Apple sues OpenAI over alleged trade secret theft

Apple initiated legal action against OpenAI on Friday, accusing the AI firm of stealing trade secrets and violating contractual agreements.

The tech giant claims this misconduct reflects a coordinated effort by OpenAI’s top executives, including Chief Hardware Officer Tang Tan, to exploit former Apple employees who have since joined OpenAI.

Filed in the U.S. District Court for the Northern District of California, the lawsuit alleges that Tan exploited Apple’s confidential project codenames during recruitment, requested candidates bring Apple hardware components to interviews, coached departing staff on bypassing security protocols, and solicited details regarding unreleased products.

Tan, who recently joined OpenAI, previously spent 24 years at Apple, serving most recently as Vice President of Product Design for the iPhone and Apple Watch.

These allegations surface amid reports that OpenAI is developing its first hardware device, potentially a smartphone competing directly with the iPhone. Industry analyst Ming-Chi Kuo recently suggested this device might rely on AI agents rather than traditional apps, posing a significant threat to Apple’s core hardware revenue.

Last year, OpenAI acquired Jony Ive’s device startup, io, in a $6.5 billion deal to bolster its hardware capabilities. While io is named in the complaint, Ive himself is not implicated.

Tan is not the only former Apple employee cited in the lawsuit. Apple also accuses Chang Liu, a senior systems electrical engineer who worked at Apple for eight years, of failing to return an Apple-issued laptop after joining OpenAI in 2026 and using it to download confidential technical documents.

According to the complaint, the stolen materials included details on unannounced technologies, features, and products, encompassing technical specifications, engineering presentations, and proprietary project data.

Liu is further accused of sharing Apple’s confidential information with other former colleagues applying for roles at OpenAI, including advising at least one candidate on preparation for their interview.

Apple states it sent a letter to OpenAI in February expressing its concerns but received no response, as noted in the complaint.

The lawsuit alleges that these former employees’ actions are part of a broader OpenAI strategy to extract confidential information, including requests for candidates to bring designs and prototypes to interviews and answer questions about component and vendor selection processes.

Apple’s investigation suggests that OpenAI and its partners have utilized this confidential information while developing their own hardware. For example, the filing cites a proprietary metal finishing technique that OpenAI allegedly used after misleading a partner into believing it had Apple’s permission.

Similar to other tech firms, Apple typically investigates potential trade secret theft by analyzing communications on company-owned devices and reviewing server logs. By pursuing legal action, Apple aims to uncover the full scope of the alleged operation through the discovery process.

Apple is requesting that the court prohibit OpenAI from using or disclosing its trade secrets, order the return of all confidential Apple materials, and preserve evidence related to the case.

“This is merely the tip of the iceberg. Apple lacks visibility into the closed-door operations at OpenAI, where such misconduct appears normalized and endorsed by leadership,” the filing reads. “Consequently, OpenAI’s emerging hardware business rests on unstable foundations, corrupted at its core by its illegal reliance on misappropriated trade secrets.”

In a prepared statement, Apple also declared:

At Apple, our teams continuously develop breakthrough technologies to create the world’s best products and services, and protecting their work and intellectual property is a priority. Recent evidence suggests individuals at OpenAI wrongfully obtained Apple’s secret and confidential information regarding our unreleased technologies, processes, and products. We are committed to defending our teams’ hard work and innovations and are taking all necessary steps to do so.

OpenAI has been requested for comment on these allegations.

The full filing is available here, or you can view it below.

This story is developing and will be updated. It was originally published at 1:32 p.m. PT.