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Industry · Jul 13, 2026

Apple sues OpenAI alleging systematic trade secret theft by former employees and io

Apple alleges OpenAI exploited authentication bugs, coached hires to evade security, and recruited over 400 former Apple staff, including io’s former employees, to misappropriate industrial design and supply-chain secrets.

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TL;DR
  • Apple filed a 41-page complaint alleging OpenAI orchestrated a pattern of trade secret theft involving former Apple employees and io, a hardware design firm acquired by OpenAI.
  • Allegations include exploiting an authentication bug to access Apple’s network storage, coaching departing employees to avoid Apple’s security procedures, and recruiting job candidates to bring Apple hardware and design artifacts to interviews.
  • Apple claims OpenAI used internal Apple terminology to ask targeted questions to suppliers and alleges io misled partners about Apple’s permission to use a confidential metal-finishing technique.
  • Apple says it first raised concerns with OpenAI in February but received no response before filing suit.

Apple’s 41-page complaint, filed on July 11, 2026, alleges that OpenAI orchestrated a coordinated effort to extract confidential information from current and former Apple employees, including leadership-directed misconduct. The lawsuit names OpenAI and io, a hardware design company acquired by OpenAI in a $6.5 billion deal last year, as defendants.

Among the allegations, Apple claims that Chang Liu, a former senior systems electrical engineer at Apple who later joined OpenAI, sent a message saying, “LOL, I found out I can access the [network storage], so funny,” to Yu-Ting “Alyssa” Peng, an Apple employee who allegedly served as a conduit between Apple and OpenAI. Apple alleges Liu accessed its systems by exploiting an authentication bug from Peng’s Apple-issued work computer. Within hours of leaving Apple, Liu allegedly texted, “I still have another computer,” which Apple says was a reference to another Apple computer he planned to use to access Apple’s confidential information.

Apple also alleges that OpenAI’s chief hardware officer, Tang Yew Tan—who spent 24 years at Apple, most recently as VP of product design for iPhone and Apple Watch—directed job candidates working at Apple to bring “actual parts” from Apple to OpenAI interviews for “show and tell sessions.” Apple claims one candidate was surprised by the request, saying he didn’t even realize Apple parts could be taken out of the office. Employees were also allegedly instructed to bring “CAD/design artifacts” and “prototypes” to interviews.

The complaint further alleges that OpenAI coached departing Apple employees on how to evade Apple’s security procedures to reduce the chance their alleged trade secret theft would be caught. Apple claims OpenAI circulated an internal Apple document marked “Need to know” to new hires with details on how to avoid the “dreaded walkout,” which would immediately remove them from Apple after giving notice. OpenAI allegedly advised departing employees to let OpenAI know “asap” if Apple asked them to sign anything at an exit interview and not to sign.

Apple alleges that over 400 former Apple employees now work at OpenAI, a figure it uses to suggest the potential scale of the misappropriation. The complaint also names io, a company founded by former Apple employees including Jony Ive, which OpenAI acquired for $6.5 billion. Apple alleges io used Apple’s confidential industrial design techniques, including a “confidential metal-finishing technique,” by misleading Apple’s partner into believing it had Apple’s permission. Apple further alleges OpenAI approached a supplier using Apple’s confidential information about design and components related to power and batteries, using “internal terminology” that only Apple insiders would know.

Apple states it first attempted to contact OpenAI in February 2026 to raise its concerns but received no response. OpenAI publicly responded via a statement on X, saying, “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”

Sources
  1. 01TechCrunch — AIThe wildest allegations in Apple’s trade secrets lawsuit against OpenAI
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