Apple's Lawsuit Against OpenAI: Six Major Claims of Trade Secret Theft

Apple's Lawsuit Against OpenAI: Six Major Claims of Trade Secret Theft

Apple has filed a sweeping 41-page lawsuit against OpenAI, accusing the artificial intelligence company of systematically stealing confidential documents, spying on hardware prototypes, and deceiving one of Apple's trusted manufacturing partners into sharing a proprietary metal-finishing technique. The complaint centers on the alleged actions of three former Apple employees who now work at OpenAI, as the AI startup prepares to launch its first hardware device next year.

Three Former Apple Employees at the Center of the Dispute

The lawsuit primarily revolves around three individuals. Tang Tan, a 24-year Apple veteran who served as vice president of the Apple Watch, left the company in 2024 to join Jony Ive's hardware company, io. OpenAI acquired io last year and subsequently appointed Tan as its chief hardware officer.

Chang Liu, a former systems electrical engineer who worked on the iPhone for more than eight years, joined OpenAI in January 2026 as a member of technical staff. Yu-Ting "Alyssa" Peng, another former Apple employee, followed Liu to OpenAI in April 2026. Apple alleges that all three participated in an ongoing scheme to misappropriate the company's trade secrets as OpenAI develops its first AI hardware device.

Confidential Files Accessed and Downloaded After Departure

According to the complaint, Liu failed to respond to Apple's standard offboarding requests after announcing his departure, including signing a confidentiality reminder, scheduling an exit interview, and confirming the return of company-owned devices. Apple claims Liu retained at least one Apple-owned computer and informed Peng that he still possessed "another computer."

The lawsuit further alleges that Liu accessed Apple's cloud-based network storage weeks after his departure by exploiting an authentication vulnerability previously unknown to Apple. Apple cites messages in which Liu reportedly celebrated the discovery with Peng, writing that he found he could access the network storage and found it "so funny," to which Peng allegedly responded, "I'm ready."

Apple accuses Liu of downloading dozens of confidential files, including technical specifications, details about unreleased products, and engineering presentations. One such document reportedly detailed the manufacturing and testing of Apple's main logic boards.

Information Pipeline and Interview Tactics

Following Liu's departure, Peng allegedly maintained a steady flow of confidential Apple information to him, keeping him informed about projects, engineering details, and vendor relationships. Apple claims these exchanges directly informed Liu's hardware development work at OpenAI. The company also alleges that Liu instructed Peng on how to access and copy files from Apple's devices while avoiding detection by the security team, directing her to specific project folders and proprietary engineering data.

The lawsuit further accuses Tan of soliciting Apple's trade secrets during job interviews with current Apple employees. Apple claims that Liu informed Peng about a former colleague who struggled to answer Tan's questions about a top-secret unreleased Apple product, and that Liu subsequently downloaded information using his network access to help Peng prepare for her own interview.

In another instance, Apple alleges that a former employee began screenshotting and downloading files related to a highly confidential project before an OpenAI interview, during which Tan reportedly asked for more details about that same project. Tan had previously admitted to receiving confidential information about an AI hardware startup before joining Ive's company io.

Apple also claims that Tan instructed interviewees to bring Apple hardware components for "show and tell sessions," specifically requesting items such as batteries, Systems-in-Package, main logic boards, and shields. OpenAI is additionally accused of asking candidates to prepare "Technical Deep Dive" presentations with slides containing confidential information from their Apple work.

Coaching Employees to Bypass Security and Misleading Partners

Apple alleges that OpenAI maintained an internal document outlining Apple's employee offboarding procedures and used this knowledge to coach departing Apple workers on evading security checks. The lawsuit claims OpenAI advised employees not to disclose their new employer, offered tips on avoiding a "dreaded walk out" that would cut off system access, and instructed them not to sign anything at exit interviews.

Apple says these tactics appear to be working, noting a recent trend of employees leaving for OpenAI while taking steps to evade security measures, including ignoring outreach from security personnel.

The complaint also accuses OpenAI of using stolen confidential information to approach Apple's trusted partners. In one case, OpenAI allegedly misled a partner that performs a proprietary multi-step metal-finishing technique for Apple into believing it had Apple's permission to use the process. Apple states it has not granted OpenAI or io any such permission or license.

OpenAI is also accused of approaching at least one other supplier involved in Apple's power and battery manufacturing, using confidential information and internal codenames to ask targeted questions about Apple's components.

OpenAI spokesperson Drew Pusateri provided a statement in response: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."

As this legal battle unfolds, the outcome could have significant implications for the rapidly growing AI hardware sector and the boundaries of competition between tech giants. What do you think about these allegations? Share this article and join the conversation.

Source: The Verge AI