Apple has initiated legal proceedings against OpenAI, alleging a pattern of trade secret theft and aggressive poaching of its employees. The lawsuit, filed on Friday, contends that OpenAI and specific former Apple staff members actively sought confidential information related to Apple’s hardware. This legal action surfaces as OpenAI, primarily known for its software advancements, has recently hinted at an expansion into hardware development. A spokesperson for OpenAI, in response to the allegations, stated the company has “no interest in other companies’ trade secrets” and remains committed to “building innovative technology that empowers people everywhere.”
The complaint details what Apple describes as a methodical appropriation of its proprietary data. Central to these claims is Chang Liu, a former senior system electrical engineer at Apple. Liu, who departed Apple in January 2026 to join OpenAI, is accused of failing to return his company laptop or complete an exit interview. The lawsuit further alleges that Liu exploited an “authentication bug” to access Apple’s internal systems, subsequently downloading numerous confidential files. These files reportedly included details on unreleased products, technical specifications, and engineering presentations, painting a picture of deliberate data extraction.
Beyond his own alleged actions, Liu is implicated in coaching a former Apple colleague during a recruitment attempt by OpenAI. He reportedly advised this colleague on how to evade detection by Apple’s security protocols while transferring files and even suggested specific confidential materials to review in preparation for an OpenAI interview. This suggests a coordinated effort to not only acquire sensitive information but also to facilitate its transfer through illicit means.
Another key figure named in the lawsuit is Tang Yew Tan, OpenAI’s chief hardware officer. Tan, who spent 24 years at Apple, previously served as the vice president of product design for the iPhone and Apple Watch, overseeing some of Apple’s most sensitive projects. The complaint asserts that in the months leading up to his departure, Tan emailed himself information concerning Apple’s suppliers and internal summaries pertaining to the consumer electronics industry. After transitioning to OpenAI, Tan is accused of attempting to extract information on Apple products from job candidates during interviews, reportedly requesting “actual” Apple parts for “show and tell” sessions.
Apple characterizes its findings as merely the “tip of the iceberg,” expressing concern over a lack of transparency regarding OpenAI’s internal conduct. The company suggests that such misconduct is “normalised and exemplified by leadership” within OpenAI. The lawsuit provocatively claims that OpenAI’s “nascent hardware business” is built on “shaky foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.” This comes as OpenAI teased the upcoming release of a new hardware product, the Codex Micro, a programmable keyboard, with a teaser trailer indicating a July 15th release date. The legal battle underscores the intense competition and heightened stakes in the rapidly evolving artificial intelligence and hardware sectors.
