Apple Sues OpenAI for Allegedly Stealing Hardware Secrets


Source: Jay Peters / platform.theverge.com

Apple’s Lawsuit Against OpenAI

Apple has filed a lawsuit against OpenAI, accusing the company of stealing its hardware secrets. According to the lawsuit, OpenAI employees who were formerly at Apple allegedly stole the company’s trade secrets to advance OpenAI’s hardware plans.

In its complaint, Apple says it has uncovered a ‘pattern of theft of Apple’s trade secrets by OpenAI employees who were formerly at Apple.’ The lawsuit also names IO Products, Jony Ive’s hardware startup, which OpenAI bought in 2025, along with two specific employees: Tang Tan, OpenAI’s chief hardware officer, and Chang Liu, who joined OpenAI from Apple in January.

Apple spokesperson shared a statement with 9to5Mac: ‘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.’

OpenAI’s Drew Pusateri told The Verge that ‘We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.’

The Accusations

Liu is accused of accessing Apple’s systems after leaving the company and downloading information, including ‘dozens of Apple’s confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data.’

He is also said to have instructed a former Apple colleague on how to copy confidential Apple files and ‘avoid trouble’ with the company’s security team ahead of her joining OpenAI. Liu allegedly told her they should communicate over Line Messenger to avoid being detected.

‘Mr. Liu’s material breaches of his contract are equally clear and deliberate: he accessed, copied, and directed the disclosure of Apple Confidential Information after his employment ended, in direct violation of his post-termination obligations,’ Apple says.

Tan has been ‘methodically using Apple’s confidential information to benefit OpenAI,’ according to the lawsuit, including emailing information to himself about Apple suppliers before leaving the company and asking for confidential Apple information when interviewing Apple employees for OpenAI jobs.

OpenAI has also told Apple staffers to bring things like ‘CAD/design artifacts’ and ‘prototypes’ to interviews, according to the suit. ‘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,’ Apple says.

Apple alleges that OpenAI has also been ‘targeting Apple’s prized partner network and supply chain directly,’ including having an Apple partner, which works with Apple on industrial design and metal-finishing techniques, ‘perform Apple’s proprietary, trade secret processes for OpenAI’s benefit.’

More than 400 former Apple staffers now work at OpenAI, Apple claims. The company accuses OpenAI of advising Apple staffers that are departing to let OpenAI know if Apple personnel ‘ask you to sign anything.’

Apple says it reached out to OpenAI in February to raise its concerns and ask OpenAI to say what it was doing to look into the problem. ‘OpenAI never responded,’ according to Apple.

OpenAI’s first hardware product is expected to arrive next year. In the lawsuit, Apple casts doubt on OpenAI’s ability to ship — at least without relying on Apple’s work. ‘OpenAI’s nascent hardware business now rests on the shakiest of foundations,’ the lawsuit says, ‘rotten to its core by its illegal reliance on misappropriated trade secrets.’

Update, July 10th: Added statement from OpenAI.

Background on OpenAI’s Hardware Plans

OpenAI’s hardware plans have been a subject of interest in the tech industry for some time now. The company has been working on its first hardware product, which is expected to be released next year. Apple’s lawsuit casts doubt on OpenAI’s ability to ship this product without relying on Apple’s work.

OpenAI has been hiring former Apple employees, including those who worked on Apple’s hardware projects. The company has also been telling Apple staffers to bring confidential information to interviews, according to the lawsuit. This has raised concerns about OpenAI’s intentions and whether it is trying to replicate Apple’s secret technologies and business processes.

Apple’s lawsuit is a significant development in the tech industry, as it highlights the importance of protecting intellectual property and trade secrets. The lawsuit also raises questions about OpenAI’s ability to succeed in the hardware market without relying on Apple’s work.