Apple Lawsuit: Apple Sues OpenAI Over Alleged Theft of Hardware Trade Secrets
The tech giant accuses OpenAI, its hardware unit and two former Apple executives of using confidential information to speed up consumer device development.
Apple has filed a federal lawsuit accusing OpenAI of misusing confidential hardware trade secrets.
Apple Lawsuit has escalated tensions between two major technology partners after Apple filed a federal lawsuit accusing OpenAI, its hardware subsidiary io Products, and two former Apple employees of stealing confidential trade secrets to accelerate the development of OpenAI’s planned consumer devices.
The 41-page complaint, filed in the US District Court for the Northern District of California, names OpenAI Chief Hardware Officer Tang Yew Tan and engineer Chang Liu as defendants. Apple alleges they participated in a coordinated effort to obtain confidential product designs, manufacturing techniques and supplier information. The allegations have not yet been tested in court.
According to the lawsuit, Chang Liu worked at Apple for eight years before joining OpenAI in January 2026. Apple claims Liu failed to return a company-issued laptop after leaving the company and later discovered he could still access Apple’s internal network because of an authentication flaw.
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The complaint alleges Liu downloaded dozens of confidential files, including engineering documents, technical presentations and information related to unreleased Apple products. Apple says one collection of downloaded material exceeded 1,000 pages. The lawsuit also cites an alleged message from Liu to a former colleague stating that he had discovered continued access to Apple’s internal storage system.
Apple also accuses Tang Yew Tan, who spent 24 years at the company and most recently served as Vice President of Product Design for the iPhone and Apple Watch, of using Apple’s internal project names during recruitment interviews.
The company further alleges that job candidates were encouraged to bring prototypes, hardware components and confidential design materials to OpenAI interviews for “show and tell” sessions. According to the complaint, the requested items included batteries, main logic boards, shields and systems-in-package.
Apple filed four claims under the federal Defend Trade Secrets Act and two additional claims for breach of contract. Under US law, companies can seek court orders to stop the use of protected trade secrets, recover financial damages and, in cases involving intentional misconduct, pursue enhanced damages.
The legal dispute adds pressure to an important commercial partnership. Apple integrated ChatGPT into Siri and Apple Intelligence following its agreement with OpenAI announced in 2024. Apple said the partnership remains separate from the lawsuit and is not part of the legal challenge.
The case also follows several high-profile trade secret disputes in the technology industry. Apple previously sued chip startup Rivos in 2022 over alleged theft of semiconductor design information before both companies reached a settlement in 2024. Waymo also pursued legal action against Uber over confidential self-driving technology, with that case settling in 2018.
Apple argues that its product designs, manufacturing processes, testing methods, component technologies and supplier relationships represent valuable trade secrets built through decades of research and hundreds of billions of dollars in investment.
The company is seeking preliminary and permanent injunctions, the preservation of electronic evidence, the return of confidential information, financial damages and a jury trial. The defendants are expected to respond to the complaint, while the court will determine whether Apple’s trade secrets received legal protection and whether they were acquired or used improperly.
