Apple has initiated a lawsuit against OpenAI, claiming the AI company engaged in trade secret theft and breach of contract, allegedly orchestrated by OpenAI's senior leadership, including Chief Hardware Officer Tang Tan.
Allegations Against OpenAI
Filed in the U.S. District Court for the Northern District of California, the lawsuit accuses Tan, who spent 24 years at Apple, of misusing Apple's confidential project code names during recruitment processes at OpenAI. The complaint further alleges Tan encouraged job candidates to bring Apple hardware components to interviews and coached former Apple employees on bypassing the company's security protocols.
Apple's allegations surface amidst rumors that OpenAI is developing its first hardware product, potentially a smartphone utilizing AI agents instead of apps, posing a significant challenge to Apple's core hardware business.
Former Employees Implicated
Chang Liu, another former Apple employee, is also named in the lawsuit. Apple claims Liu, who worked as a senior systems electrical engineer for eight years, failed to return a company-issued laptop and used it to download confidential technical documents. Liu is further accused of sharing proprietary Apple information with other employees applying to OpenAI.
These actions are part of what Apple describes as OpenAI’s strategy to extract confidential information, including asking candidates to bring designs and prototypes to interviews and answer questions about component and vendor selection processes.
Apple's Response and Investigation
In February, Apple sent a letter to OpenAI to address these concerns but received no response. The tech giant's ongoing investigation revealed further alleged misuse of confidential information, such as a proprietary metal finishing technique used by OpenAI, purportedly under false pretenses of having Apple’s permission.
Apple is seeking a court injunction to prevent OpenAI from using or disclosing its trade secrets, demanding the return of all confidential materials, and requesting the preservation of evidence related to the case.
“This is the tip of the iceberg,” Apple states in the filing, asserting that OpenAI’s hardware ambitions are tainted by reliance on misappropriated trade secrets.
Apple's Stance
In a prepared statement, Apple emphasized its commitment to protecting its intellectual property: “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.”
OpenAI has been contacted for a comment on the lawsuit.
Source: https://techcrunch.com/2026/07/10/apple-sues-openai-over-alleged-trade-secret-theft/
