Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of engaging in a systematic campaign to steal trade secrets through former Apple employees. The suit, filed in the U.S. District Court for the Northern District of California, alleges that multiple former Apple staff members misappropriated confidential information to benefit OpenAI's hardware development efforts.

“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 lawsuit states. The filing names Tang Tan, former vice president of product design at Apple, and Chang Liu, a former senior system electrical engineer, as key defendants. OpenAI and io Products, a company founded by former Apple design chief Jony Ive, are also named as defendants.

Allegations of systematic theft

According to the complaint, Tan used his insider knowledge of Apple’s confidential projects to interrogate job candidates during interviews, demanding detailed information about unreleased products. The lawsuit claims Tan directed candidates still employed by Apple to bring actual hardware components — such as “CAD/design artifacts,” prototypes, and even physical parts — to their interviews for “show and tell” sessions. One candidate reportedly expressed surprise, saying he “didn’t even know we could take those from the office.”

Apple further alleges that Tan possessed and distributed an internal Apple “Need to Know” document to new OpenAI hires before they had even submitted their resignations. The document outlined Apple’s departure security protocols, which the company believes OpenAI employees intentionally worked to circumvent.

Chang Liu, who worked at Apple for eight years before joining OpenAI in January 2026, is accused of exploiting a security bug after leaving the company. Rather than reporting the vulnerability, Liu allegedly joked about it in messages (“LOL,” “so funny”). He also failed to return an Apple-issued laptop. The lawsuit details how Liu downloaded a “compilation of technical files with over a thousand pages” containing detailed manufacturing information about Apple’s complex circuit boards. He is also accused of coaching another Apple employee on which confidential materials to study before her own OpenAI interview.

Broader patterns and context

Apple says it first raised concerns directly with OpenAI in February, asking the company to investigate the alleged misconduct. OpenAI never responded, according to the filing. Apple claims the conduct detailed in the suit is only “the tip of the iceberg,” noting that over 400 former Apple employees now work at OpenAI. The company says it lacks full visibility into what happens behind closed doors at OpenAI.

The lawsuit comes as OpenAI accelerates its consumer hardware ambitions. The company acquired Jony Ive’s startup io for $6.5 billion last year, bringing on board more than 50 engineers, developers, and other staff. Ive, who served as Apple’s chief design officer for decades, co-founded io with Scott Cannon, Evans Hankey, and Tang Tan. Hankey led Apple’s design team after Ive’s departure and left Apple in 2022 before reuniting with Ive at io. Cannon also previously worked at Apple. Notably, the lawsuit does not name Ive, Hankey, or Cannon as defendants.

OpenAI’s hardware efforts have been the subject of widespread speculation. Analyst Ming-Chi Kuo has reported that OpenAI is developing its own smartphone, potentially launching in 2028. The Information has also reported on a HomePod-style smart speaker. The lawsuit could cast a shadow over these ambitions, as Apple seeks to protect its intellectual property and manufacturing know-how.

Specific incidents detailed in the complaint

The filing provides several concrete examples of alleged trade secret theft. In one instance, Tan used an internal Apple project codename to ask a job candidate, “What’s the plan?” for an unannounced Apple product. The candidate then began “screenshotting and downloading files relating to a highly confidential Apple project” hours before the interview. When the interview started, Tan solicited more details about that same project. Apple says this became an “established pattern.”

Apple also alleges that OpenAI used a trusted Apple partner to carry out proprietary metal-finishing techniques, misleading the partner into believing Apple had authorized the use. Additionally, OpenAI approached a second longtime Apple supplier that works on power and battery manufacturing, using insider terminology to ask “targeted questions” about specific Apple components. These actions, Apple claims, show a deliberate strategy to exploit its supply chain relationships.

The lawsuit seeks injunctive relief to prevent further disclosure or use of Apple’s trade secrets, as well as monetary damages. Apple asserts that OpenAI’s nascent hardware business now rests on information stolen from its former employees. The company states: “At every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information.”

Background of the parties involved

Tang Tan spent years at Apple as vice president of product design, overseeing the design of the iPhone and Apple Watch. He left Apple in February 2024 to join Jony Ive at io Products. Chang Liu worked at Apple for eight years as a senior system electrical engineer before moving to OpenAI in January 2026. The lawsuit highlights their unique positions: Tan’s deep knowledge of Apple’s design processes and Liu’s expertise in electrical engineering gave them access to highly sensitive information.

Apple’s relationship with OpenAI has been complex. In 2024, Apple announced a partnership to integrate ChatGPT into Siri, but the terms of that agreement are explicitly not at issue in this suit, according to Apple’s filing. However, the lawsuit comes after Bloomberg reported that OpenAI was preparing “legal action” against Apple over how the partnership played out. This latest development suggests tensions have escalated significantly.

The case is likely to have far-reaching implications for the tech industry, particularly as competition for top talent intensifies between Apple and companies working on artificial intelligence and hardware. Trade secret litigation often hinges on whether companies have adequate safeguards in place, and this case will test how far companies can go in recruiting employees from rivals without running afoul of the law.

Apple’s statement to the press underscores its stance: “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. Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products. We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so.”

As the legal process unfolds, the technology community will be watching closely. The outcome could reshape how companies handle intellectual property in an era of rapid AI development and cross-industry talent mobility. Apple’s allegations paint a picture of a coordinated effort to siphon off its crown jewels, while OpenAI has yet to formally respond to the claims in court. The full filing is available for public review, and observers expect a vigorous defense from OpenAI and the named individuals.

Source:9to5Mac News