI firm.
Apple claims the misconduct extends beyond individual employees, asserting that OpenAI institutionalized the collection of trade secrets to accelerate its hardware development. The lawsuit highlights the acquisition of io Products, a hardware startup founded by Apple’s former design chief Jony Ive, which OpenAI purchased in 2025 for $6.5 billion. This move, Apple argues, positioned OpenAI as a direct competitor in consumer electronics, with plans to develop AI-powered devices that could challenge Apple’s dominance in smartphones and wearables. The complaint states that OpenAI’s hardware business “now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”
The legal battle marks a dramatic escalation in tensions between Apple and OpenAI, which had previously partnered in 2024 to integrate ChatGPT into Apple’s Siri and Apple Intelligence systems. However, the relationship soured as Apple expanded its collaboration with Google’s Gemini AI and OpenAI pursued its own hardware strategy. Apple’s lawsuit also references a broader pattern of talent poaching in the tech industry, where companies compete to recruit top engineers and designers. The complaint notes that more than 400 former Apple employees are now employed by OpenAI, though it does not specify whether all of them were involved in the alleged misconduct.
Apple’s legal team emphasized that the company had raised concerns with OpenAI earlier in 2026, sending a letter in February to address the “troubling evidence” of trade secret theft. The letter reportedly went unanswered, prompting Apple to take legal action. The lawsuit seeks damages, a preliminary injunction to block OpenAI from using stolen information, and the return of Apple’s confidential materials. It also alleges that OpenAI’s practices violated the Defend Trade Secrets Act and breached intellectual property agreements.
OpenAI has denied the allegations, with a spokesperson stating, “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.” The company has faced prior scrutiny over copyright infringement and safety concerns, including a lawsuit from a mother who claimed interactions with its chatbot contributed to her daughter’s death. However, the latest suit could complicate OpenAI’s efforts to go public, as the AI firm has been exploring a potential initial public offering.
The case underscores the growing legal and ethical challenges in the AI industry, where competition for talent and intellectual property is intensifying. Apple’s actions reflect a broader trend of tech giants prioritizing the protection of their innovations, even as they navigate complex partnerships and rivalries. For OpenAI, the lawsuit represents a significant hurdle as it seeks to expand beyond software into hardware, a move that could redefine the competitive landscape of consumer technology.
