Apple accused OpenAI of using stolen trade secrets to accelerate its push into consumer hardware, alleging former Apple employees downloaded confidential files, coached recruits on avoiding security reviews, and were told to bring proprietary Apple parts and prototypes to OpenAI job interviews.
Apple filed the 41-page complaint on July 10 in the U.S. District Court for the Northern District of California. The lawsuit names former Apple employees Chang Liu and Tang Yew Tan, along with OpenAI Foundation, OpenAI Group PBC, and io Products LLC.
OpenAI acquired io Products, co-founded by former Apple designer Jony Ive, Tan and two others, in a deal valued at nearly $6.5 billion as part of its push into consumer hardware.
Apple alleges trade secret misappropriation against all defendants and breach of contract against Liu and Tan. The company wants the court to block the defendants from using its confidential information, order the return of Apple property, preserve evidence, and award damages.
What it could mean for consumers
The lawsuit does not allege that customer data was exposed or that Apple’s ChatGPT integration will end. Apple’s complaint specifically states that the agreement governing ChatGPT’s integration into Apple Intelligence is not part of the case.
OpenAI CFO Sarah Friar told The Associated Press in April that the company expected consumer hardware toward the end of 2026. It remains unclear whether Apple’s lawsuit will affect that schedule.
The dispute instead centers on OpenAI’s consumer hardware plans. Apple wants the court to stop the defendants from using the disputed information and require them to return Apple materials.
It remains unclear whether the lawsuit will delay or change any OpenAI device. The court has not ruled on Apple’s requests, and OpenAI has not publicly detailed the consumer product it plans to release.
Apple details alleged file access
Liu spent more than eight years at Apple as a senior system electrical engineer for the iPhone before joining OpenAI in January, according to the complaint.
Apple alleges Liu failed to return an Apple-issued laptop and later used a former colleague’s authenticated Apple computer. The company also claims he exploited a previously unknown authentication flaw to access Apple’s network storage after leaving.
The complaint says Liu reacted to the access by writing “LOL” and calling it “so funny.”
Apple alleges he then downloaded dozens of confidential hardware files while working on OpenAI products. The materials allegedly included more than 1,000 pages of technical information involving unreleased products, engineering work, manufacturing processes, and testing.
Apple also claims Liu coached a colleague preparing to join OpenAI on how to copy files and “avoid trouble with the security team.”
Apple says recruits were told to bring parts
Tan worked at Apple for 24 years and most recently served as vice president of product design for the iPhone and Apple Watch. He later co-founded io Products and now serves as OpenAI’s chief hardware officer.
Apple alleges Tan used internal Apple project names during OpenAI interviews to ask candidates about unreleased products.
The complaint also claims he directed Apple employees to bring “Actual parts” to interviews for “show and tell,” including batteries, logic boards, shields, housings, and other components.
Apple further alleges OpenAI asked candidates to provide prototypes, “CAD/design artifacts,” supplier information, and details about Apple’s engineering and manufacturing methods.
More than 400 former Apple employees now work for OpenAI, according to the complaint. Apple does not claim that hiring them was unlawful. Instead, it alleges OpenAI used their confidential knowledge to obtain more information from current employees and suppliers.
OpenAI denies interest in Apple’s secrets
Apple alleges it contacted OpenAI in February to raise concerns and ask what safeguards the company had put in place. Apple claims OpenAI did not respond.
OpenAI said it was reviewing the lawsuit. Spokesperson Drew Pusateri said in a statement reported by The Associated Press that the company has “no interest in other companies’ trade secrets.”
Apple and OpenAI remain technology partners through ChatGPT’s integration into Apple Intelligence. Apple’s complaint states that the agreement governing that partnership is not part of the lawsuit.
The defendants have not yet filed answers to Apple’s complaint, and the court has not ruled on the allegations.
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