Apple filed a lawsuit against OpenAI today, accusing the AI company of orchestrating a systematic theft of trade secrets to build its own hardware device. The complaint, filed in the U.S. District Court for the Northern District of California, names OpenAI’s Chief Hardware Officer Tang Tan and former Apple engineer Chang Liu as defendants, alongside OpenAI and its subsidiary io Products.
Apple claims the misconduct reaches “at every level” of OpenAI, from technical staff to leadership, as Kif Leswing and MacKenzie Sigalos report for CNBC. Tan, who spent 24 years at Apple before leaving in 2024, is accused of using insider knowledge of confidential project codenames during job interviews and asking candidates to bring actual Apple hardware components, such as batteries and logic boards, for “show and tell” sessions.
Laptop bug and leaked security document
The lawsuit also details how Tan allegedly distributed an internal Apple document called “Need to Know” to new OpenAI hires, coaching them on how to evade the company’s exit security checks before handing in their notice.
Chang Liu, a former senior systems electrical engineer with eight years at Apple, faces separate allegations. According to Megan Morrone’s reporting for Axios, Liu kept his Apple-issued laptop after leaving for OpenAI and discovered a bug that let him access Apple’s cloud storage. He allegedly texted a former colleague still at Apple: “LOL, I found out I can access the network storage, so funny.” Apple says Liu went on to download dozens of confidential files, including detailed manufacturing documents for circuit boards.
Apple also alleges that OpenAI approached its manufacturing partners directly. In one case, the company reportedly convinced a supplier to use a proprietary Apple metal-finishing technique by falsely claiming it had Apple’s permission, as Mark Gurman writes for Bloomberg.
A partnership turned rivalry
The lawsuit marks a striking reversal for two companies that once presented themselves as close partners. OpenAI’s ChatGPT was integrated into Siri in 2024, with CEO Sam Altman attending the announcement at Apple’s headquarters. Tensions grew after OpenAI acquired Jony Ive’s hardware startup io for $6.5 billion last year, positioning the AI company as a potential competitor in devices. Ive himself is not named as a defendant.
Apple says it first raised concerns with OpenAI in February but never received a response. The company states in its filing that this is “the tip of the iceberg,” adding that OpenAI’s hardware business is “rotten to its core” due to alleged reliance on stolen information.
Apple is asking the court to block OpenAI from using its trade secrets, order the return of confidential materials, and award damages. Notably, Apple’s Siri partnership with OpenAI is not part of the dispute. The lawsuit comes as OpenAI prepares for a potential initial public offering and continues developing a rumored consumer hardware device.
Sources
- Apple sues OpenAI over alleged trade secret theft – TechCrunch
- Apple sues OpenAI for trade secret theft – Axios
- Apple Sues OpenAI for Trade Secret Theft in Blockbuster Case – Bloomberg
- Apple sues OpenAI alleging trade secret theft, says scheme was ‘at every level’ – CNBC
- Apple sues OpenAI, accuses ex-employees of stealing trade secrets – 9to5Mac
- Apple sues OpenAI, alleging trade secret theft – Six Colors
- Apple Sues OpenAI for Stealing Trade Secrets to Build AI Hardware – MacRumors
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