Apple Sues OpenAI Over Alleged Theft of Hardware Trade Secrets

Apple has filed a lawsuit against OpenAI in the U.S. District Court for the Northern District of California, alleging a calculated campaign of trade secret theft and breach of contract. The iPhone maker claims that OpenAI’s senior leadership, including Chief Hardware Officer Tang Tan, orchestrated a pattern of misconduct designed to extract confidential information from Apple to bolster OpenAI’s own hardware ambitions.

Allegations of Systematic Misappropriation

The lawsuit details a series of specific accusations against former Apple employees now working at OpenAI. Tang Tan, who spent 24 years at Apple before joining OpenAI, is accused of leveraging Apple’s confidential project code names during the recruitment process. According to the filing, Tan allegedly coached departing Apple employees on how to evade internal security protocols and requested that job candidates bring Apple hardware components to their interviews.
In addition to Tan, the complaint names Chang Liu, a former senior systems electrical engineer at Apple. Apple alleges that Liu failed to return a company-issued laptop upon his departure in 2026 and used the device to download sensitive technical documents, including engineering presentations and proprietary project data. Liu is further accused of sharing this confidential information with other Apple employees applying for roles at OpenAI.

Strategic Hardware Ambitions

The legal action comes as OpenAI reportedly develops its first hardware product, a device rumored to be a smartphone centered on AI agents rather than traditional apps. Apple’s filing suggests that OpenAI’s hardware efforts are built upon a foundation of misappropriated trade secrets. The company pointed to instances where OpenAI allegedly utilized a proprietary metal finishing technique belonging to Apple, misleading a partner into believing the use was authorized.
Apple claims that its internal investigation revealed a broader strategy by OpenAI to extract sensitive data, including details regarding component and vendor selection processes. The company noted that it attempted to address these concerns in a letter sent to OpenAI in February but received no response.

Legal Demands and Industry Impact

Through this litigation, Apple seeks to bar OpenAI from using or disclosing its trade secrets and is requesting the return of all confidential materials. The company also aims to preserve evidence related to the case, which it believes will reveal the full extent of the alleged operation during the legal discovery process.
In a prepared statement, Apple emphasized its commitment to defending its intellectual property and the hard work of its teams. An OpenAI spokesperson responded to the allegations by stating that the company has no interest in the trade secrets of other firms and remains focused on building innovative technology. The lawsuit remains an ongoing matter as Apple pursues its claims in court.