Apple sues OpenAI over alleged trade secret theft

Apple filed a lawsuit Friday against OpenAI over allegations of trade secret theft and breach of contract. The complaint, filed in the U.S. District Court for the Northern District of California, alleges that OpenAI’s senior leadership, including Chief Hardware Officer Tang Tan, directed this misconduct. Tan spent 24 years at Apple before joining OpenAI, most recently as VP of product design for iPhone and Apple Watch.

The lawsuit accuses Tan of using Apple’s confidential project code names during recruiting, asking candidates to bring Apple hardware components to interviews, coaching departing employees on evading Apple’s security procedures, and seeking details about unannounced products.

Apple also named Chang Liu, who spent eight years at Apple as a senior systems electrical engineer, in the complaint. Liu allegedly failed to return an Apple-issued laptop after leaving for OpenAI in 2026, using it to download confidential technical documents, including information on unannounced technologies and products. He is also accused of sharing Apple’s confidential information with other Apple employees applying for jobs at OpenAI.

Apple says it sent a letter to OpenAI in February raising concerns but received no response. The investigation revealed that OpenAI and its partners used Apple’s confidential information while developing their own hardware product. For example, the filing references a proprietary metal finishing technique used by OpenAI after allegedly misleading a partner about having Apple’s permission.

Apple is asking the court to bar OpenAI from using or disclosing its trade secrets, require the return of confidential materials, and preserve evidence. “This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership,” the filing states.

OpenAI is rumored to be developing its first hardware product, which industry analyst Ming-Chi Kuo suggested could be a smartphone relying on AI agents instead of apps. This would pose a major threat to Apple’s core business. OpenAI previously acquired Jony Ive's device startup io for $6.5 billion to aid its hardware ambitions.