Apple has filed a sweeping lawsuit against OpenAI, accusing the artificial intelligence company of systematically stealing trade secrets related to its hardware operations. The legal action, filed in federal court, alleges that OpenAI and its executives have engaged in a coordinated effort to pilfer proprietary information from Apple by hiring former employees who then took confidential data with them.
According to the complaint, Apple has uncovered a pattern of theft involving engineers who previously worked at Apple and are now employed by OpenAI. The lawsuit names two specific individuals: Tang Tan, who serves as OpenAI's chief hardware officer, and Chang Liu, who left Apple in January to join the AI firm. Additionally, the complaint targets IO Products, a hardware startup founded by former Apple design chief Jony Ive, which OpenAI acquired in 2025.
The Allegations Against Chang Liu
Apple alleges that Chang Liu accessed its internal systems after leaving the company and downloaded dozens of confidential hardware-related files. These files included detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data. The company claims Liu's actions were deliberate and in direct violation of his post-termination contractual obligations.
More troubling, according to Apple, is that Liu instructed a former Apple colleague on how to copy confidential files and evade the company's security team. He allegedly advised her to use the encrypted messaging app Line Messenger to avoid detection. Apple asserts that Liu's behavior was part of a broader scheme to funnel Apple's intellectual property to OpenAI.
Tang Tan's Alleged Misconduct
Tang Tan, now OpenAI's chief hardware officer, is accused of emailling information about Apple suppliers to himself before leaving the company. Apple also claims that Tan solicited confidential Apple information during job interviews with current Apple employees who were considering positions at OpenAI. The suit describes Tan's actions as a methodical attempt to use Apple's trade secrets for the benefit of his new employer.
Systematic Effort to Replicate Apple's Hardware Business
Apple's complaint paints a picture of a coordinated campaign by OpenAI to replicate the iPhone maker's hardware success. The company alleges that OpenAI instructed Apple staffers to bring items like CAD design artifacts and prototypes to job interviews. Apple accused OpenAI of engaging in a systematic effort to acquire, retain, and use Apple's trade secrets to help the AI startup try to replicate the secret technologies, business processes, and supply chain innovations that took Apple decades to build.
Furthermore, Apple claims OpenAI has directly targeted its prized partner network and supply chain. One allegation involves an Apple partner that works on industrial design and metal-finishing techniques; Apple says OpenAI had this partner perform Apple's proprietary processes for its own benefit.
Scale of the Alleged Theft
According to the lawsuit, more than 400 former Apple employees now work at OpenAI. Apple accuses OpenAI of advising departing Apple staffers to let the company know if Apple personnel ask them to sign any documents, suggesting an intentional effort to circumvent legal agreements. Apple says it reached out to OpenAI in February to raise concerns and ask what the company was doing to investigate. The lawsuit states that OpenAI never responded.
OpenAI denied the allegations in a statement provided to media outlets. Drew Pusateri, an OpenAI spokesperson, said, We have no interest in other companies trade secrets. We remain focused on building innovative technology that empowers people everywhere. Apple did not immediately respond to a request for comment at the time of the filing.
The case highlights the intense competition between Apple and OpenAI as both companies push into new hardware territory. OpenAI is expected to release its first hardware product next year, though Apple has cast doubt on the venture's legitimacy. In the lawsuit, Apple argues that OpenAI's nascent hardware business rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.
Broader Implications for the Tech Industry
This lawsuit underscores the growing tensions between technology giants as they compete for talent and intellectual property. Apple has historically been aggressive in protecting its trade secrets, often filing lawsuits against former employees who join competitors. The case also brings attention to the role of Jony Ive, the legendary designer who left Apple in 2019 to form LoveFrom, which later evolved into IO Products. OpenAI's acquisition of Ive's hardware startup signaled a major push into physical products, potentially rivaling Apple's ecosystem.
The allegations, if proven, could have significant consequences for OpenAI's hardware ambitions. Legal experts note that trade secret misappropriation cases can result in hefty damages and injunctions that block the use of stolen information. Apple's complaint seeks an injunction to prevent OpenAI from using the alleged trade secrets and demands monetary damages.
As the case unfolds, it will likely shape how companies manage talent mobility and protect sensitive information in an era where AI and hardware are increasingly intertwined. The outcome may also affect OpenAI's ability to attract top engineering talent from Apple, given the heightened scrutiny.
Source: The Verge News