Regulation

Apple sues OpenAI alleging recruitment-driven trade secret theft and misuse

Apple has sued OpenAI in the U.S.

Apple sues OpenAI alleging recruitment-driven trade secret theft and misuse

Apple filed a lawsuit on Friday in the U.S. District Court for the Northern District of California accusing OpenAI of systematically misappropriating Apple trade secrets and breaching contractual obligations. The complaint names senior OpenAI personnel and former Apple employees as central to the alleged scheme.

The filing specifically accuses Tang Tan, OpenAI’s Chief Hardware Officer, of directing efforts to obtain Apple confidential information. According to Apple, Tang — who spent 24 years at Apple and most recently served as vice president of product design for the iPhone and Apple Watch before joining OpenAI — used Apple project code names during OpenAI’s recruiting, asked candidates to bring Apple hardware components to interviews, coached departing Apple employees on evading Apple security procedures, and requested details about unannounced Apple products.

The complaint also names Chang Liu, who Apple says worked eight years at Apple as a senior systems electrical engineer. Apple alleges Liu failed to return an Apple-issued laptop after leaving to join OpenAI in 2026, and used that device to download confidential Apple technical documents. The suit states the stolen materials included information about unannounced technologies, features and products, such as technical specifications, engineering presentations and proprietary project data.

Apple further alleges Liu shared Apple confidential information with other Apple employees applying to OpenAI and advised at least one candidate on what to study for their interview. Apple says it raised these concerns with OpenAI in a letter sent in February but received no response.

Apple portrays the conduct of these former employees as part of an OpenAI strategy to extract Apple’s confidential information. The complaint alleges OpenAI recruiters asked Apple staff to bring designs and prototypes to interviews and posed questions about component and vendor selection processes.

Apple also alleges that OpenAI and some partners used Apple’s confidential material while developing OpenAI’s own hardware. The filing cites, as an example, a proprietary metal finishing technique that OpenAI allegedly used after misleading a partner into believing it had Apple’s permission to do so.

Context: OpenAI’s hardware ambitions

The lawsuit arrives amid reports that OpenAI is developing its first hardware product, which could potentially compete with the iPhone. In April, industry analyst Ming-Chi Kuo suggested the device might be a smartphone relying on AI agents rather than traditional apps. Apple’s filing argues that if OpenAI’s hardware plans proceed, they would represent a substantial threat to Apple’s core hardware business.

OpenAI acquired Jony Ive’s device startup io last year in a deal valued at about $6.5 billion to support its hardware efforts. The filing names io but does not name Jony Ive as a defendant.

Legal relief sought and importance of discovery

Apple asks the court to bar OpenAI from using or disclosing its trade secrets, to require return of confidential materials, and to preserve evidence. In the complaint Apple asserts, “This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership,” adding that OpenAI’s nascent hardware business now rests on “the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”

In a prepared statement Apple said its teams continually develop breakthrough technologies and that protecting their work is a priority. The company stated significant evidence has emerged suggesting some individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding unreleased technologies, processes and products.

OpenAI was asked for comment; the source material does not include a response.

The case is developing. Apple’s filing is publicly available, and the discovery process in the litigation may reveal further details about the scope and methods of the alleged operation. Apple filed the complaint on a Friday and the story was originally published at 1:32 p.m. PT.