Apple filed A federal lawsuit was filed Friday accusing OpenAI, its hardware subsidiary io Products and two former Apple employees of using stolen trade secrets to speed development of OpenAI’s planned consumer devices. The case puts the companies in direct legal conflict while they remain partner when integrating ChatGPT into Apple products.
The 41-page lawsuit, filed in the U.S. District Court for the Northern District of California, names Tang Yew Tan, OpenAI’s chief hardware officer, and Chang Liu, an engineer. Apple claims that the defendants busy in a “coordinated pattern of institutional-level misconduct” involving confidential product designs, manufacturing methods and supplier information. Apple also claims OpenAI used former employees, Interviewsand suppliers to obtain proprietary hardware information. The claims have not been tested in court.
Liu worked at Apple for eight years before joining OpenAI in January 2026. Apple claims he failed to return a company laptop and later discovered that an authentication error still allowed him access to Apple’s network storage. According to the ComplaintLiu wrote to a former colleague: “LOL I found out I can access the (network storage), so funny.” He then allegedly downloaded dozens of files, including technical presentations, technical data and information about unreleased products. One collection contained more than 1,000 pages.
The second employee, Tanspent 24 years at Apple. Most recently, he was vice president of product design for the iPhone and Apple Watch. Apple claims that Tan used internal project names when interviewing Apple employees. It is also claimed that candidates were asked to bring “real parts”, prototypes and design materials to OpenAI interviews for “show and tell” sessions. Materials requested reportedly included batteries, motherboards, shields and system-in-package.
Apple has filed four lawsuits in federal court Trade Secrets Defense Law and two breach of contract claims. Under 18 USC §1836(b)(1)An owner of a trade secret may bring a civil action if the secret relates to a product or service used or intended for use in interstate or foreign commerce. The law allows for injunctions, compensatory damages, reasonable royalties and, in cases of willful and fraudulent conduct, compensatory damages.
The dispute complicates an important business relationship. Apple integrated ChatGPT joins Siri and Apple Intelligence after announcing a partnership with OpenAI in 2024. Apple states that the integration agreement is independent of the present case and is not being challenged.
The lawsuit follows previous disputes in the technology sector involving departing employees. Apple sued Chip startup Rivos in 2022 for allegedly stealing chip design information before reaching a settlement in 2024. Waymo too sued Uber after claims a former engineer stole confidential self-driving technology; This case was settled in 2018.
Apple argues that it Product designsTesting methods, component technologies, manufacturing processes and supplier relationships are proprietary trade secrets developed through decades of work and hundreds of billions of dollars in investments. Apple is seeking preliminary and permanent injunctive relief under Section 1836, the preservation of electronic evidence, the return of its information, compensatory damages, and a jury trial. The defendants must now respond to the lawsuit. The court will ultimately decide whether Apple identified legally protected trade secrets and whether they were improperly acquired or used.
