Background of the Lawsuit

Apple has initiated legal proceedings against OpenAI, claiming that former employees misappropriated confidential information for the benefit of the artificial intelligence company. The lawsuit, filed in the U.S. District Court for the Northern District of California, centers on allegations that Apple's trade secrets were systematically stolen and used to advance OpenAI's hardware development efforts. The case highlights growing tensions between two tech giants as they compete for talent and technological supremacy.

Apple's complaint specifically names Tang Tan, a former vice president of product design who led iPhone and Apple Watch design before leaving in February 2024 to join Jony Ive's io Products startup, and Chang Liu, a senior system electrical engineer who departed in January 2026 to work directly at OpenAI. The suit also names OpenAI and io Products as defendants, though Jony Ive, Evans Hankey, and Scott Cannon—all former Apple employees now associated with io—are not personally mentioned in the initial filing.

The Allegations of Trade Secret Theft

According to Apple, the company first raised concerns with OpenAI in February, asking the organization to investigate and address suspicious activities. OpenAI never responded to those concerns, prompting Apple to pursue legal action. The filing describes the identified misconduct as "the tip of the iceberg," suggesting that far more extensive theft may have occurred behind closed doors at OpenAI.

The lawsuit outlines a pattern of behavior that includes using insider knowledge during job interviews to extract additional confidential information. Tang Tan is accused of employing internal Apple project codenames to question candidates about unannounced products. In one instance, Tan allegedly directed a job candidate who was still employed at Apple to bring actual hardware components—including prototypes and CAD files—to interviews for "show and tell" sessions. The candidate reportedly expressed surprise, saying he "didn't even know we could take those from the office."

Apple further alleges that OpenAI instructed potential hires to bring "CAD/design artifacts" and "prototypes," and to divulge details about subsystem and component selection, as well as tools and methodologies used for system integration. In a particularly egregious example, a candidate began screenshotting and downloading files related to a highly confidential Apple project hours before an interview with Tan, who then solicited more information about that same project once the interview started—an "established pattern," according to the complaint.

Specific Cases: Tang Tan and Chang Liu

Tang Tan is also accused of possessing and distributing an internal Apple "Need to Know" document to new OpenAI hires before they formally resigned from Apple. This document included Apple's departure security protocols. Apple's investigation revealed a consistent pattern of employees who left for OpenAI taking steps to evade security processes intended to protect confidential information.

Chang Liu's alleged misconduct is equally concerning. After leaving Apple, Liu reportedly exploited a security bug to download confidential engineering files. Rather than reporting the vulnerability, he mocked the security lapse in messages, writing "LOL" and "so funny." Liu also failed to return an Apple-issued laptop after his departure. Apple claims that Liu downloaded a compilation of technical files spanning over a thousand pages, including detailed manufacturing documents for the complex circuit boards used in Apple hardware products. Furthermore, Liu allegedly coached another Apple employee—whom he was recruiting for OpenAI—on which confidential materials to study before her interview.

Wider Implications and OpenAI's Hardware Efforts

The lawsuit also describes incidents involving external partners. Apple alleges that OpenAI used a trusted Apple vendor to carry out a proprietary metal-finishing technique, misleading the partner into believing it had Apple's permission. Additionally, OpenAI approached a second longtime Apple supplier dealing with power and battery manufacturing, using insider terminology to ask "targeted questions" about specific Apple components.

These allegations come as OpenAI accelerates its hardware ambitions. Jony Ive, Apple's former chief design officer, leads OpenAI's hardware efforts. OpenAI acquired Ive's startup, io Products, as part of a $6.5 billion deal last year, bringing in over 50 engineers, developers, and employees—many with Apple backgrounds. Ive founded io in collaboration with Scott Cannon, Evans Hankey, and Tang Tan, all of whom previously worked at Apple. Evans Hankey served as Apple's design chief after Ive's departure and left in 2022 before reuniting with Ive at io.

Rumors about OpenAI's hardware plans have circulated for months. In April, analyst Ming-Chi Kuo reported that OpenAI is developing its own smartphone, potentially launching as early as 2028. Meanwhile, The Information has covered OpenAI's work on a HomePod-style smart speaker. The lawsuit's timing coincides with these developments, as Apple seeks to protect its intellectual property before OpenAI brings a consumer hardware device to market.

Corporate Relations and Legal Context

The legal filing also notes that the suit does not involve Apple's existing partnership with OpenAI to integrate ChatGPT into Siri. However, the relationship between the two companies has been fraught. Bloomberg recently reported that OpenAI was preparing "legal action" against Apple over how that partnership was handled. Today's lawsuit from Apple appears to preempt that tension while focusing squarely on trade secret theft.

Apple asserts that Tan and Liu are just two of many Apple employees who have left for OpenAI. The filing states that over 400 former Apple employees currently work at OpenAI, underscoring the scale of the talent drain. Apple's complaint seeks injunctive relief and damages, and the company has made clear it will take all appropriate steps to defend its teams' innovations. As the case unfolds, it will likely serve as a critical test for protecting intellectual property in the fast-moving AI and hardware landscape.

Source:9to5Mac News