Apple sues OpenAI alleging trade secret theft by former employees

Apple filed a lawsuit in the U.S. District Court for the Northern District of California alleging that OpenAI and its senior leadership orchestrated a pattern of trade secret theft involving former Apple employees. The complaint accuses OpenAI’s Chief Hardware Officer Tang Tan—who previously spent 24 years at Apple, most recently as VP of product design for the iPhone and Apple Watch—of directing misconduct during OpenAI’s recruiting process. Apple alleges Tan asked job candidates to bring Apple hardware components to interviews, coached departing Apple employees on evading company security procedures, and solicited details about unannounced Apple products.

The lawsuit also names Chang Liu, a former Apple senior systems electrical engineer who joined OpenAI in 2026, alleging he failed to return an Apple-issued laptop and used it to download confidential Apple technical documents. Apple claims these documents included unreleased technologies, engineering presentations, and proprietary project data. Liu is further accused of sharing Apple’s confidential information with other Apple employees applying to OpenAI and advising them on interview preparation using Apple’s internal materials.

Apple alleges OpenAI’s alleged misconduct extended beyond individual employees to its broader hardware strategy. The company claims OpenAI and its partners used Apple’s confidential information—including a proprietary metal finishing technique—after allegedly misleading a partner into believing Apple had granted permission. Apple states its ongoing investigation revealed OpenAI’s hardware development relied on misappropriated trade secrets.

In February 2026, Apple sent a letter to OpenAI raising concerns about the alleged theft, but said it received no response. The company is now seeking court intervention to bar OpenAI from using or disclosing Apple’s trade secrets, require the return of all confidential materials, and preserve evidence. Apple’s filing asserts that the alleged misconduct is part of a normalized culture at OpenAI, stating, 'OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.'

OpenAI responded with a public statement on X denying interest in other companies’ trade secrets and reaffirming its focus on building innovative technology. The lawsuit follows OpenAI’s reported ambitions to develop its first hardware product, which industry analyst Ming-Chi Kuo suggested could be an AI agent–reliant smartphone that would compete with Apple’s iPhone. Apple’s acquisition of Jony Ive’s device startup io for $6.5 billion last year was also referenced in the filing, though Ive was not named.