Apple Sues OpenAI, Alleging Former Employees Stole Confidential Hardware Trade Secrets

Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company and two former Apple employees of misappropriating confidential hardware information to accelerate OpenAI’s consumer hardware ambitions.

The lawsuit, filed in the U.S. District Court for the Northern District of California, names OpenAI, io Products, former Apple executive Tang Tan, and former Apple engineer Chang Liu as defendants. Apple alleges the group engaged in “a pattern of theft” involving confidential information related to unreleased products, engineering processes, manufacturing techniques, and proprietary hardware development.

Apple Alleges a Coordinated Pattern of Trade Secret Theft

As reported by The Verge, according to the complaint, Apple first raised concerns with OpenAI in February and asked the company to investigate the alleged misconduct. Apple claims it never received a response.

The lawsuit alleges that former Apple employees downloaded confidential engineering documents, manufacturing specifications, and proprietary project files before or shortly after leaving the company. Apple also claims some employees attempted to bypass internal security procedures designed to protect sensitive information.

“This case is about Apple’s former employees stealing Apple’s trade secrets for the benefit of OpenAI,” the complaint states.

Apple further alleges that the behavior represents “the tip of the iceberg,” claiming it has identified a broader pattern involving former employees who later joined OpenAI.

Former Apple Employees Named in the Suit

Among the named defendants is Tang Tan, Apple’s former Vice President of Product Design who helped oversee iPhone and Apple Watch hardware before leaving the company in 2024 to join Jony Ive’s hardware startup, io Products. OpenAI acquired io Products in a reported $6.5 billion deal in 2025, bringing Tan and more than 50 engineers into the company.

The lawsuit also names Chang Liu, a former senior systems electrical engineer who worked at Apple for eight years before joining OpenAI earlier this year.

Apple alleges Liu continued accessing Apple systems after his departure by exploiting a security vulnerability, downloading confidential hardware files that included engineering presentations, manufacturing documentation, technical specifications, and proprietary project data.

The company also claims Liu instructed another Apple employee on how to copy confidential files and avoid detection before leaving for OpenAI.

Allegations Extend Beyond Downloaded Files

Apple’s complaint alleges OpenAI recruiters, including Tan, encouraged Apple employees interviewing for positions to bring confidential hardware components, prototypes, CAD files, and other proprietary materials to interviews.

According to the filing, Tan allegedly questioned candidates using internal Apple project codenames and requested “actual parts” for “show and tell” sessions to obtain additional information about unreleased products.

Apple also claims OpenAI used confidential supplier information to approach longtime Apple manufacturing partners and requested work involving proprietary production techniques without Apple’s authorization.

The lawsuit notes that more than 400 former Apple employees now work at OpenAI, although only Tan and Liu are individually named as defendants.

OpenAI Denies the Allegations

As reported by 9To5Mac, earlier today OpenAI denied Apple’s claims.

In a statement shared to X by Director of Strategic Communications Drew Pusateri, the company said:

“We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”

Apple, meanwhile, said protecting its intellectual property remains a priority.

“At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously,” an Apple spokesperson said in a statement.

Legal Dispute Comes as OpenAI Expands Into Hardware

The lawsuit arrives as OpenAI continues developing its first generation of consumer hardware products following its acquisition of io Products, the startup founded by former Apple Chief Design Officer Jony Ive.

Apple is seeking damages as well as injunctive relief to prevent any continued use of its alleged trade secrets. The company argues the confidential information forms the foundation of OpenAI’s emerging hardware business.

The case also follows earlier legal disputes surrounding OpenAI’s hardware efforts, including separate trade secret allegations brought by hardware startup iyO earlier this year.

As OpenAI moves closer to entering the consumer hardware market, the lawsuit highlights the increasing competition surrounding the development of next-generation AI devices and the value of the proprietary technology behind them. For now, the allegations remain unproven, and the case will now move through the legal process as both companies defend their positions.

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