Apple filed a lawsuit against OpenAI today, accusing the artificial intelligence company of orchestrating a scheme to steal Apple's trade secrets. The complaint, filed in the U.S. District Court for the Northern District of California, alleges that former Apple employees Tang Tan and Chang Liu systematically misappropriated confidential information for the benefit of OpenAI. Apple asserts that this conduct is part of a broader pattern of intellectual property theft that has allowed OpenAI to build its nascent hardware business.
Key Allegations Against Tang Tan and Chang Liu
Tang Tan, who served as Vice President of Product Design at Apple, led the design of the iPhone and Apple Watch. He left the company in February 2024 to join Jony Ive's design firm, io Products, which was later acquired by OpenAI in a $6.5 billion deal. According to the lawsuit, Tan used his insider knowledge of Apple's unannounced projects to interrogate job candidates still working at Apple. The complaint states that Tan asked candidates about a specific internal project codename and directed them to bring actual Apple hardware components and prototypes to interviews for “show and tell” sessions. One candidate reportedly expressed surprise, saying he “didn’t even know we could take those from the office.”
Chang Liu, a senior system electrical engineer who worked at Apple for eight years, left the company in January 2026 to join OpenAI. Apple alleges that Liu exploited a security bug to download confidential engineering files after resigning, joking about the exploit in messages with colleagues. Liu is also accused of failing to return an Apple-issued laptop and coaching another Apple employee on which confidential materials to study before her interview with OpenAI. The lawsuit details that Liu downloaded a compilation of over a thousand pages of technical files, including detailed manufacturing documents for complex circuit boards used in Apple hardware.
Broader Pattern of Misconduct
The lawsuit highlights what Apple calls “the tip of the iceberg.” Apple claims that over 400 former employees now work at OpenAI, and that the company has engaged in a systematic effort to extract confidential information through interviews and supplier contacts. Specifically, Apple alleges that OpenAI instructed job candidates to bring “CAD/design artifacts” and “prototypes” and to divulge details about subsystem selection, integration tools, and vendor relationships. One candidate began screenshotting and downloading files about a highly confidential Apple project just hours before interviewing with Tan.
Furthermore, Apple states that Tan possessed and distributed an internal Apple “Need to Know” document outlining departure security protocols to new OpenAI hires before they gave notice to Apple. This document was used to circumvent security processes designed to protect Apple's confidential information. Apple also alleges that OpenAI had a trusted Apple partner 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 that works on power and battery manufacturing, using insider terminology to ask targeted questions about specific Apple components.
Jony Ive and OpenAI's Hardware Ambitions
The case centers significantly on the involvement of Jony Ive, Apple's former chief design officer. After leaving Apple in 2019, Ive founded io Products with Scott Cannon, Evans Hankey, and Tang Tan. Evans Hankey led Apple's design team for several years before departing in 2022 and reuniting with Ive. Scott Cannon also previously worked at Apple. OpenAI acquired io Products in 2025, bringing in more than 50 engineers to spearhead its hardware efforts. Although Ive, Hankey, and Cannon are not personally named in the initial filing, their presence looms large over the allegations.
OpenAI's hardware strategy has been the subject of intense speculation. Analyst Ming-Chi Kuo reported that OpenAI is developing its own smartphone, potentially launching in 2028, while The Information has detailed work on a HomePod-style smart speaker. The lawsuit comes as OpenAI works to bring its first consumer hardware device to market, making the intellectual property allegations particularly damaging. Apple's complaint seeks injunctive relief to prevent further misuse of its trade secrets and monetary damages.
Background of the Dispute
Apple's relationship with OpenAI has been complex. The two companies previously partnered to integrate ChatGPT into Siri, but that agreement is explicitly not at issue in the lawsuit. Apple first raised concerns with OpenAI directly in February 2026, asking the company to investigate and address the alleged misconduct. According to the lawsuit, OpenAI never responded. The complaint paints a picture of a company that has normalized trade secret theft as part of its corporate culture. Apple argues that the actions of Tan, Liu, and others are not isolated incidents but part of a deliberate strategy to accelerate OpenAI's hardware development by co-opting Apple's years of research and innovation.
Trade secret law is a critical area of intellectual property protection, especially in the technology sector. Apple has a long history of fiercely guarding its confidential information, and the company has pursued legal action in the past against former employees who leaked or misappropriated data. The company's culture of secrecy is legendary, with strict security protocols and a need-to-know basis for even senior engineers. The lawsuit alleges that OpenAI exploited weaknesses in those protocols, including a security bug that allowed Liu to download files after his departure.
The case also highlights the growing tension between established tech giants and the fast-moving AI industry. OpenAI, which has attracted top talent from companies across Silicon Valley, faces increasing scrutiny over its hiring practices. The lawsuit could set a precedent for how courts treat the movement of employees between companies, particularly when they bring confidential information about unreleased products. Legal experts note that proving trade secret misappropriation requires evidence that the information was secret, valuable, and improperly obtained—elements that Apple claims to have in abundance.
Implications for the Tech Industry
If Apple's allegations are proven, OpenAI could face significant damages and an injunction that disrupts its hardware plans. The lawsuit also puts other tech companies on notice about the risks of hiring from competitors without adequate safeguards. Apple's decision to file suit now, as OpenAI prepares to launch its first consumer device, underscores the high stakes involved. The case is likely to attract widespread attention as it progresses through the courts, with potential implications for how companies protect their intellectual property in an era of intense competition for engineering talent.
The complaint details a pattern of behavior that Apple claims is systematic. From instructing candidates to bring prototypes to using insider terminology with suppliers, the allegations suggest a coordinated effort to obtain Apple's trade secrets. Apple's request for injunctive relief, if granted, could halt OpenAI's hardware development until the case is resolved. Meanwhile, OpenAI has not yet issued a public response, though the company has previously defended its hiring practices. The lawsuit marks a significant escalation in the rivalry between the two companies, which had previously maintained a cooperative relationship.
Source:9to5Mac News