Apple Sues OpenAI Over Alleged Trade Secret Theft, Citing Senior Leadership Involvement

Apple has filed a comprehensive lawsuit against OpenAI, alleging widespread trade secret theft and breach of contract. The iPhone maker claims that this misconduct, which it describes as a pattern of theft by former Apple employees now at OpenAI, was orchestrated by senior leadership within OpenAI, specifically naming Chief Hardware Officer Tang Tan. The lawsuit, lodged in the U.S. District Court for the Northern District of California, details several serious accusations against Tan. These include using Apple's confidential project code names during OpenAI's recruitment process, requesting job candidates to bring Apple hardware components to interviews, advising departing Apple employees on how to circumvent the company's security protocols, and seeking sensitive details about Apple's unannounced products. Tan, who spent 24 years at Apple, most recently as VP of product design for the iPhone and Apple Watch, is now at the forefront of OpenAI's rumored hardware ambitions, which could see the company launch a smartphone-like device powered by AI agents, posing a significant threat to Apple's core business. Beyond Tan, the complaint also highlights the alleged actions of Chang Liu, a former senior systems electrical engineer at Apple. Liu is accused of failing to return an Apple-issued laptop upon his departure for OpenAI in 2026 and subsequently using it to download confidential Apple technical documents. These documents reportedly contained information about unannounced technologies, features, and products, including technical specifications and proprietary project data. Furthermore, Liu allegedly shared Apple's confidential information with other Apple employees applying for positions at OpenAI, even coaching them on interview preparation. Apple asserts that these individual acts are part of a broader, deliberate strategy by OpenAI to illicitly acquire its confidential information. The company claims that OpenAI and its partners have leveraged Apple's proprietary data while developing its own hardware products. An example cited is the alleged use of a proprietary metal finishing technique by OpenAI, after misleading a partner into believing it had Apple's authorization. Apple had previously raised these concerns in a letter to OpenAI in February but received no response, intensifying its resolve to pursue legal action. Through this lawsuit, Apple aims to gain greater insight into the full extent of the alleged operation via the legal discovery process, which is typically limited in internal investigations. The company is seeking court orders to prohibit OpenAI from using or disclosing its trade secrets, compel the return of all confidential Apple materials, and ensure the preservation of evidence pertinent to the case. Apple emphasized its commitment to protecting its intellectual property, stating that the alleged misconduct is "the tip of the iceberg" and that OpenAI's nascent hardware business rests on a "shaky foundation, rotten to its core by its illegal reliance on misappropriated trade secrets." OpenAI, in a public statement, responded by asserting it has "no interest in other companies' trade secrets" and remains focused on building innovative technology.