Tech Giants Collide: Apple Unleashes Lawsuit Against OpenAI Over Trade Secret Theft

Apple has initiated legal action against OpenAI, filing a lawsuit on Friday that levies serious allegations of trade secret theft and breach of contract. The tech giant claims this misconduct represents a systemic pattern of theft by former Apple employees now at OpenAI, orchestrated by senior leadership, notably Chief Hardware Officer Tang Tan.

The lawsuit, lodged in the U.S. District Court for the Northern District of California, specifically accuses Tan of several egregious acts. These include utilizing Apple's confidential project code names during OpenAI's recruitment processes, soliciting Apple hardware components from job candidates during interviews, advising departing Apple employees on how to circumvent company security protocols, and seeking detailed information regarding Apple's unannounced products. Prior to joining OpenAI, Tang Tan had a distinguished 24-year career at Apple, culminating in his role as VP of product design for the iPhone and Apple Watch.

These accusations emerge amidst rumors of OpenAI venturing into its first hardware product, which analysts like Ming-Chi Kuo have suggested could be an AI-agent-powered smartphone, posing a significant threat to Apple's core hardware business. OpenAI's acquisition of Jony Ive's device startup io for $6.5 billion last year was reportedly aimed at bolstering its hardware ambitions; while io is mentioned in the filing, Ive is not directly implicated.

The complaint extends beyond Tang Tan, also implicating Chang Liu, a former Apple senior systems electrical engineer. Liu, who spent eight years at Apple, is accused of failing to return an Apple-issued laptop upon his departure for OpenAI in 2026 (likely a typo in the original text, assumed to be a past event or a near future event in the context of the lawsuit already filed) and using the device to download confidential Apple technical documents. These stolen documents, according to Apple, contained information on unannounced technologies, features, and products, including technical specifications, engineering presentations, and proprietary project data. Furthermore, Liu is accused of sharing Apple's confidential information with other Apple employees applying for positions at OpenAI, allegedly coaching at least one on interview preparation.

Apple stated that it raised its concerns with OpenAI in February via a letter but received no response. The company alleges that the actions of these former employees are part of a broader strategy by OpenAI to extract Apple's confidential information, which included requests for Apple employees to bring designs and prototypes to interviews and answer questions about critical processes like component and vendor selection. Apple's ongoing investigation reportedly uncovered evidence that OpenAI and its partners have utilized Apple's confidential information in developing OpenAI's own hardware product. One instance cited in the filing details OpenAI's alleged use of a proprietary metal finishing technique after misleading a partner into believing it had Apple's permission to do so.

To uncover the full extent of the alleged operation, Apple is pursuing legal discovery. The company is seeking court orders to prohibit OpenAI from using or disclosing its trade secrets, mandate the return of all confidential Apple materials, and ensure the preservation of all relevant evidence. Apple's filing emphatically 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." It concludes that "OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."

In a prepared statement, Apple reiterated its commitment to protecting its teams' work and intellectual property, affirming that it takes the matter very seriously. OpenAI, in response to requests for comment, issued a public statement on X, asserting, "We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere."