Apple Sues OpenAI for Stealing Hardware Trade Secrets

Apple has filed a major lawsuit against OpenAI and its hardware chief, accusing the startup of orchestrating a coordinated campaign to steal trade secrets related to unreleased devices.



Filed in the Northern District of California, the complaint names OpenAI, its io Products hardware unit, former Apple vice president of product design Tang Yew Tan, and former senior system electrical engineer Chang Liu. Apple alleges OpenAI encouraged departing employees to take proprietary documents, CAD files, prototypes, and other materials to accelerate its consumer device ambitions.


Tan now serves as OpenAI's chief hardware officer after leaving Apple to co-found an AI device startup that OpenAI acquired last year for $6.5 billion. The lawsuit alleges Tan instructed Apple employees interviewing at OpenAI to bring components they had worked on, including batteries, main logic boards, and other parts, for "show-and-tell" sessions. It also claims OpenAI required some candidates to prepare technical presentations using Apple's CAD files, prototypes, and engineering documentation. During interviews, candidates were allegedly questioned about unreleased products, manufacturing processes, supplier relationships, and internal tools. The filing further alleges Tan retained an internal "Need to Know" document describing Apple's employee offboarding procedures and shared it with recruits before they left the company, giving them advance notice of its security protocols.

The complaint details similarly serious allegations against Liu, who joined OpenAI in January. Apple says Liu exploited a previously unknown authentication bug to access the company's internal network after his departure. While working at OpenAI, he allegedly downloaded dozens of sensitive engineering files, including one collection exceeding 1,000 pages, covering unreleased products, engineering presentations, technical specifications, and manufacturing workflows. The company also claims Liu accessed a former colleague's Apple-issued computer to obtain additional information and directed her to communicate over a private messaging app to avoid detection.

Apple claims the theft also extended into its supply chain. The suit alleges OpenAI used misappropriated information to approach Apple's trusted manufacturing partners. In one instance, Apple says OpenAI misled a supplier into performing a proprietary metal-finishing process by falsely implying Apple had authorized the work.

The lawsuit marks a dramatic escalation in tensions between the two companies, which still have a commercial agreement integrating ChatGPT with Apple Intelligence. Apple states in the complaint that the agreement is not at issue and has no connection to the alleged trade secret theft. The company says it raised its concerns privately with OpenAI in February but received no response before filing suit.


Apple is seeking a jury trial, compensatory and exemplary damages, and injunctions preventing OpenAI, io Products, Tan, and Liu from possessing, using, or disclosing its trade secrets. The complaint also asks the court to order the defendants to return Apple property, cease accessing Apple's confidential information, and preserve evidence related to the case. More than 400 former Apple employees now work at OpenAI, a migration highlighted by the recent departure of Apple's head of vision products and smart glasses efforts. OpenAI did not immediately respond to a request for comment.