Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of trade secret theft. The complaint, filed in the U.S. District Court for the Northern District of California, alleges that former Apple employees stole sensitive intellectual property for the benefit of OpenAI. This legal action marks a significant escalation in tensions between the two tech giants, which have previously collaborated on integrating ChatGPT into Siri but now face off over allegations of corporate espionage.

According to the lawsuit, “This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI. Apple brings this suit to put a stop to it.” The company claims that the misconduct involves some of its most confidential projects, including unreleased hardware technologies and manufacturing processes. An Apple spokesperson told media that “significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products.”

Key Defendants: Tang Tan and Chang Liu

The lawsuit specifically names Tang Tan and Chang Liu as central figures. Tang Tan served as Apple’s Vice President of Product Design, overseeing the design of the iPhone and Apple Watch. He left Apple in February 2024 to join Jony Ive, Apple’s former chief design officer, at Ive’s startup io Products. OpenAI later acquired io in a $6.5 billion deal, absorbing over 50 engineers and designers. Chang Liu, a senior system electrical engineer at Apple for eight years, departed in January 2026 to join OpenAI. Apple alleges that both men exploited their insider access to benefit their new employer.

Apple’s complaint details how Tan used his knowledge of internal Apple projects to interrogate job candidates. The suit states, “When interviewing Apple employees for jobs at OpenAI, Mr. Tan uses Apple’s confidential information to gain access to even more insider knowledge. He has used an Apple internal project codename to ask, ‘What's the plan?’ for an unannounced Apple product.” Additionally, Tan allegedly directed candidates still working at Apple to bring physical components to interviews for “show and tell” sessions, an instruction that surprised at least one candidate who remarked he “didn't even know we could take those from the office.”

Systematic Theft of Trade Secrets

The lawsuit paints a picture of a systematic effort to extract proprietary information. Apple says that OpenAI instructed Apple employees to bring “CAD/design artifacts” and “prototypes” to interviews, along with details about vendor selection, subsystem integration, and tooling. In one instance, a candidate began “screenshotting and downloading files relating to a highly confidential Apple project” hours before an interview with Tan, who then solicited more information about that same project during the interview. Apple says this became an “established pattern.”

Tan is also accused of possessing and distributing an internal Apple “Need to Know” document to new OpenAI hires before they gave notice to Apple. The document detailed Apple’s departure security protocols. Apple’s investigation found a “pattern by employees who depart for OpenAI of taking steps to evade the security processes intended to protect Apple's confidential information.”

Meanwhile, Chang Liu allegedly exploited a security bug to download confidential engineering files after leaving the company. Rather than report the vulnerability, Liu reportedly joked about it in messages (“LOL,” “so funny”). He also failed to return an Apple-issued laptop. Apple claims that Liu downloaded a “compilation of technical files with over a thousand pages” covering detailed manufacturing documents for complex circuit boards used in Apple hardware. Furthermore, Liu coached another Apple employee he was recruiting to OpenAI on which confidential materials to study before her interview.

Involvement of Suppliers and Third Parties

Apple also alleges that OpenAI used a trusted Apple partner to carry out Apple’s proprietary metal-finishing technique, misleading the partner into believing it had Apple’s permission. Additionally, OpenAI approached a second longtime Apple supplier working on power and battery manufacturing, using insider terminology to ask “targeted questions” about specific Apple components. These actions suggest that OpenAI was not only recruiting Apple employees but also attempting to replicate Apple’s manufacturing processes.

Apple says it first raised concerns directly with OpenAI in February, requesting an investigation. OpenAI never responded. The company states that the conduct described in the filing is “the tip of the iceberg,” and that it lacks visibility into what is happening behind closed doors at OpenAI, where such misconduct is “normalized and exemplified by leadership.”

Background: Jony Ive and OpenAI’s Hardware Ambitions

The lawsuit comes as OpenAI works to bring its first consumer hardware device to market. Rumors have circulated about OpenAI developing a smartphone, possibly launching in 2028, and a HomePod-style smart speaker. The company’s hardware efforts are led by Jony Ive, who co-founded io Products with Scott Cannon, Evans Hankey, and Tang Tan. Hankey led Apple’s design team after Ive left, and Cannon also previously worked at Apple. Notably, Ive, Hankey, and Cannon are not personally mentioned in Apple’s initial filing.

The deeper context involves Apple’s famously secretive corporate culture. For decades, Apple has fiercely protected its intellectual property, filing lawsuits against former employees who join competitors. This case echoes earlier disputes, such as the one against former chip designer Gerard Williams III, who left to found Nuvia. Apple’s complaint notes that over 400 former Apple employees now work at OpenAI, a statistic that underscores the talent drain the company faces as AI and hardware startups grow.

OpenAI’s acquisition of io Products in 2025 for $6.5 billion brought together a team with deep Apple roots. The original announcement touted that Ive founded io in collaboration with Scott Cannon, Evans Hankey, and Tan. This concentration of ex-Apple talent has likely exacerbated tensions, as Apple watches its former executives build a competing hardware ecosystem.

Legal Implications and Industry Reaction

The lawsuit seeks injunctive relief and damages, though specific dollar amounts are not disclosed. Apple also requests that the court order OpenAI to return any stolen materials and prevent further use of its secrets. The case is likely to hinge on whether the information taken qualifies as trade secrets and whether OpenAI had knowledge of the alleged theft. Apple’s detailed allegations—including screenshots, files, and witness statements—provide substantial evidence.

Industry observers note that this lawsuit could have far-reaching consequences for talent mobility in Silicon Valley. Non-disclosure agreements and trade secret laws already restrict what employees can take from one company to another, but this case may set a precedent for how aggressively companies can pursue former employees and their new employers. OpenAI has not yet filed a formal response, but past statements suggest it will argue that the information was either not secret or was obtained legitimately.

It is worth noting that Apple’s lawsuit follows a Bloomberg report that OpenAI was preparing “legal action” against Apple over how their partnership to integrate ChatGPT into Siri played out. However, today’s filing explicitly states that the partnership agreement is not at issue here. The two companies’ relationship remains complex, combining cooperation in AI with fierce competition in hardware.

As the case proceeds, the tech world will watch closely to see how this legal battle affects OpenAI’s hardware launch timeline and Apple’s efforts to retain its top talent. For now, Apple’s message is clear: it will defend its intellectual property with all available legal means, regardless of the size or reputation of the opposing party.

Source:9to5Mac News