Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence startup of orchestrating a systematic campaign to steal trade secrets related to its hardware development. The lawsuit, filed in federal court, alleges that former Apple employees now working at OpenAI have improperly taken confidential information, including detailed technical specifications, engineering presentations, and proprietary project data, to accelerate OpenAI's hardware ambitions.

The complaint specifically names OpenAI, along with IO Products—the hardware startup founded by former Apple design chief Jony Ive, which OpenAI acquired in 2025—and two former Apple employees: Tang Tan, who now serves as OpenAI's chief hardware officer, and Chang Liu, who joined OpenAI in January 2026. Apple alleges that these individuals engaged in a 'pattern of theft' that threatens years of internal research and development.

The Allegations in Detail

According to the lawsuit, Chang Liu accessed Apple's internal systems after his departure and downloaded dozens of confidential hardware-related files. These files included unreleased product specifications, engineering presentations, and proprietary project data. Apple claims Liu also instructed a former Apple colleague on how to copy confidential files and avoid detection, specifically advising her to use the Line Messenger app to evade Apple's security protocols before she joined OpenAI.

Tang Tan, meanwhile, is accused of methodically using Apple's confidential information to benefit his new employer. The lawsuit alleges that before leaving Apple, Tan emailed himself information about Apple's suppliers and asked for confidential Apple information during interviews with current Apple employees whom he was recruiting for OpenAI. Apple states that OpenAI actively encouraged applicants to bring 'CAD/design artifacts' and 'prototypes' to job interviews, further indicating a deliberate effort to acquire trade secrets.

Systematic Effort to Replicate Apple's Hardware

Apple's complaint describes a coordinated strategy by OpenAI to replicate the sophisticated hardware ecosystem that took Apple decades to build. 'This is a systematic effort to acquire, retain, and use Apple's trade secrets to help OpenAI try to replicate the secret technologies, business processes, and supply chain innovations that took Apple decades to build in its consumer hardware business,' the lawsuit states.

Specifically, Apple alleges that OpenAI has directly targeted Apple's prized partner network and supply chain. An Apple partner that works on industrial design and metal-finishing techniques allegedly performed Apple's proprietary trade secret processes for OpenAI's benefit. The lawsuit claims that more than 400 former Apple employees now work at OpenAI, raising concerns about the flow of sensitive information.

Background and Context

Apple has a long history of aggressively protecting its intellectual property. The company has previously sued former employees for trade secret theft, including cases involving self-driving car technology and chip designs. This lawsuit, however, is notable because of the high profile of the defendant—OpenAI, one of the most prominent AI companies in the world—and the strategic importance of hardware to both companies.

OpenAI has been expanding beyond software into hardware, with plans to launch its first consumer hardware product next year. The company acquired IO Products in 2025, bringing on board Jony Ive, the legendary designer behind the iPhone, iPad, and Apple Watch. The acquisition signaled OpenAI's serious intent to create physical devices that could integrate with its AI models. Apple's lawsuit casts doubt on OpenAI's ability to achieve this goal without relying on stolen trade secrets, describing the company's hardware business as resting on 'shakiest of foundations' and 'rotten to its core by its illegal reliance on misappropriated trade secrets.'

OpenAI's Response and Apple's Previous Attempts

OpenAI has denied the allegations. Drew Pusateri, a spokesperson for OpenAI, told reporters that the company has 'no interest in other companies' trade secrets' and remains 'focused on building innovative technology that empowers people everywhere.' Apple, however, claims that it reached out to OpenAI in February 2026 to raise its concerns and request information about internal investigations. According to the lawsuit, 'OpenAI never responded.'

The lack of response led Apple to take legal action. The company is seeking an injunction to prevent further use of its trade secrets, as well as unspecified damages. Legal experts note that trade secret cases often hinge on the plaintiff's ability to prove that the information in question was truly secret and that reasonable measures were taken to protect it. Apple's strict security protocols and non-disclosure agreements are likely to be central to its case.

Implications for the Tech Industry

The lawsuit highlights the intense competition in the technology sector, particularly between established hardware giants and emerging AI companies. As AI becomes increasingly integrated into physical products, the line between software and hardware innovation is blurring. Companies like Apple, with decades of hardware expertise, are protective of their design and manufacturing secrets, while AI companies like OpenAI seek to enter new markets quickly.

If Apple's claims are proven, the case could set a precedent for how courts treat the movement of talent and information between tech companies. It also raises questions about corporate espionage and the ethical obligations of employees who move from one company to a competitor. Apple's complaint alleges that OpenAI advised departing Apple staff to let them know if Apple personnel 'ask you to sign anything,' suggesting a coordinated effort to undermine Apple's contractual protections.

The lawsuit names two specific individuals and details their alleged actions. Chang Liu's case is particularly stark: Apple claims that after his departure, he remotely accessed Apple's systems and downloaded sensitive files. He is also accused of telling a former colleague to communicate via encrypted messaging to avoid detection. Such behavior, if proven, would constitute a clear violation of standard post-employment restrictions.

Tang Tan's alleged actions involve a more subtle form of information transfer. As a high-level executive, he had access to Apple's strategic supply chain relationships. Emailing himself supplier information before leaving and then using that knowledge to benefit OpenAI could be a textbook case of trade secret misappropriation. Apple's supply chain is one of its most valuable assets, built over years of painstaking negotiation and investment.

The involvement of Jony Ive's company, IO Products, adds a layer of irony. Ive was instrumental in creating Apple's iconic designs, and his departure from Apple in 2019 was seen as a major loss. His startup eventually merged with OpenAI, bringing hardware expertise to the AI company. Apple now alleges that this combination has led to the theft of its trade secrets.

OpenAI's hardware aspirations are well known. The company has been hiring engineers from various hardware companies and has filed patents for devices ranging from smart speakers to augmented reality glasses. The acquisition of IO Products was a clear signal of intent. Apple's lawsuit could delay OpenAI's product launch or force it to redesign elements that might rely on Apple's proprietary technology.

The case is likely to be closely watched by other tech companies. If Apple wins, it could embolden companies to file similar suits against AI startups that poach talent. Conversely, a victory for OpenAI could make it harder for established companies to protect their secrets when employees move to competitors. The outcome may shape talent mobility and intellectual property protection in the AI era.

Apple's statement from a spokesperson emphasized the company's commitment to protecting its innovations: '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.' The statement noted that 'significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information.'

The tech community is abuzz with reactions. Some see the lawsuit as a typical defensive move by Apple, while others believe the allegations, if true, represent a significant breach of trust. The fact that over 400 former Apple employees now work at OpenAI suggests a talent drain that Apple may have been monitoring for some time. The lawsuit may be aimed not just at recovering damages but at discouraging further departures and sending a message to other companies.

As the legal process unfolds, both companies will likely engage in extensive discovery. Apple will need to prove that the information taken was truly secret and that OpenAI used it. OpenAI will likely argue that any information brought by employees was either publicly available or independently developed. The case could take years to resolve, but its impact on the tech industry will be felt immediately.

For now, Apple has made its position clear: it will not tolerate what it sees as a coordinated theft of its intellectual property. OpenAI has denied the allegations and continues to work on its hardware products. The next legal hearing is expected within weeks, where Apple will seek a preliminary injunction to prevent further use of its trade secrets.

Source: The Verge News