Apple filed a wide-ranging trade secret lawsuit against OpenAI on July 10 in the U.S. District Court for the Northern District of California, accusing the ChatGPT maker of a coordinated scheme to lift confidential Apple hardware know-how in order to build a competing AI device. The filing names OpenAI, its Chief Hardware Officer Tang Tan, and former Apple electrical engineer Chang Liu as defendants.
Key Highlights
- Apple alleges the theft ran "at every level" of OpenAI's hardware operation, from individual technical staff up through leadership.
- Tang Tan, a former Apple vice president who joined OpenAI to lead hardware, is accused of instructing Apple job candidates to bring "actual parts" from Apple to interviews for "show and tell" sessions.
- Chang Liu allegedly retained an Apple-issued laptop after leaving, exploited a bug to reach Apple cloud file storage, and downloaded dozens of files labeled confidential while building hardware at OpenAI.
- Apple is seeking damages, an injunction, and exemplary damages for what it calls willful and malicious conduct.
- The case marks a sharp break from the 2024 Apple-OpenAI partnership that put ChatGPT inside Siri.
Details
According to the complaint, OpenAI's alleged conduct went beyond isolated leakers. Apple claims OpenAI systematically coached departing employees on how to sidestep Apple's security processes, then used the extracted material to compress its hardware development timeline. One passage cited in press coverage describes Tan directing job candidates still working at Apple to bring physical parts to interviews so his OpenAI team "can elicit still more Apple confidential information."
Apple also points to a proprietary metal finishing technique that OpenAI is alleged to have used after misleading a manufacturing partner into believing it had Apple's permission. The filing frames this as part of a broader pattern rather than a one-off incident.
The Chang Liu allegations are particularly detailed. Apple says Liu discovered a bug that let him keep reaching Apple's cloud storage after his departure, then pulled dozens of confidential files while working on OpenAI hardware. He and Tan are named as individual defendants alongside OpenAI itself.
Impact
The suit lands squarely on OpenAI's most ambitious non-model bet. In 2025, OpenAI acquired former Apple design chief Jony Ive's startup IO Products for about 6.4 billion dollars to build a dedicated AI device. If Apple wins an injunction, OpenAI could be blocked from shipping hardware that the court finds tainted by Apple secrets — a scenario that would set back years of design, tooling, and supplier work.
For the broader AI industry, the case tests how far U.S. trade secret law reaches when talent flows between hyperscalers and frontier labs. Hardware and model teams at companies like Meta, Google, Microsoft, and Anthropic all recruit heavily from Apple's silicon and product organizations. A high-profile Apple win would tighten hiring practices across the sector; an OpenAI win would embolden aggressive recruiting.
Background
Apple and OpenAI struck a high-profile partnership in 2024 to integrate ChatGPT into Apple Intelligence on iPhone. Relations cooled once OpenAI signaled a move into consumer devices, culminating in the IO Products acquisition. Tan's departure from Apple to lead hardware at OpenAI, followed by other engineers, drew immediate attention inside Cupertino. The complaint suggests Apple's internal investigation began well before the public filing.
What's Next
OpenAI has not yet filed a response and will have an opportunity to move to dismiss or answer the complaint. Discovery — including devices, chat logs, and interview records — is where the case will most likely be decided. In parallel, expect scrutiny of OpenAI's device supply chain and design partners, and possibly a temporary restraining order motion from Apple if the device nears launch.
Source: TechCrunch