Apple Sues OpenAI for Stealing Hardware Trade Secrets
Taylor Wilson
Apple filed suit against OpenAI in a California federal court, alleging systematic extraction of confidential iPhone and unreleased-product information through former employees — a case that strikes at OpenAI's hardware ambitions and could reshape the AI-device competitive landscape.
What exactly is Apple alleging?
The core claim: OpenAI systematically extracted Apple's confidential information through its hiring process, including asking candidates to bring Apple design documents and prototypes to interviews.
This means → Apple views this not as a few employees going rogue, but as an organized intelligence-gathering operation by OpenAI.
The complaint also alleges OpenAI used a proprietary metal surface-finishing process belonging to Apple in its own hardware development — and misled partners by claiming it had Apple's authorization.
What did the two key individuals allegedly do?
Tang Tan, OpenAI's chief hardware officer, spent roughly 24 years at Apple, rising to VP of product design for iPhone and Apple Watch. Apple alleges he used Apple's internal confidential project code names during recruiting and coached departing Apple employees on how to bypass company security procedures.
In plain terms = he is accused of handing colleagues the "access codes" so they could carry information out the door.
Chang Liu, a former senior systems electrical engineer who spent about 8 years at Apple. Apple alleges he kept a company laptop after leaving, used it to download confidential technical files, and shared Apple secrets with other Apple employees applying to OpenAI.
Why is OpenAI building hardware in the first place?
Last year OpenAI acquired io — the hardware startup founded by former Apple chief design officer Jony Ive — for $6.5 billion. io is also named as a defendant in this lawsuit.
Industry analysts had predicted OpenAI's hardware product could be a smartphone that replaces apps with AI agents.
This means → OpenAI is not just a software company anymore; it is trying to build a direct iPhone competitor — which elevates Apple's motive from "protecting secrets" to "defending its core business."
What is Apple asking for, and what should we watch?
Apple wants the court to bar OpenAI from using or disclosing its trade secrets, order the return of all confidential materials, and preserve evidence.
Apple says it sent a letter to OpenAI in February raising concerns and received no response. The complaint states: "This is just the tip of the iceberg."
This reflects the fact that Apple itself does not fully know how much of its confidential information OpenAI possesses — whether the discovery process — a legal procedure forcing both sides to disclose evidence — can reveal the full picture will be the key suspense of this lawsuit.
Content is for reference only, not financial advice.