Apple Sues OpenAI, Accusing Hardware Chief of Stealing Trade Secrets

Apple filed a lawsuit on Friday against OpenAI and its hardware chief, Tang Tan, accusing them of stealing the iPhone maker’s trade secrets, including unreleased parts, prototypes, and confidential project documents. The lawsuit alleges that Tang, who spent 24 years at Apple overseeing iPhone product design, and his colleagues at OpenAI encouraged departing or prospective Apple employees to bring proprietary technology with them. Tan allegedly coached recruits on how to evade Apple’s data security protocols and directed them to bring confidential Apple parts to job interviews at OpenAI.

Apple claims that OpenAI’s nascent hardware business relies on misappropriated trade secrets and that the company resorted to unlawful shortcuts amid pressure to deliver its first commercial hardware product. OpenAI and Tang did not immediately respond to requests for comment. Apple spokesperson Hannah Smith said the company will defend its teams' work and innovations.

The suit details that OpenAI has hired more than 400 former Apple employees, including several veterans leading the development of AI-powered consumer devices. Last year, OpenAI paid $6.5 billion to acquire io Products, a startup cofounded by former Apple executives including Tan, Scott Cannon, Evans Hankey, and renowned designer Jony Ive. io Products and electrical engineer Chang Liu, who left Apple in January, are also named as defendants.

Apple’s investigation into the alleged theft relied on data from employees’ devices. The company caught on early this year after Liu failed to return his company-issued laptop and wrote to a former colleague about still having access to Apple’s internal file-sharing system (a bug that has since been fixed). Liu allegedly downloaded dozens of confidential hardware-related files, including a presentation on manufacturing and testing complex circuit boards. He also coached a recruit on how to “avoid trouble with the security team” when copying confidential files.

Apple wrote to OpenAI in February raising concerns but received no response. Further investigation revealed that before leaving, Tan emailed himself information about Apple’s suppliers. He also directed job candidates still working at Apple to bring actual parts to interviews for “show and tell” sessions. In another instance, an Apple employee was identified screenshotting and downloading files about a highly confidential project in the hours before an interview with Tan.

Tan is also accused of taking an internal Apple document that explains security procedures for departing workers and using it to coach employees to avoid disclosing their new employer, prolong access to company systems, and avoid signing exit documents.

Apple is seeking an injunction to stop OpenAI from continuing the alleged theft, along with monetary damages and the return of any stolen property and data.