Apple sues OpenAI over alleged trade secret theft
What's the story
Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of stealing trade secrets and breaching contracts. The case was lodged in the US District Court for Northern California and alleges that the misconduct was part of a pattern involving OpenAI employees who previously worked at Apple. The tech giant claims this behavior was encouraged by senior leadership at OpenAI, including its Chief Hardware Officer Tang Tan.
Accusations
Accusations against Tan include misuse of confidential information
The lawsuit accuses Tan of misusing Apple's confidential project code names during the recruitment process at OpenAI. It also alleges he asked job candidates to bring Apple hardware components to interviews, coached departing employees on how to bypass security procedures, and sought information about unannounced products. Before joining OpenAI, Tan had a long tenure at Apple as VP of product design for iPhone and Apple Watch.
Competition
OpenAI rumored to be developing an AI agent-powered smartphone
The lawsuit comes as OpenAI is rumored to be working on its first hardware product, possibly a smartphone that would compete with Apple's iPhone. The device, if true, could pose a major threat to Apple's core hardware business. In April, industry analyst Ming-Chi Kuo had suggested this AI agent-powered smartphone could be the company's next big project.
Acquisition details
OpenAI's acquisition of Jony Ive's start-up adds complexity to case
Adding to the complexity of the situation, OpenAI acquired former Apple lead designer Jony Ive's device start-up io last year for $6.5 billion. The move was intended to help the AI company with its hardware ambitions. While io is mentioned in Apple's lawsuit against OpenAI, Ive himself isn't named as a defendant in this case.
Misconduct
Apple also claims a former employee didn't return company laptop
The lawsuit also implicates Chang Liu, a former senior systems electrical engineer at Apple who now works at OpenAI. Apple claims Liu didn't return an Apple-issued laptop after leaving for OpenAI in 2026 and used it to download confidential technical documents. The stolen documents reportedly included information about unannounced technologies, features, and products, as well as technical specifications, engineering presentations, and proprietary project data.
Strategy
Apple alleges systematic effort by OpenAI to extract confidential information
Apple alleges that the actions of these former employees are part of a larger strategy by OpenAI to extract confidential information. This included asking Apple employees to bring designs and prototypes to interviews, and answer questions about things like component and vendor selection processes. The tech giant claims its investigation revealed that OpenAI has even used Apple's confidential information while developing its own hardware product.
Legal action
Apple seeks court intervention in the case
Apple is seeking the court's intervention to stop OpenAI from using or disclosing its trade secrets. The tech giant also wants the company to return any confidential materials belonging to Apple and preserve evidence related to the case. "This is the tip of the iceberg," Apple's filing states, adding that OpenAI's hardware business now rests on a shaky foundation due to its illegal reliance on misappropriated trade secrets.