Apple Sues OpenAI Over Alleged Trade Secret Theft Tied to AI Hardware Plans
Apple has filed a federal lawsuit accusing OpenAI of stealing trade secrets to accelerate its push into consumer hardware, turning a former partnership into one of the highest-stakes legal fights in the AI industry.
The complaint, filed in the Northern District of California, names OpenAI, related corporate entities, io Products, and two former Apple employees, Tang Yew Tan and Chang Liu. Apple alleges OpenAI used former employees, recruiting practices, and supplier relationships to obtain confidential information tied to Apple hardware design and manufacturing.
Apple claims Liu kept an Apple-issued laptop after leaving the company and used an authentication bug to access Apple’s internal network and download confidential hardware files. The company also alleges Tan emailed himself Apple supplier information and encouraged Apple employees to bring physical parts to OpenAI interviews.
OpenAI denied interest in Apple’s secrets. “We have no interest in other companies’ trade secrets,” the company said in a statement reported by Reuters.
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The case matters because OpenAI has been moving beyond software. The company acquired io Products, the hardware startup connected to former Apple designer Jony Ive, in a deal valued near $6.5 billion. AP reported that OpenAI has continued pursuing a consumer device expected toward the end of the year.
The legal fight could affect more than damages. If Apple wins early restrictions, OpenAI’s hardware work could face delays, internal reviews, and limits on disputed information. If OpenAI prevails, the case may strengthen the argument that companies cannot use trade secret law to block ordinary employee movement in California.
Industry reaction has focused on that line. Legal and tech commentators noted that California protects worker mobility, meaning Apple’s case likely depends on proving specific misconduct rather than simply showing OpenAI hired hundreds of former Apple employees.
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