'This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI'
Apple has filed a lawsuit against OpenAI and two former senior employees, accusing them of a systematic campaign to steal its most sensitive hardware trade secrets to accelerate the artificial intelligence company's push into consumer devices.
The complaint, filed in the US District Court for the Northern District of California, names OpenAI, its hardware subsidiary io Products, former Apple VP of Product Design Tang Yew Tan, and former Senior System Electrical Engineer Chang Liu as defendants.
Apple is seeking injunctions, compensatory and exemplary damages, as well as the return of all misappropriated materials.
"This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI. Apple brings this suit to put a stop to it," the company states in the complaint.
"At every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information."
Engineer allegedly exploited security bug
Central to Apple's case is the conduct of Liu, who left Apple in January 2026 to join OpenAI.
According to the complaint, Liu failed to return an Apple-issued laptop upon departure and later discovered an authentication vulnerability that allowed him to access Apple's internal network storage after his employment had ended.
Rather than report the bug, Apple alleges that Liu exploited it, telling a current Apple employee: "LOL, I found out I can access the [network storage], so funny."
Liu then allegedly downloaded dozens of confidential files, including engineering presentations, technical specifications, and proprietary project data, while actively developing hardware for OpenAI.
Apple further alleges he coached the Apple employee, identified as Alyssa Peng, on how to copy confidential files "to avoid trouble with the security team," and directed her to communicate privately over the LINE Messenger app to avoid detection. Peng departed Apple for OpenAI in April 2026.
Hardware chief's 'show and tell' sessions
Tan, who spent 24 years at Apple before becoming OpenAI's Chief Hardware Officer, faces separate but related allegations.
Apple claims Tan used Apple's internal project codenames during job interviews to probe candidates about confidential, unreleased products, and directed candidates to bring physical hardware components. This includes batteries, circuit boards, and product samples to interviews for what Apple describes as "show and tell" sessions.
The complaint also alleges Tan distributed an internal Apple document marked "Need to Know," detailing the company's employee departure security procedures, to incoming OpenAI hires before they had notified Apple of their resignations.
Apple says Tan further advised recruits not to disclose their next employer, allowing them to remain at Apple and retain access to its systems for longer.
Misconduct extended to supplier network
Apple alleges the misconduct extended to its supplier network. The complaint claims OpenAI had a trusted Apple manufacturing partner carry out Apple's proprietary metal-finishing techniques for OpenAI's benefit, "misleading the partner to believe they had Apple's permission."
OpenAI, which Apple notes employs more than 400 former Apple staff, did not respond to a letter Apple sent in February raising its concerns. Apple says that silence necessitated the lawsuit.
OpenAI has not filed a response in court. In a statement reported by The Associated Press, spokesperson Drew Pusateri said: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."
The lawsuit marks a significant deterioration in what was once a high-profile partnership.
In 2024, Apple and OpenAI announced an agreement to integrate ChatGPT into Apple products, but relations have since soured.
According to a CNN report, OpenAI had been considering its own legal action against Apple, potentially alleging breach of contract over claims that Apple had not sufficiently integrated and promoted OpenAI's products across its devices.
