Apple Files Lawsuit Against OpenAI
Apple has filed a lawsuit against OpenAI, alleging that former employees stole trade secrets to benefit the AI company's nascent hardware division. The suit, filed in the U.S. District Court for the Northern District of California, targets two former Apple executives and engineers, as well as OpenAI and its hardware subsidiary io Products.
Apple claims that the defendants—Chang Liu, a senior system electrical engineer who left for OpenAI in January 2026, and Tang Tan, a former vice president of product design who left in 2024 to join Jony Ive—engaged in a pattern of misconduct. According to the complaint, Tan used his knowledge of Apple's confidential projects to grill job candidates for OpenAI, soliciting detailed information about unreleased products. Liu allegedly exploited a security bug to download over a thousand pages of confidential engineering files after his departure.
Allegations of Systematic Theft
The lawsuit paints a picture of coordinated information theft. Apple says Tan directed job candidates still employed at Apple to bring actual hardware components and prototypes to interviews for "show and tell" sessions. One candidate reportedly expressed surprise at being asked to remove parts from Apple offices. OpenAI interviewers also instructed candidates to bring CAD files, design artifacts, and detailed information about subsystem selection, vendor communications, and simulation tools.
Apple claims that Tan used a confidential Apple project codename to probe candidates about their plans for a specific unannounced product. Furthermore, he allegedly possessed and distributed an internal Apple document titled "Need to Know" to new OpenAI hires before they submitted their resignations—a document that detailed Apple's departure security protocols. Apple found that employees leaving for OpenAI often took steps to evade those security measures.
Liu's Alleged Data Breach
Chang Liu is accused of downloading a massive compilation of technical files after leaving Apple, including detailed manufacturing documents for complex circuit boards used in Apple hardware. Instead of reporting a security bug that allowed him to access these files, Liu allegedly joked about it in messages ("LOL," "so funny"). He also failed to return an Apple-issued laptop after his departure. Additionally, Liu coached another Apple employee he was recruiting to OpenAI on which confidential materials to study before her interview.
OpenAI's Hardware Ambitions and Jony Ive
The legal action comes as OpenAI intensifies its hardware development under the guidance of Jony Ive, Apple's former chief design officer. OpenAI acquired Ive's startup io in a $6.5 billion deal, bringing over 50 engineers, including Evans Hankey (former Apple design head) and Scott Cannon (another Apple veteran). While Ive, Hankey, and Cannon are not named in the suit, Apple alleges that OpenAI's hardware business is now largely built on stolen trade secrets.
Apple claims that OpenAI directed a trusted Apple partner to use Apple's proprietary metal-finishing technique, misleading the partner into believing Apple had granted permission. OpenAI also approached a second longtime Apple supplier focused on power and battery manufacturing, using insider terminology to ask targeted questions about specific Apple components.
Failed Negotiations and Broader Context
Apple says it first raised concerns with OpenAI in February, requesting an investigation and action to stop the theft. OpenAI never responded. The complaint states that the alleged conduct is "the tip of the iceberg," and Apple lacks full visibility into OpenAI's operations. The lawsuit seeks injunctive relief and damages.
The legal battle adds to ongoing tensions between the two tech giants. Earlier this year, Bloomberg reported that OpenAI was preparing legal action against Apple over how their partnership to integrate ChatGPT into Siri was handled. However, Apple explicitly states that today's lawsuit is unrelated to that agreement. The filing also reveals that over 400 former Apple employees now work at OpenAI, signaling a significant talent drain.
Apple's lawsuit highlights the high stakes in the AI hardware race. Rumors suggest OpenAI is developing a smartphone, potentially launching in 2028, as well as a HomePod-style smart speaker. If these products rely on information improperly obtained from Apple, the court may grant Apple significant remedies, including blocking the products or awarding substantial damages.
Trade secret law protects confidential business information that derives independent economic value from not being generally known. Companies like Apple invest billions in R&D and rely on strict internal security measures. Allegations of systematic theft by a competitor, especially one founded by individuals with deep Apple ties, strike at the heart of intellectual property protection. As the case unfolds, it could set precedents for how courts handle cross-company talent recruitment and information sharing in the AI era.
Source:9to5Mac News