Apple has filed a lawsuit against OpenAI, accusing the rival of stealing trade secrets and intellectual property to develop an AI hardware device. The complaint, filed in the Northern District of California, alleges a months-long scheme to pilfer confidential information about unreleased devices, components, manufacturing processes, and supplier relationships.
Tang Tan and Chang Liu at the Center of the Alleged Leak
According to the legal filing, former Apple designer Tang Tan, now OpenAI's hardware lead, and former electrical engineer Chang Liu directed Apple employees interviewing at OpenAI to provide details about unreleased products, technical specifications, and vendor contacts. Apple claims Tan used his insider knowledge of exit procedures to help colleagues smuggle sensitive data without raising red flags. Specifically, Tan allegedly retained an internal managers' document marked 'Need to Know' that outlines departure security protocols, sharing it with new hires before they gave notice to Apple.
Sponsored Protocol
A Systematic Pattern of Data Theft Uncovered
Apple's investigation revealed a widespread practice: many employees leaving for OpenAI emailed themselves confidential information. Liu kept an Apple-issued laptop after resigning and exploited a vulnerability to download dozens of confidential documents while already working at OpenAI. He also maintained contact with Yu-Ting 'Alyssa' Peng, a current Apple employee who continued to feed him updates on projects, vendor decisions, and engineering details. In one message, Liu texted Peng: 'LOL, I found out I can access the network storage, so funny.'
OpenAI Accused of Deceiving Apple Suppliers
The lawsuit claims OpenAI used stolen intelligence to approach Apple's suppliers, even tricking one company into applying a proprietary metal-finishing technique for an OpenAI device by falsely claiming Apple had authorized it. Apple contends that this behavior reveals a corporate culture that normalizes intellectual property theft. The Cupertino giant asserts that OpenAI's entire hardware business rests on a 'rotten to its core' foundation built on illegally misappropriated secrets.
Sponsored Protocol
400 Former Apple Employees Now at OpenAI, But Not Targeted
Apple is not going after the massive talent drain to OpenAI, which the complaint notes numbers over 400 former employees. However, it underscores the phenomenon as symptomatic of systematic trust violations. Former Apple design chief Jony Ive, now at OpenAI, is not named in the suit, nor is CEO Sam Altman cited as a defendant. Apple also clarified that the partnership for ChatGPT integration in Siri is not part of the dispute.
Sponsored Protocol
Apple is seeking an injunction to prevent OpenAI from using or disclosing the stolen technologies, plus damages to be determined at trial. It has also filed breach of contract claims against Tan and Liu. This case marks a breaking point in relations between the two tech giants, already strained after the Siri-ChatGPT integration controversy. For more on AI transparency implications, see the article on Anthropic's black box revelations. The case also highlights how missing context leads to AI agent errors, as reported in this survey. For a legal definition of trade secrets, refer to Wikipedia.
Source: https://www.macrumors.com/2026/07/10/apple-sues-openai
