The relationship between Apple and OpenAI, which began two years ago with the integration of ChatGPT on the iPhone, has turned into a legal battle. The Cupertino-based tech giant has filed a lawsuit against OpenAI, its hardware division io Products, and two former key employees, Tang Tan and Chang Liu, accusing them of illegally obtaining confidential information to accelerate the development of AI-powered devices. The complaint, filed in a federal court in California, claims that the transfer of sensitive data was not an isolated incident but a coordinated plan to give the competitor an advantage in the AI hardware space.
The alleged theft: product designs, manufacturing processes, and supplier data
According to legal documents, Apple discovered that Tang Tan and Chang Liu, respectively former vice president of hardware design and electrical engineer, had copied and transmitted confidential documents related to iPhone and Apple Watch projects, production methodologies, and even supplier contracts. The lawsuit specifically references Tan's role as OpenAI's chief hardware officer after the acquisition of io Products, a company founded by Jony Ive. Apple claims that this information allowed OpenAI to fast-track its hardware development, bypassing years of research and development. The Cupertino giant is seeking unspecified damages and injunctions to prevent the use of the allegedly stolen information. The dispute has already drawn reactions: OpenAI has swiftly responded to the allegations, calling the lawsuit baseless and vowing to defend itself in court.
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Tang Tan and Chang Liu: the two former employees at the center of the controversy
Tang Tan worked at Apple for over 15 years, contributing to iconic products like the iPhone and Apple Watch. His move to OpenAI after the io Products acquisition raised immediate suspicions within Apple. Chang Liu, a former electrical engineer specialized in integrated circuits, joined OpenAI in early 2026. The lawsuit alleges that Liu downloaded thousands of files containing non-public technical specifications before leaving the company. Apple argues that the behavior of both former employees violates non-disclosure agreements and federal trade secret laws. This case could reshape the dynamics between tech giants and highlights the challenges of protecting intellectual property in the age of artificial intelligence.
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Implications for the future of AI hardware and competition
This lawsuit could redefine the balance among tech giants. Apple and OpenAI were partners in distributing ChatGPT on iPhones, but this legal conflict risks damaging that collaboration. If the allegations are confirmed, OpenAI may have to revise its AI hardware plans, including wearable devices and smart home assistants. For Apple, the case represents an effort to protect one of its most valuable assets: intellectual property. According to legal experts cited by Reuters, the case could drag on for years, but it is already drawing attention to a hot topic: talent mobility and trade secret protection in the era of AI. External source: Reuters.
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Source: https://www.androidauthority.com/apple-sues-openai-over-trade-secret-theft-3686592