Apple Sues OpenAI Over Alleged Trade Secret Theft Tied to AI Hardware Plans
Apple has filed a lawsuit against OpenAI, accusing the AI company of trade secret theft, breach of contract, and improper use of confidential information connected to Apple’s unreleased products and hardware technologies.
The case, filed in the U.S. District Court for the Northern District of California, centers on claims that former Apple employees who later joined OpenAI took or shared sensitive internal information. Apple alleges that the conduct was not isolated, but part of a broader pattern involving OpenAI’s push into consumer hardware.
According to Apple’s complaint, the alleged misconduct involved confidential project code names, unreleased product details, hardware components, technical specifications, engineering documents, vendor information, and proprietary manufacturing processes.
A major figure named in the lawsuit is Tang Tan, OpenAI’s Chief Hardware Officer. Before joining OpenAI, Tan spent 24 years at Apple, where he most recently served as vice president of product design for the iPhone and Apple Watch. Apple claims Tan played a key role in encouraging the flow of confidential Apple information into OpenAI’s hardware efforts.
The lawsuit alleges that Tan used Apple’s internal project code names during OpenAI’s recruiting process and asked candidates to bring Apple hardware components to interviews. Apple also claims he coached departing Apple employees on how to avoid the company’s security procedures and sought details about products that had not yet been announced.
The legal dispute comes as OpenAI is reportedly working on its first major hardware product. Industry speculation has suggested the device could be a new kind of AI-first smartphone or personal computing device, designed around AI agents rather than traditional mobile apps. If OpenAI enters the smartphone market, it could become a direct challenge to Apple’s most important business.
Apple’s complaint also references OpenAI’s acquisition of io, the device startup connected to former Apple design chief Jony Ive. The deal was reportedly intended to strengthen OpenAI’s hardware ambitions. While io is mentioned in the lawsuit, Ive himself is not named as a defendant.
Another former Apple employee identified in the complaint is Chang Liu, who worked at Apple for eight years as a senior systems electrical engineer. Apple alleges that Liu failed to return an Apple-issued laptop after leaving for OpenAI and used the computer to download confidential Apple technical documents.
The documents allegedly included information about unreleased technologies, future product features, technical specifications, engineering presentations, and internal project data. Apple further claims Liu shared confidential information with other Apple employees who were applying for jobs at OpenAI, including advising at least one candidate on what to study before an interview.
Apple says it contacted OpenAI in February to raise concerns about the alleged conduct but did not receive a response.
The lawsuit argues that OpenAI’s hardware recruitment efforts were designed to extract confidential Apple knowledge. Apple claims job candidates were asked about designs, prototypes, component choices, manufacturing methods, and vendor selection processes.
Apple also alleges that its investigation found evidence that OpenAI and its partners used Apple’s confidential information while developing OpenAI’s own hardware product. One example cited in the complaint involves a proprietary metal finishing technique that Apple says was used after OpenAI allegedly misled a partner into believing it had permission from Apple.
The company says it uncovered evidence through internal reviews of company-owned devices, communications, and server logs. By filing the lawsuit, Apple may gain access to additional information through the legal discovery process, potentially revealing more about how OpenAI’s hardware program was developed.
Apple is asking the court to stop OpenAI from using or disclosing any Apple trade secrets. It also wants OpenAI to return any confidential Apple materials and preserve evidence related to the case.
In the filing, Apple describes the alleged conduct as only “the tip of the iceberg,” claiming it has limited visibility into what may have happened inside OpenAI. The company argues that OpenAI’s emerging hardware business is built on improperly obtained Apple information.
Apple also issued a statement saying its teams work to develop breakthrough technologies and that protecting their intellectual property is a serious priority. The company said evidence suggests individuals employed by OpenAI wrongfully took confidential information about unreleased Apple technologies, processes, and products.
OpenAI has been asked for comment.
The lawsuit could become one of the most significant legal battles in the technology industry, especially as artificial intelligence companies move beyond software and into physical devices. For Apple, the case is about defending its hardware innovation and protecting the secrecy behind future products. For OpenAI, the lawsuit arrives at a critical moment as it attempts to expand from AI models and services into the competitive world of consumer electronics.
