Apple sues OpenAI for trade secret theft involving former employees
Apple filed a lawsuit Friday against OpenAI in federal court, alleging the AI company systematically stole trade secrets related to upcoming hardware products. The suit names two former Apple employees now at OpenAI: Tang Tan, the hardware chief who spent 24 years at Apple, and Chang Liu, a senior engineer. Apple claims Tan directed job candidates to bring Apple components to interviews and used Apple's confidential project codenames during recruiting. The company also alleges Liu kept a work laptop, exploited a security bug to access Apple's network files, and downloaded dozens of confidential documents. OpenAI denies the allegations, saying it has no interest in other companies' trade secrets. The lawsuit marks a dramatic reversal from their 2024 partnership when ChatGPT was integrated into iPhones. Apple also notes that over 400 former employees work at OpenAI. The case is expected to affect OpenAI's planned hardware release and upcoming IPO.
Key facts
- Apple filed lawsuit in U.S. District Court for Northern District of California on July 10, 2026
- Suit names Tang Tan (24-year Apple veteran, now OpenAI Chief Hardware Officer) and Chang Liu (senior electrical engineer) as defendants
- Liu allegedly kept Apple laptop, exploited authentication bug to access confidential network files, and downloaded dozens of confidential documents
- Tan allegedly directed job candidates from Apple to bring actual hardware parts to OpenAI interviews
- Apple claims Tang Tan circulated Apple's confidential offboarding document to teach new OpenAI hires to evade Apple security checks
- Apple states over 400 former employees now work at OpenAI
- OpenAI denies allegations, stating it has no interest in trade secrets and is focused on building innovative technology
- Companies entered high-profile partnership in 2024 when ChatGPT was integrated into iPhone operating system
- OpenAI acquired former Apple designer Jony Ive's hardware startup io Products for 6.4 to 6.5 billion dollars in 2025
How different outlets framed it
Left-leaning coverage: Progressive tech coverage tends to highlight the precarious position of large corporations against disruptive innovators. Semafor analysis notes that Apple is 'under major pressure from AI in general' and emphasizes the philosophical tension between Apple's 'walled garden' model and OpenAI's push for more open integration, suggesting the lawsuit may be partly driven by competitive anxiety rather than solely by misdeeds.
Limits of this briefing
The allegations are from Apple's lawsuit filing and represent the iPhone maker's claims rather than proven facts. OpenAI has denied all allegations. The court has not yet evaluated the evidence, and trade secret theft cases in Silicon Valley are complex and difficult to prove. Right-leaning media coverage was not prominently featured in available sources.
Sources
- CNN Business: Apple accuses OpenAI of using stolen trade secrets to create its upcoming AI gadgets in new lawsuit Centre
- CNBC: Apple sues OpenAI alleging trade secret theft, says scheme was 'at every level' Centre
- Axios: Apple sues OpenAI for trade secret theft Centre
- Semafor: Apple's OpenAI lawsuit highlights broader tensions Left
- TechCrunch: Apple sues OpenAI over alleged trade secret theft Centre