Apple Sues OpenAI Over Alleged Trade Secrets Theft Tied to Hardware Push

Apple filed a lawsuit against OpenAI and two of its own former employees on Friday, accusing them of stealing trade secrets to help OpenAI build consumer hardware products. The complaint claims OpenAI ran a coordinated effort to obtain Apple’s confidential information through former staff, hiring practices, and supplier relationships.

OpenAI responded in a statement saying it has no interest in other companies’ trade secrets and remains focused on building its own technology. The case was filed in the US District Court for the Northern District of California, shortly after OpenAI beat back a separate legal challenge from Elon Musk’s xAI.

Specific Allegations Against Former Engineers

The lawsuit names Chang Liu, a former senior system electrical engineer, and Tang Yew Tan, former vice president of product design for iPhone and Apple Watch. Apple claims Liu kept a company laptop and used an authentication flaw to access internal systems, downloading confidential hardware files. Apple also alleges Tan emailed himself supplier information and industry summaries before leaving, and encouraged other employees to bring Apple parts to OpenAI job interviews.

More Than 400 Former Apple Staff Now at OpenAI

Apple says it raised concerns with OpenAI in February but never got a response. The company noted that more than 400 former Apple employees currently work at OpenAI, which acquired hardware startup io Products, founded by former Apple designer Jony Ive, for $6.5 billion last year. Legal experts say the case could become significant, though hiring former employees alone isn’t illegal in California, the key question will be whether stolen documents were actually used.