Apple accuses OpenAI of orchestrated trade secret theft by former executives

Apple has taken legal action against OpenAI, claiming the AI company orchestrated a scheme to steal trade secrets and breach contracts through former Apple employees now in leadership positions. The complaint, filed in federal court in California on Friday, names Chief Hardware Officer Tang Tan as a key figure in the alleged misconduct and outlines a pattern of intellectual property theft.

The Allegations#

According to the lawsuit, Tan—who spent nearly a quarter-century at Apple as VP of product design for the iPhone and Apple Watch—allegedly leveraged his prior access to sensitive information to facilitate OpenAI's intelligence-gathering operation. The filing alleges he invoked Apple's confidential project code names during recruiting conversations, pressured job candidates to physically bring Apple hardware components to interviews, and coached departing employees on evading Apple's security measures.

Another named defendant, Chang Liu, previously worked as a senior systems electrical engineer at Apple for eight years before joining OpenAI in 2026. The complaint asserts that Liu retained an Apple-issued laptop after his departure and used it to download confidential technical materials, later sharing them with other Apple staff considering moves to OpenAI.

The disputed materials purportedly include technical specifications, engineering presentations, and proprietary data on unannounced products and components.

Strategic Context#

The timing of the suit is significant. OpenAI is widely expected to launch its first hardware device, with some observers suggesting it could be a smartphone powered by AI agents rather than traditional apps—a potential direct competitor to the iPhone. Earlier this year, analyst Ming-Chi Kuo reported that such a device could reshape the smartphone market.

The lawsuit also references OpenAI's 2025 acquisition of designer Jony Ive's startup io for $6.5 billion, though Ive himself was not named in the complaint.

Apple's Legal Complaint#

Apple states it sent a written notice to OpenAI in February expressing concerns; the company says it received no response. The filing alleges that OpenAI leveraged misappropriated Apple information to advance its own hardware development—including use of a proprietary metal finishing technique that OpenAI allegedly obtained by misleading a business partner about possessing Apple's authorization.

Apple is seeking a court order to prevent OpenAI from using or releasing its trade secrets, the return of all confidential materials, and preservation of evidence. A statement attributed to Apple emphasized the company's commitment to defending employee innovation and intellectual property.