Apple has filed a significant lawsuit against OpenAI, alleging systematic theft of trade secrets. The lawsuit not only targets the AI company but also focuses on two former Apple employees. The accusations range from unauthorized data access to the deliberate use of confidential information in OpenAI’s hardware plans.
Apple Accuses OpenAI of Trade Secret Theft
In a 41-page complaint (PDF), Apple makes serious allegations against OpenAI, its hardware subsidiary io Products, and former Apple employees Chang Liu and Tang Yew Tan. Apple claims that these actions are not just isolated incidents involving individual employees but a systematic approach by OpenAI to exploit Apple’s decades of hardware expertise for its own hardware business.
The lawsuit emphasizes allegations of wrongful appropriation of trade secrets and breach of contract. Filed in the U.S. District Court for the Northern District of California, the case relies on numerous internal communication protocols, access data, and documents that Apple claims to have reviewed in its own investigation.
Core Accusations: Access to Confidential Apple Systems
The allegations against former Senior System Electrical Engineer Chang Liu are particularly detailed. Liu worked for Apple for about eight years before moving to OpenAI in early 2026. According to Apple, Liu did not return at least one company computer after leaving and largely evaded official offboarding processes.
Additionally, Apple accuses Liu of discovering an unknown authentication vulnerability in Apple’s infrastructure and exploiting it deliberately after joining OpenAI. Instead of notifying Apple about the security flaw, he allegedly celebrated his find with a former colleague, writing, “LOL, I found out I can access the [network storage], so funny.”
Apple claims that Liu continued to access internal servers for weeks, downloading dozens of confidential documents, including technical presentations, development files, PDFs, spreadsheets, and thousands of pages of internal project documentation. Among these were extensive documents on manufacturing and testing processes for Main Logic Boards (MLBs), the complex main circuit boards of Apple’s hardware products.
Preparation of New OpenAI Employees
Another critical aspect of the lawsuit involves Liu’s communication with a former Apple employee who also later joined OpenAI. Apple alleges that Liu had specifically prepared her for job interviews while she was still at Apple.
He reportedly advised her on which confidential documents to study before the interviews and which internal project folders to focus on. Moreover, he allegedly explained how files could be copied without drawing the attention of Apple’s security team. For sensitive conversations, he suggested switching to the LINE messenger service to avoid tracking through Apple’s systems.
Tang Tan Accused of Controlling Interview Processes
The accusations against Tang Yew Tan are equally serious. A long-time Apple manager responsible for product design on the iPhone and Apple Watch, Tan later co-founded io Products and now serves as Chief Hardware Officer at OpenAI.
Apple accuses Tan of leveraging his in-depth knowledge of internal Apple projects to extract confidential information from candidates during interviews. The complaint asserts that Tan used internal project code names and questioned candidates about the development status of previously unannounced products.
One unusual claim involves so-called “Show-and-Tell” sessions, where candidates were reportedly asked to bring real hardware components from their work at Apple. Specific components cited include batteries, system-in-package modules (SiP), main logic boards, shields, and other parts. One applicant expressed surprise, stating he didn’t even know such parts could be taken from the company.
Interview Guidelines with Unusually Specific Requirements
Apple asserts that these practices were not isolated incidents. Instead, candidates were asked to prepare extensive technical presentations about their work at Apple. OpenAI explicitly requested information on CAD designs, design artifacts, prototypes, manufacturing processes, components development, simulation tools, and collaboration with suppliers.
Apple argues that many of these details go well beyond generally available expertise and constitute protected trade secrets. Consequently, these interview processes appear targeted at systematically siphoning off internal Apple knowledge.
Suppliers Also Allegedly Impacted
The complaint does not limit itself to former employees. Apple contends that OpenAI specifically contacted established Apple suppliers. Utilizing internal knowledge about Apple’s supply chain and manufacturing processes, OpenAI allegedly persuaded partner companies to apply confidential methods for their own use.
One specific example involves proprietary metal processing techniques that Apple claims to have developed with a long-time partner. The lawsuit asserts that OpenAI led the supplier to believe it had Apple’s approval to use these same processes for OpenAI.
“Need to Know” Document as Offboarding Handbook
Another detail in the lawsuit concerns an internal Apple document labeled “Need to Know.” This document outlines security measures and checking processes for departing employees.
Apple claims that Tang Tan continued to use or acquire this document after his departure. It was allegedly made available to new hires at OpenAI before their resignations from Apple, allowing them to prepare for Apple’s security checks. Apple suggests this might explain why so many employees transitioning to OpenAI avoided security discussions or managed their resignations unusually.
Apple views the described actions as part of a broader strategy to build OpenAI’s hardware business. The company emphasizes that over 400 former Apple employees are now employed at OpenAI. Importantly, Apple clarifies that this lawsuit does not target the existing partnership regarding the integration of ChatGPT into Apple Intelligence. The legal proceedings solely concern the alleged misappropriation of trade secrets and their use in the hardware sector.
Whether these extensive allegations are substantiated remains to be seen, as the court now needs to evaluate the claims. Until then, they remain mere accusations from Apple. OpenAI and the other defendants have the opportunity to contest these allegations during the court proceedings. Drew Pusateri, OpenAI’s communications director, commented on X that the company has no interest in the trade secrets of other firms.
