[Tech Trend] Apple Sues OpenAI Over Alleged Theft of Hardware Trade Secrets

Apple Sues OpenAI Over Alleged Theft of Hardware Trade Secrets

[Daily New San Francisco]  — Tech giant Apple has initiated legal action against OpenAI, filing a suit in Northern California federal court alleging systemic trade secret misappropriation and contract violations connected to OpenAI's hardware division.

The complaint alleges that senior management at OpenAI—specifically former Apple executive Tang Tan, now OpenAI's Chief Hardware Director—orchestrated a campaign to extract sensitive intellectual property from departing Apple staff. Tan spent over two decades at Apple, serving as Vice President of Product Design for flagship devices like the iPhone and Apple Watch, before transitioning to OpenAI.

According to court filings, Apple alleges that during recruitment efforts, job candidates were prompted to share internal code names, bring physical prototypes to interviews, and disclose proprietary supplier and material selection data. Apple also claims departing personnel were instructed on methods to bypass corporate IT monitoring systems.

Hardware Ambitions and Unannounced Tech

The lawsuit lands as OpenAI works toward introducing its debut consumer hardware device, a project widely expected to challenge Apple’s hardware ecosystem. Industry speculation points to a non-traditional smartphone centered around autonomous AI agents rather than standard app storefronts. OpenAI strengthened its hardware efforts last year through the $6.5 billion acquisition of io, a hardware design firm launched by former Apple design chief Jony Ive. While the filing mentions io, Ive himself is not named as a defendant.

The filing highlights specific individual conduct, including allegations against former Apple systems engineer Chang Liu. Apple claims Liu retained a company-issued laptop after taking a role at OpenAI earlier this year, using the device to exfiltrate technical specifications, proprietary engineering decks, and feature roadmaps for unreleased products.

Apple further asserts that OpenAI utilized stolen technical data during product development, citing an instance where the AI company allegedly misused a proprietary metal-finishing process by falsely claiming it had permission to use Apple’s process.

Legal Demands and Responses

Apple states it initially raised these concerns directly with OpenAI via written correspondence in February, but received no response before seeking judicial intervention. Through this lawsuit, Apple seeks:

• Injunctions preventing OpenAI from using or sharing proprietary Apple information.

• The immediate return of all confidential assets and documents.

• Court-ordered preservation of potential evidence.

"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," an Apple representative said in an official statement, adding that recent findings compelled the company to take formal legal action.

In a statement posted to social media following the filing, OpenAI denied the allegations, stating: "We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere."