Apple has initiated legal action against OpenAI, citing allegations of trade secret misappropriation and breach of contract.
The tech giant claims this alleged misconduct, which it describes as a systematic pattern of theft by former Apple employees now at OpenAI, was orchestrated by OpenAI's senior leadership, including Chief Hardware Officer Tang Tan.
Filed in the U.S. District Court for the Northern District of California, the lawsuit levels several accusations against Tan. These include allegedly utilizing Apple's confidential project code names during OpenAI's recruitment, requesting job candidates to bring Apple hardware components to interviews, instructing departing Apple employees on how to circumvent company security protocols, and soliciting information about Apple's unannounced products.
Prior to his tenure at OpenAI, Tan dedicated 24 years to Apple, where his most recent role was Vice President of product design for both the iPhone and Apple Watch.
These serious allegations emerge amidst widespread speculation that OpenAI is actively developing its inaugural hardware product, which is anticipated to directly compete with the iPhone. Industry analyst Ming-Chi Kuo proposed in April that this device could be a smartphone leveraging AI agents instead of traditional applications. Should this prove accurate, it would represent one of the most significant competitive challenges to Apple's fundamental hardware business to date.
Notably, OpenAI acquired device startup io, founded by Apple's former lead designer Jony Ive, last year in a $6.5 billion deal aimed at bolstering the AI company's hardware aspirations. While io is referenced in the lawsuit, Ive himself is not named.
Tan is not the sole OpenAI employee cited in the new complaint. Apple further alleges that Chang Liu, who served as a senior systems electrical engineer at Apple for eight years, failed to return an Apple-issued laptop upon his departure for OpenAI in 2026. The lawsuit claims Liu subsequently used this computer to download confidential Apple technical documents.
According to Apple's complaint, the purportedly stolen documents contained sensitive information pertaining to unannounced technologies, features, and products, encompassing technical specifications, engineering presentations, and proprietary project data.
Additionally, Liu faces accusations within the lawsuit of sharing Apple's confidential information with other Apple employees who were applying for positions at OpenAI, even advising at least one individual on specific areas to study in preparation for their interview.
The complaint details that Apple communicated its concerns to OpenAI via a letter in February but received no reply.
Apple asserts that the actions of these former employees are indicative of a broader strategy by OpenAI to illicitly obtain Apple's confidential information. This alleged strategy included instructing Apple employees to bring designs and prototypes to their interviews and to answer detailed questions regarding processes such as component and vendor selection.
Apple's ongoing investigation has reportedly uncovered evidence that OpenAI and its partners have even utilized Apple's confidential information during the development of OpenAI's own hardware product. As an example, the filing cites a proprietary metal finishing technique allegedly employed by OpenAI after it purportedly deceived a partner into believing it had Apple's authorization for its use.
Consistent with standard practices among technology companies, Apple typically investigates potential trade secret theft or other illicit activities by scrutinizing communications on company-owned devices and reviewing server logs. By pursuing this case through the courts, Apple anticipates gaining deeper insight into the full scope of the alleged operation via the legal discovery process.
Apple is seeking several court orders, including prohibiting OpenAI from utilizing or disclosing its trade secrets, mandating the return of any confidential Apple materials, and ensuring the preservation of all evidence relevant to the case.
The filing emphatically states, "This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership." It continues, "As a natural result, OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."
In a prepared statement, Apple elaborated: "At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products. We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so."
OpenAI has been approached for comment regarding these allegations.
This remains a developing story, and further updates will be provided as they become available.
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