Apple Sues OpenAI Over Alleged Theft of Confidential Tech

Apple filed a lawsuit Friday against OpenAI in the U.S. District Court for the Northern District of California, alleging trade secret theft and breach of contract stemming from the conduct of former Apple employees who later joined the AI company.

The lawsuit arrives despite the two companies having a publicly established partnership. Apple announced a collaboration with OpenAI at its Worldwide Developer Conference in June 2024, integrating ChatGPT into iOS, iPadOS, and macOS. The integration allowed Siri to tap into ChatGPT when handling complex queries, with users asked for permission before any information was sent to OpenAI. For OpenAI, the partnership provided immediate access to more than one billion iPhone users at a critical time as the company faced pressure to generate revenue while managing significant computing costs.

Central to the complaint is Tang Tan, OpenAI’s Chief Hardware Officer, who spent 24 years at Apple before departing, most recently serving as VP of product design for the iPhone and Apple Watch. Apple alleges Tan used confidential Apple project code names during OpenAI’s recruiting process, asked job candidates to bring Apple hardware components to interviews, and coached departing Apple employees on how to avoid the company’s internal security procedures.

A second employee named in the filing, Chang Liu, who worked at Apple for eight years as a senior systems electrical engineer, is accused of failing to return an Apple-issued laptop after joining OpenAI in 2026 and using it to download confidential Apple technical documents. Liu is also alleged to have shared that information with other Apple employees who were interviewing at OpenAI.

Apple states it sent a letter to OpenAI in February raising these concerns and received no response.

The lawsuit comes as OpenAI is reported to be developing its first consumer hardware product, widely speculated to be a smartphone powered by AI agents. OpenAI acquired designer Jony Ive’s startup io last year in a reported $6.5 billion deal to support those hardware ambitions. While the io company is referenced in the filing, Ive himself is not named.
Apple is seeking a court order barring OpenAI from using or disclosing its trade secrets, requiring the return of any confidential materials, and the preservation of related evidence.

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Apple v. OpenAI
Category	Details
The Lawsuit	Apple filed a federal lawsuit in the Northern District of California accusing OpenAI of systematically stealing its trade secrets and confidential information.
The Defendants	The suit explicitly names OpenAI, io Products (a startup acquired by OpenAI), OpenAI Chief Hardware Officer Tang Tan, and former Apple electrical engineer Chang Liu.
Tang Tan Allegations	Tan, a former Apple VP, allegedly asked job candidates to bring actual Apple parts for "show and tell" sessions. He is also accused of using Apple's confidential information to gain insider knowledge and sharing information about Apple's suppliers.
Chang Liu Allegations	Liu allegedly failed to return a work laptop and exploited an authentication bug to access Apple's network storage after his departure. He is accused of surreptitiously downloading dozens of confidential hardware-related files while working at OpenAI.
The Hardware Business	Apple claims OpenAI's nascent hardware business relies on these misappropriated trade secrets, asserting the business model is "rotten to its core". OpenAI allegedly even tricked a supplier into using Apple's proprietary multi-step metal-finishing process.
The Fallout	The lawsuit signals a major rupture in the companies' relationship following their 2024 partnership. Apple is seeking an injunction to stop OpenAI from using its technologies, as well as damages for the alleged theft and breach of contract.