Apple filed a lawsuit Friday in the U.S. District Court for the Northern District of California accusing OpenAI of trade secret theft and breach of contract, alleging that the AI company’s senior leadership orchestrated a systematic effort to steal confidential information about unreleased Apple products.
The 24-page complaint centers on Tang Tan, OpenAI’s Chief Hardware Officer who spent 24 years at Apple, most recently as vice president of product design for the iPhone and Apple Watch. Apple alleges Tan used confidential Apple project code names during OpenAI’s recruiting process, asked job candidates to bring Apple hardware components to their interviews, coached departing Apple employees on how to evade the company’s security procedures, and solicited details about unannounced products.
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The lawsuit arrives as OpenAI is rumored to be developing its first hardware product, which analysts say could compete directly with the iPhone. In April, industry analyst Ming-Chi Kuo suggested the device might be a smartphone relying on AI agents rather than traditional apps, representing what some view as a significant threat to Apple’s core business.
Allegations extend beyond Tan
The complaint also names Chang Liu, a former senior systems electrical engineer at Apple who spent eight years at the company before joining OpenAI in 2026. Apple alleges Liu failed to return an Apple-issued laptop after leaving and used it to download confidential technical documents, including specifications for unannounced technologies, engineering presentations, and proprietary project data.
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According to the filing, Liu also shared Apple’s confidential information with other Apple employees applying for jobs at OpenAI, advising at least one candidate on what to study before an interview. Apple says it sent a letter to OpenAI in February raising concerns but received no response.
Hardware ambitions at stake
Apple’s former lead designer Jony Ive’s device startup io was acquired by OpenAI last year in a $6.5 billion deal to support the AI company’s hardware ambitions. While io was named in the filing, Ive was not directly accused of wrongdoing.
The lawsuit alleges OpenAI’s behavior included asking Apple employees to bring designs and prototypes to interviews and answer questions about component and vendor selection processes. Apple claims its investigation revealed OpenAI used Apple’s confidential information while developing its own hardware product, citing a proprietary metal finishing technique that OpenAI allegedly used after misleading a partner into believing it had Apple’s permission.
Apple is asking the court to bar OpenAI from using or disclosing its trade secrets, require the return of confidential materials, and preserve evidence. The filing states: “This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership.”
In a prepared statement, Apple said: “At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously.”
OpenAI was asked for comment but has not yet responded. The filing is available here. This story is developing.
Frequently Asked Questions
What are the specific allegations against Tang Tan?
Apple alleges that Tang Tan used Apple’s confidential project code names during recruiting, asked job candidates to bring Apple hardware components to interviews, coached departing employees on evading security, and solicited details about unannounced products.
What is Apple seeking from the court?
Apple is asking the court to bar OpenAI from using or disclosing its trade secrets, require the return of all confidential materials, and preserve evidence related to the case.
How does this lawsuit relate to OpenAI’s hardware plans?
The lawsuit comes as OpenAI is reportedly developing its first hardware product, potentially a smartphone that could compete with the iPhone. Apple alleges OpenAI used stolen trade secrets in developing this device.
Has OpenAI responded to the lawsuit?
As of the filing, OpenAI had not responded to Apple’s concerns raised in a February letter. The company was asked for comment but has not yet provided a statement.
