Apple has filed a sweeping lawsuit against OpenAI, accusing the artificial intelligence company of orchestrating a large-scale theft of hardware trade secrets through a network of former Apple employees now working at OpenAI. The complaint, filed in federal court, alleges that OpenAI systematically acquired confidential information about unreleased Apple products, manufacturing processes, and supply chain strategies to accelerate the development of its own hardware, which is expected to debut next year.
The lawsuit names OpenAI, its hardware subsidiary IO Products (acquired in 2025 and led by former Apple design chief Jony Ive), and two former Apple engineers: Tang Tan, who now serves as OpenAI’s chief hardware officer, and Chang Liu, who joined OpenAI in January. Apple alleges that both individuals violated their contractual obligations by accessing, copying, and sharing proprietary Apple information after leaving the company.
A Pattern of Theft, Apple Says
According to the lawsuit, Apple uncovered evidence that Liu accessed Apple’s internal systems after his departure and downloaded “dozens of Apple’s confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data.” The complaint further alleges that Liu instructed a former Apple colleague on how to copy confidential files and “avoid trouble” with Apple’s security team ahead of her own move to OpenAI. Liu reportedly advised her to use Line Messenger for communications to evade detection.
Tan is accused of emailing himself information about Apple suppliers before leaving the company and requesting confidential details during interviews with Apple employees for OpenAI positions. Apple asserts that Tan has been “methodically using Apple’s confidential information to benefit OpenAI,” including directing staff to bring “CAD/design artifacts” and “prototypes” to interviews.
More Than 400 Former Apple Employees at OpenAI
The lawsuit claims that more than 400 former Apple staffers now work at OpenAI, suggesting a systematic poaching strategy. Apple alleges that OpenAI has advised departing employees to inform the company if Apple personnel “ask you to sign anything.” The complaint states: “This is a systematic effort to acquire, retain, and use Apple’s trade secrets to help OpenAI try to replicate the secret technologies, business processes, and supply chain innovations that took Apple decades to build in its consumer hardware business.”
Apple says it reached out to OpenAI in February to raise concerns and requested information about the company’s internal investigation. “OpenAI never responded,” the lawsuit notes.
OpenAI Denies Allegations
OpenAI spokesperson Drew Pusateri denied the claims in a statement to The Verge: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.” The company has not yet filed a formal response in court.
Background: The Rise of OpenAI’s Hardware Ambitions
OpenAI has long been known as a software company, primarily developing large language models like GPT-4o and ChatGPT. However, the company has steadily expanded into hardware. The acquisition of IO Products in 2025 — a startup founded by former Apple design chief Jony Ive — signaled a major push into consumer devices. Ive, who led the design of the iPhone, iPad, and Apple Watch, brought decades of expertise in industrial design and manufacturing. His firm had been working on a range of AR/VR hardware and smart home assistants.
With Ive on board, OpenAI began hiring aggressively from Apple, tapping engineers with deep knowledge of supply chain logistics, component sourcing, and assembly techniques. The lawsuit details how OpenAI allegedly used these hires to obtain confidential information about Apple’s proprietary metal-finishing processes, supplier relationships, and prototype development protocols.
Legal Implications and Trade Secret Law
Trade secret theft is a serious charge under the Defend Trade Secrets Act of 2016, which allows companies to sue for misappropriation and seek damages, injunctions, and even criminal penalties. Apple has a long history of aggressively protecting its intellectual property, having sued Samsung, Qualcomm, and many smaller companies for patent and trade secret violations.
Legal experts note that the case hinges on whether Apple can prove that OpenAI knowingly received and used stolen information. The alleged communications over Line Messenger and the specific instructions to bring prototypes to interviews could strengthen Apple’s case. However, OpenAI may argue that the information was either publicly available or that the employees’ actions were outside the scope of company policy.
In a parallel development, the U.S. Department of Justice has opened a preliminary inquiry into the matter, sources told Reuters. No official announcement has been made, but the involvement of federal authorities underscores the gravity of the accusations.
Impact on the Tech Industry
The lawsuit is the latest flashpoint in a bitter rivalry between Apple and OpenAI. Both companies are investing heavily in AI-powered hardware: Apple with its Vision Pro headset and rumored AI glasses, and OpenAI with a forthcoming device that could integrate ChatGPT into a standalone form factor. If the allegations are proven, it could delay OpenAI’s product launch and damage its reputation, while reinforcing Apple’s position as a defender of innovation.
For developers and consumers, the case raises questions about the ethics of talent acquisition in the tech industry. While poaching is common, the line between using general knowledge and stealing trade secrets is often blurred. The outcome could set a precedent for how courts handle disputes over knowledge transfer when key employees move between competitors.
As the legal battle unfolds, both companies are bracing for a long and costly fight. Apple seeks an injunction to prevent OpenAI from using the alleged secrets, along with unspecified damages. OpenAI, which has already faced scrutiny over data scraping and copyright issues, now confronts a challenge to its hardware ambitions from its most formidable rival.
Source:The Verge News