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Apple Sues OpenAI Over Alleged Trade Secret Theft in Hardware Development

🔄 Updated 5d ago — new reporting from 9to5Mac
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Key points

  • Apple sues OpenAI for trade secret theft.
  • OpenAI allegedly used Apple secrets for hardware.
  • Former employees Chang Liu and Tang Tan named.
  • Legal action filed in Northern California court.
  • OpenAI denies wrongdoing, claims no merit.
  • OpenAI acquired Jony Ive's startup, IO Products, for $6.4 billion.
  • Apple's updated Siri will use Google's Gemini AI models, not ChatGPT.
  • Tang Tan was VP of product design for iPhone and Apple Watch at Apple for 24 years.
  • Tang Tan allegedly used Apple's project code names during recruiting.
  • Tang Tan allegedly asked job candidates to bring Apple hardware components to interviews.
  • Tang Tan allegedly coached departing Apple employees on evading security.
  • Tang Tan allegedly asked for details about Apple's unannounced products.
  • Chang Liu was a senior system electrical engineer at Apple.
  • Chang Liu allegedly accessed and downloaded dozens of Apple's confidential hardware files.
  • OpenAI plans to announce its first product in 2026 and release it in 2027.
  • Apple's lawsuit is 41 pages long.
  • Chang Liu allegedly exploited a 'rare, previously unknown authentication bug' to access files.
  • The bug allowed access to Apple's shared network folders.
  • Apple has since fixed the bug.
  • Apple sent legal preservation letters to about 40 former employees now at OpenAI.
  • OpenAI's Director of Strategic Communications, Drew Pusateri, commented on the lawsuit.
  • OpenAI stated it is 'not aware of any evidence that this complaint has merit'.
  • An email mistake by Apple's outside counsel derailed pre-lawsuit talks.
  • Apple's lawsuit alleges a 'pattern of theft' by former employees now at OpenAI.
  • Apple's lawsuit claims misconduct was 'normalized and exemplified by leadership' at OpenAI.
  • Apple's lawsuit describes OpenAI's hardware business as 'rotten to its core'.
  • OpenAI's Director of Strategic Communications, Drew Pusateri, stated OpenAI has 'no interest in other companies’ trade secrets'.
  • OpenAI stated it believes in 'fair competition and allowing people the freedom to work wherever they choose'.
  • OpenAI's hardware timeline is reportedly unchanged despite the lawsuit.
  • Apple's lawsuit is against OpenAI, IO Products, Chang Liu, and Tang Tan.
  • Apple's lawsuit also names IO Products as complicit in the trade secret theft.
  • Apple alleges OpenAI asked job candidates to bring Apple prototypes and components to interviews.
  • Apple alleges OpenAI asked job candidates to disclose details about unreleased products and manufacturing processes.
  • Apple alleges OpenAI helped approach Apple suppliers using proprietary information.
  • Apple's lawsuit was initially assigned to Magistrate Judge Virginia K. DeMarchi.
  • Apple declined to consent to the magistrate judge overseeing the entire case.
  • Apple's lawsuit has been reassigned to U.S. District Judge Edward Davila.
  • The initial case management conference will be rescheduled due to the judge reassignment.
  • OpenAI is reportedly eyeing an IPO as early as later this year.
  • OpenAI's hardware plans include a mobile smart speaker.
  • Chang Liu left Apple for OpenAI in January 2026.
  • Chang Liu discovered the authentication bug on February 9.
  • Chang Liu allegedly used an Apple-issued work laptop to access files.
  • Apple's outside counsel mistakenly emailed the wrong OpenAI employee.
  • Apple's outside counsel confused interactions with the wrong OpenAI employee.
  • Apple sent legal preservation letters to around 40 former employees now at OpenAI.
  • Apple suspects trade secret theft might extend beyond those named in the initial filing.
  • Apple filed its response to OpenAI's motion to dismiss the lawsuit.
  • OpenAI claims Apple's lawsuit was filed 'without adequate investigation'.
  • OpenAI argues Apple failed to demonstrate ownership of a protectable trade secret.
  • OpenAI argues Apple failed to allege conduct supporting misappropriation.
  • OpenAI argues Apple failed to plausibly allege injury or ongoing harm.
  • OpenAI claims Chang Liu was consulted by former colleagues after leaving Apple.
  • OpenAI claims Tang Tan retained Apple's offboarding document to help new hires.

Apple Files Lawsuit Against OpenAI

Apple has filed a federal lawsuit against OpenAI, accusing the AI company of stealing trade secrets related to hardware development. This lawsuit involves allegations of systematic misconduct by OpenAI's leadership, particularly impacting Apple's confidential product information.

Allegations and Central Figures

The lawsuit accuses OpenAI of leveraging former Apple employees, including Chief Hardware Officer Tang Tan and engineer Chang Liu, to access Apple's confidential data. It alleges that these individuals participated in misconduct involving the misappropriation of sensitive hardware information to aid OpenAI's product development.

OpenAI's Response and Denial

In response to the lawsuit, OpenAI has disputed Apple's claims, stating that they have found no evidence to support the allegations. OpenAI underscores its commitment to fair competition and has expressed its focus on developing innovative technology.

Implications for the Tech Industry

This lawsuit highlights ongoing tensions and competition over intellectual property in the tech sector. With potential impacts on OpenAI's hardware development timeline and IPO plans, it underscores significant stakes and challenges for tech companies operating in competitive fields.

Updates

🕒 2026-08-20 · new reporting from 9to5Mac
  • Apple filed its response to OpenAI's motion to dismiss the lawsuit.
  • OpenAI claims Apple's lawsuit was filed 'without adequate investigation'.
  • OpenAI argues Apple failed to demonstrate ownership of a protectable trade secret.
  • OpenAI argues Apple failed to allege conduct supporting misappropriation.
  • OpenAI argues Apple failed to plausibly allege injury or ongoing harm.
  • OpenAI claims Chang Liu was consulted by former colleagues after leaving Apple.
  • OpenAI claims Tang Tan retained Apple's offboarding document to help new hires.
🕒 2026-07-24 · new reporting from 9to5Mac
  • Apple's lawsuit alleges a 'pattern of theft' by former employees now at OpenAI.
  • Apple's lawsuit claims misconduct was 'normalized and exemplified by leadership' at OpenAI.
  • Apple's lawsuit describes OpenAI's hardware business as 'rotten to its core'.
  • OpenAI's Director of Strategic Communications, Drew Pusateri, stated OpenAI has 'no interest in other companies’ trade secrets'.
  • OpenAI stated it believes in 'fair competition and allowing people the freedom to work wherever they choose'.
  • OpenAI's hardware timeline is reportedly unchanged despite the lawsuit.
  • Apple's lawsuit is against OpenAI, IO Products, Chang Liu, and Tang Tan.
  • Apple's lawsuit also names IO Products as complicit in the trade secret theft.
  • Apple alleges OpenAI asked job candidates to bring Apple prototypes and components to interviews.
  • Apple alleges OpenAI asked job candidates to disclose details about unreleased products and manufacturing processes.
  • Apple alleges OpenAI helped approach Apple suppliers using proprietary information.
  • Apple's lawsuit was initially assigned to Magistrate Judge Virginia K. DeMarchi.
  • Apple declined to consent to the magistrate judge overseeing the entire case.
  • Apple's lawsuit has been reassigned to U.S. District Judge Edward Davila.
  • The initial case management conference will be rescheduled due to the judge reassignment.
  • OpenAI is reportedly eyeing an IPO as early as later this year.
  • OpenAI's hardware plans include a mobile smart speaker.
  • Chang Liu left Apple for OpenAI in January 2026.
  • Chang Liu discovered the authentication bug on February 9.
  • Chang Liu allegedly used an Apple-issued work laptop to access files.
  • Apple's outside counsel mistakenly emailed the wrong OpenAI employee.
  • Apple's outside counsel confused interactions with the wrong OpenAI employee.
  • Apple sent legal preservation letters to around 40 former employees now at OpenAI.
  • Apple suspects trade secret theft might extend beyond those named in the initial filing.
🕒 2026-07-23 · new reporting from The Verge
  • OpenAI acquired Jony Ive's startup, IO Products, for $6.4 billion.
  • Apple's updated Siri will use Google's Gemini AI models, not ChatGPT.
  • Tang Tan was VP of product design for iPhone and Apple Watch at Apple for 24 years.
  • Tang Tan allegedly used Apple's project code names during recruiting.
  • Tang Tan allegedly asked job candidates to bring Apple hardware components to interviews.
  • Tang Tan allegedly coached departing Apple employees on evading security.
  • Tang Tan allegedly asked for details about Apple's unannounced products.
  • Chang Liu was a senior system electrical engineer at Apple.
  • Chang Liu allegedly accessed and downloaded dozens of Apple's confidential hardware files.
  • OpenAI plans to announce its first product in 2026 and release it in 2027.
  • Apple's lawsuit is 41 pages long.
  • Chang Liu allegedly exploited a 'rare, previously unknown authentication bug' to access files.
  • The bug allowed access to Apple's shared network folders.
  • Apple has since fixed the bug.
  • Apple sent legal preservation letters to about 40 former employees now at OpenAI.
  • OpenAI's Director of Strategic Communications, Drew Pusateri, commented on the lawsuit.
  • OpenAI stated it is 'not aware of any evidence that this complaint has merit'.
  • An email mistake by Apple's outside counsel derailed pre-lawsuit talks.

✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →

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How outlets covered it

Apple filed its response to OpenAI's motion to dismiss a lawsuit alleging trade secret misappropriation by two former employees, OpenAI, and io Products. Apple maintains its complaint sufficiently identifies specific trade secrets and refutes OpenAI's arguments regarding its information protection practices.

OpenAI filed a motion to dismiss Apple's trade secrets lawsuit, arguing that Apple's own security and offboarding procedures undermine its claims that the information was legally protected. OpenAI contends that Apple failed to properly secure its systems and revoke access for departing employees, weakening the definition of the alleged trade secrets.

Apple has filed a lawsuit against OpenAI, alleging that up to 13 former employees shared confidential trade secrets, including details of unannounced products and screenshots of internal documents. OpenAI denies the allegations, calling the lawsuit "sad" and suggesting Apple is mistaken, while also publicly releasing communications to support its defense.

OpenAI filed a motion to dismiss Apple's trade secret theft lawsuit, arguing Apple failed to prove tangible trade secrets or improper conduct. OpenAI claims Apple mischaracterized former employee communications and document retention, presenting them as ordinary conduct.

OpenAI has filed a motion to dismiss Apple's trade secret lawsuit, arguing that Apple's allegations of theft are meritless and mischaracterize both employee actions and product development information. OpenAI claims Apple's lawsuit is an attempt to compensate for its own shortcomings in talent retention and AI integration, rather than a legitimate trade secret dispute.

Apple has refuted claims that an iCloud mismanagement issue allowed a former employee to retain access to confidential documents after joining OpenAI. This denial comes amidst Apple's lawsuit against OpenAI, which alleges trade secret theft related to hardware projects.

Apple claims that an internal investigation revealed 11 additional former employees may have shared trade secrets with OpenAI, expanding its ongoing lawsuit against the AI company. Apple is requesting expedited discovery to investigate these new allegations and is seeking a preliminary injunction to prevent OpenAI from developing products based on Apple's technology. This development intensifies the legal dispute between the two companies over intellectual property.

Apple is seeking a preliminary injunction in its trade secrets case against OpenAI, alleging that more former employees than initially thought may have taken confidential data to the AI company. The company is requesting expedited discovery from OpenAI, its foundation, and io, a startup co-founded by former Apple lead designer Jony Ive, to investigate these claims further.

OpenAI has responded to Apple's trade secret lawsuit, calling it "careless, aggressive and oddly personal" and denying claims of stealing information. This marks an escalation in the dispute between the two companies, which began last month when Apple sued OpenAI over alleged theft of hardware designs for AI-focused consumer devices.

Apple has requested a preliminary injunction in its trade secrets lawsuit against OpenAI, citing irreparable harm if OpenAI continues to use or access its confidential information. This action follows an inability to agree on forensic inspections and recovery of Apple's information, despite OpenAI agreeing to cease access and preserve evidence.

OpenAI has publicly refuted Apple's trade secret theft lawsuit, calling it "careless, aggressive and oddly personal" and denying all wrongdoing. The company released chat logs and emails to counter Apple's allegations that OpenAI hired former Apple employees to obtain confidential information.

OpenAI publicly responded to Apple's lawsuit, which alleges the startup stole trade secrets through former Apple employees, calling the lawsuit "careless, aggressive and oddly personal." Apple is seeking a preliminary injunction to prevent OpenAI from accessing or using the alleged stolen information, which OpenAI claims is based on false information and is unnecessary. This legal dispute could impact OpenAI's rumored consumer hardware initiatives.

OpenAI published a blog post titled "Apple is getting this wrong" to counter Apple's lawsuit accusing it of stealing trade secrets. The post includes iMessage and email exchanges to dispute Apple's claims regarding former employees Chang Liu and Tang Tan. This public response aims to influence public opinion rather than serving as a formal legal filing.

OpenAI published a detailed blog post refuting Apple's lawsuit accusing the AI firm of stealing trade secrets related to hardware development. OpenAI characterized Apple's lawsuit as "careless, aggressive, and oddly personal" and provided evidence to counter specific claims, including communication issues and data access allegations. This dispute highlights the increasing legal battles over intellectual property in the rapidly evolving AI and hardware sectors.

A report from The Information indicates that Apple's policy of encouraging employees to use personal iCloud accounts for work has allowed former staff to retain access to confidential company files after their departure. This issue could weaken Apple's arguments in its ongoing trade secret theft lawsuit against former employees, OpenAI, and io Products, where the company must demonstrate reasonable measures to protect confidential information.

Apple's trade secret lawsuit against OpenAI, two former employees, and Jony Ive's io Products has been reassigned to U.S. District Judge Edward Davila. This reassignment occurred after Apple declined to consent to a magistrate judge overseeing the entire case, a standard procedure in the Northern District of California. The change means the initial case management conference will be rescheduled, though other pre-trial deadlines remain.

Apple has filed a trade secrets lawsuit against OpenAI, alleging former Apple employees at OpenAI targeted Apple's trade secrets and downloaded files related to hardware manufacturing. This lawsuit poses a significant challenge for OpenAI, a company that is still burning cash and facing strategic challenges, unlike larger corporations that can more easily absorb such litigation costs.

Apple has filed a trade secrets lawsuit against OpenAI, alleging misconduct aimed at extracting confidential employee information. The suit raises concerns about potential delays to OpenAI’s hardware initiatives, including a mobile smart speaker.

Apple has initiated a trade secrets lawsuit against OpenAI, alleging misconduct involving OpenAI’s hardware chief and over 400 former Apple employees. This legal action may significantly impact OpenAI's upcoming IPO plans, creating uncertainty around its future operations and investor confidence.

Apple has filed a lawsuit against OpenAI, alleging former employees stole trade secrets. As part of the legal process, Apple is sending preservation letters to about 40 ex-employees working at OpenAI, indicating potential wider implications in the case.

Discussions between Apple and OpenAI over trade secret theft collapsed after an attorney's email error caused confusion. This incident highlights the complexities of legal communications in high-stakes negotiations between major tech firms.

OpenAI has countered Apple's trade secret lawsuit, asserting the complaint lacks merit. Apple alleges that OpenAI employees misappropriated confidential information, prompting concerns about competition in hardware development.

OpenAI responded to Apple's lawsuit alleging trade secret theft, claiming no evidence supports the claims. The lawsuit accuses former Apple employees of taking proprietary information to assist OpenAI's consumer-device initiatives.

Apple has filed a lawsuit against OpenAI, accusing the company of stealing trade secrets from former employees. This high-profile legal action could significantly delay OpenAI's ongoing hardware development efforts and reflects the intense competition within the AI sector.

Apple's lawsuit against OpenAI could involve former chief designer Jony Ive due to his role with io Products. If called as a witness, this could complicate Apple's legal strategy and relationship with Ive.

Apple has filed a lawsuit against OpenAI, alleging that former employees took trade secrets before leaving. The case highlights ongoing tensions between major tech companies and raises questions regarding intellectual property protections in the AI sector.

Apple has filed a lawsuit against OpenAI, accusing the company of stealing trade secrets through the actions of a former employee, Chang Liu. Liu allegedly exploited a zero-day vulnerability to access and download confidential files weeks after starting at OpenAI, raising significant concerns over corporate data protection post-employment.

Apple has filed a lawsuit against OpenAI after a former engineer, Chang Liu, allegedly exploited a bug to access and download confidential Apple files. Apple claims Liu, who joined OpenAI after leaving the company, accessed sensitive hardware-related data that could aid in AI product development.

Apple has filed a lawsuit against OpenAI, alleging the company improperly accessed and used its trade secrets through current and former employees. The complaint outlines detailed allegations, suggesting systemic misconduct at OpenAI, which could impact its business operations, especially in light of its purported hardware developments.

Apple has filed a lawsuit against OpenAI, accusing the AI company of stealing confidential documents and spying on its hardware prototypes. The lawsuit centers on alleged recruitment tactics to obtain sensitive information from Apple employees as OpenAI prepares to launch its first AI hardware product in 2025.

OpenAI plans to announce its first product in 2026 and release it in 2027, despite a lawsuit from Apple alleging trade secret theft. This lawsuit adds to OpenAI's legal challenges but has not altered its existing hardware timeline as it prepares to introduce new devices.

OpenAI has responded to a lawsuit from Apple alleging trade secret theft by former employees now at OpenAI. The lawsuit accuses OpenAI of benefiting from Apple’s confidential hardware information through improper practices.

Apple has filed a federal lawsuit against OpenAI, alleging that the company accessed confidential information through the hiring of its former employees. The suit claims this constitutes a systematic pattern of theft, which could significantly impact the relationship between these tech giants.

Apple has filed a lawsuit against OpenAI, alleging the company stole trade secrets while recruiting Apple employees to create new hardware. The suit cites that former employees took confidential Apple information, which Apple claims has impacted the integrity of OpenAI's hardware initiatives.

Apple has filed a lawsuit against OpenAI, alleging theft of trade secrets through recruiting former Apple staff. The suit claims OpenAI, including its hardware chief, exploited Apple employees' confidential information to advance its own hardware business.

Apple has filed a lawsuit against OpenAI and two former employees, alleging theft of trade secrets. The suit implicates OpenAI's hardware business and its acquisition of io Products as part of a coordinated misconduct involving Apple’s confidential information.

Apple has filed a lawsuit against OpenAI, claiming that former Apple engineers stole trade secrets to help advance OpenAI’s hardware initiatives. The suit seeks to protect Apple’s confidential information, indicating a serious legal confrontation over intellectual property rights in the tech industry.

Apple has filed a lawsuit against OpenAI, accusing it of trade secret theft and breach of contract. The suit alleges that OpenAI's leadership, including Chief Hardware Officer Tang Tan, engaged in misconduct involving former Apple employees to gain confidential information.

Apple has initiated a federal lawsuit against OpenAI, accusing the AI firm of stealing trade secrets to develop consumer hardware. This legal action highlights deteriorating relations following OpenAI's prior acquisition of a startup founded by former Apple designer Jony Ive and the shift of Apple's Siri to Google's AI models.