Apple Sues OpenAI for Alleged Trade Secret Theft

On Friday, Apple filed a lawsuit against OpenAI, claiming the company has unlawfully taken trade secrets and breached contractual agreements.

The iPhone maker alleges that this conduct is part of a broader pattern of theft involving former Apple employees now at OpenAI, purportedly orchestrated by senior executives, including Chief Hardware Officer Tang Tan.

Filed in the U.S. District Court for the Northern District of California, the lawsuit charges that Tan misused Apple’s confidential project codenames during the hiring process at OpenAI, instructed job applicants to bring Apple hardware for interviews, coached former Apple employees on evading the company’s security measures, and sought information on undisclosed products.

Prior to his role at OpenAI, Tan spent 24 years at Apple, most recently as the VP of product design for iPhone and Apple Watch.

These allegations surface as speculation grows that OpenAI is working on its first hardware product, which is expected to rival the iPhone. In April, analyst Ming-Chi Kuo suggested that this device could be a smartphone employing AI agents instead of traditional applications. If true, this could significantly challenge Apple’s core hardware business.

Apple’s former chief designer, Jony Ive, sold his device startup, io, to OpenAI last year for $6.5 billion to enhance the AI company’s hardware objectives. Although io is mentioned in the lawsuit, Ive himself is not implicated.

Tan is not the only former Apple employee named in the lawsuit. Apple also claims that Chang Liu, who spent eight years at the company as a senior systems electrical engineer, failed to return an Apple-issued laptop when he left for OpenAI in 2026 and used the device to download confidential Apple documents.

The lawsuit alleges that these stolen documents held sensitive information about unreleased technologies, features, and products, including technical specifications, engineering presentations, and proprietary project details.

Liu is additionally accused of sharing Apple’s confidential information with other former employees applying to OpenAI, providing guidance to at least one candidate on interview preparation.

Apple expressed its concerns to OpenAI in a letter in February but reportedly received no response, as stated in the complaint.

The complaint suggests that the actions of these former employees are part of OpenAI’s plan to extract Apple’s confidential information, which included requesting Apple personnel to bring designs and prototypes to interviews and asking about component and vendor selection.

Apple contends that its investigation revealed that OpenAI and its affiliates allegedly used Apple’s confidential information while developing their own hardware product. The filing cites an exclusive metal finishing technique that OpenAI reportedly used without proper authorization from Apple.

Like many tech companies, Apple usually investigates potential trade secret theft by analyzing communications on company devices and reviewing server logs. By bringing this case to court, Apple aims to uncover the full extent of the alleged activities through the legal discovery process.

Apple seeks to prevent OpenAI from using or disclosing its trade secrets, mandate the return of any confidential Apple materials, and ensure the preservation of evidence relevant to the case.

“This is merely the beginning. Apple lacks insight into the activities occurring within OpenAI, where such misconduct seems to be commonplace and is highlighted by its leadership,” the filing states. “Consequently, OpenAI’s nascent hardware initiative is precariously positioned, fundamentally compromised by its illegal reliance on misappropriated trade secrets.”

In a statement, Apple added:

“At Apple, our teams are dedicated to creating groundbreaking technologies to deliver the best products and services worldwide, and protecting their work and intellectual property is of the highest importance to us. Recent significant evidence suggests that individuals at OpenAI improperly obtained Apple’s confidential information regarding unreleased technologies, processes, and products. We are committed to defending our teams’ hard work and innovations through all appropriate actions.”

OpenAI was contacted for a comment.

This story is ongoing and will be updated.