Apple filed a lawsuit against OpenAI on Friday in the U.S. District Court for the Northern District of California, alleging that former Apple employees stole trade secrets to accelerate OpenAI's AI hardware development. The complaint names two former senior Apple staffers as central figures and seeks injunctive relief and damages - a move that could delay or force a redesign of OpenAI's planned hardware products.
What the lawsuit alleges
Apple claims that more than 400 former Apple employees now work at OpenAI, many of whom had access to unreleased Apple products. The company says it has substantial evidence that OpenAI employees used their former Apple credentials to access company networks and copy confidential files.
The lawsuit further alleges that OpenAI misled Apple's third-party manufacturing partners into revealing details of production techniques by suggesting it had Apple's approval. OpenAI is also accused of gathering information about power systems, batteries, and other components directly from Apple's supply chain partners. Apple said it brought these concerns to OpenAI in February but received no response.
The key figures named in the complaint
The primary defendants are Chang Liu and Tang Tan. Liu spent eight years as a senior electrical engineer at Apple before joining OpenAI in January. Tan helped design the iPod, iPhone, and Apple Watch during his tenure at Apple.
According to the complaint, Liu and Tan led a pattern of hiring former Apple employees and advising them on how to extract files and devices while avoiding security measures. Liu reportedly shared messages with a former colleague celebrating the exploit. Tan left Apple in 2024 to co-found a hardware startup called io with longtime Apple design veteran Jony Ive. OpenAI later acquired io, which brought Tan into OpenAI's hardware division.
OpenAI's hardware plans and the legal stakes
The lawsuit arrives as OpenAI works on a new hardware platform for its generative AI technology. Previous reports describe a screenless device that continuously records visual and audio data and responds based on context. Sam Altman has said the device is not intended to replace smartphones. OpenAI is also reportedly developing a smartphone optimized for AI applications, with a possible release around 2028.
The legal action follows a partnership between Apple and OpenAI that appears to have deteriorated. Apple integrated ChatGPT into Siri, but the collaboration fell short of OpenAI's expectations. Bloomberg reported in May that OpenAI was preparing its own legal action against Apple as the relationship soured. Apple's lawsuit states that the current complaint does not involve the ChatGPT-Siri collaboration.
If Apple prevails, OpenAI could be required to abandon or significantly redesign hardware products that incorporate the alleged trade secrets. A win for OpenAI would allow the hardware work to continue without restriction and could prompt public debate about the norms of hiring specialized talent across competing firms.
Why this matters for IT and development professionals
Trade secret cases involving AI hardware set precedents that directly affect engineers and developers who move between companies. The outcome may clarify what constitutes protectable trade secrets versus general professional expertise - a distinction that shapes non-compete enforcement, hiring practices, and the legal risk of working on similar problems at a new employer. Discovery filings in this case could also reveal technical details about hardware architectures at both companies, making the docket worth watching for anyone building in the AI hardware space.
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