Apple Sues OpenAI Over Alleged Theft of Hardware Trade Secrets

Apple has initiated legal proceedings against OpenAI, accusing the artificial intelligence company of systematically acquiring its confidential trade secrets through former employees. The complaint describes what Apple characterizes as a sustained effort by individuals who previously worked at the iPhone maker to wrongfully obtain proprietary information about unreleased technologies and products.

The lawsuit names several defendants, including IO Products, the hardware startup founded by Jony Ive that OpenAI acquired in 2025. Also named are Tang Tan, who serves as OpenAI's chief hardware officer, and Chang Liu, a former Apple employee who transitioned to OpenAI in January.

Allegations Against Chang Liu

According to Apple's filing, Liu accessed Apple's internal systems after his departure and downloaded a substantial collection of confidential files. These allegedly included detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data — described in the complaint as dozens of Apple's confidential hardware-related files.

Apple further claims that Liu advised a former Apple colleague on methods to copy confidential company files while evading detection by Apple's security team, ahead of her own move to OpenAI. He allegedly recommended that they communicate through Line Messenger to avoid being tracked. Apple stated that Liu's actions constituted clear and deliberate violations of his post-termination contractual obligations, asserting that he accessed, copied, and directed the disclosure of Apple confidential information after his employment had ended.

Accusations Involving Tang Tan

The complaint also raises serious allegations against Tang Tan, OpenAI's chief hardware officer. Apple claims that Tan has been methodically using Apple's confidential information to benefit OpenAI. Specifically, the filing asserts that Tan emailed himself information about Apple's suppliers before leaving the company. Additionally, Apple alleges that during interviews with current Apple employees for positions at OpenAI, Tan requested confidential Apple information.

The lawsuit further states that OpenAI instructed Apple staff members to bring items such as CAD and design artifacts as well as prototypes to job interviews, suggesting what Apple views as a broader effort to obtain proprietary materials through the recruitment process.

A Broader Pattern of Talent Movement

Apple claims that more than 400 former Apple employees now work at OpenAI, highlighting the significant overlap in personnel between the two technology companies. Apple's lawsuit frames the alleged trade secret theft as part of a larger pattern rather than isolated incidents committed by a few individuals.

In a statement, Apple emphasized its commitment to protecting intellectual property, saying its teams are constantly developing breakthrough technologies and that safeguarding their work is taken very seriously. The company stated that significant evidence has emerged indicating that individuals employed by OpenAI improperly obtained confidential information about unreleased technologies, processes, and products.

Neither Apple nor OpenAI immediately responded to requests for comment from The Verge.

The legal action underscores the intensifying competition between established technology giants and emerging artificial intelligence companies as they vie for both talent and technological advantage. With hundreds of former Apple employees now at OpenAI and allegations of systematic information theft, this case could have far-reaching implications for how trade secrets are safeguarded in an era of rapid personnel movement across the tech industry. As this developing story unfolds, readers are encouraged to share this article and contribute to the discussion about the evolving dynamics between two of the most influential companies in technology today.

Source: The Verge