Apple challenges OpenAI’s hardware push in trade

Apple filed a federal lawsuit Friday accusing OpenAI, its hardware subsidiary io Products, and two former Apple employees of using stolen trade secrets to accelerate the development of OpenAI’s planned consumer devices. The case places the companies in direct legal conflict while they remain partners in integrating ChatGPT into Apple products. The 41-page complaint, filed in the US District Court for the Northern District of California, names OpenAI chief hardware officer Tang Yew Tan and engineer Chang Liu. Apple alleges that the defendants engaged in a “coordinated pattern of misconduct at an institutional level” involving confidential product designs, manufacturing methods, and supplier information. Apple also claims OpenAI used former employees, interviews, and suppliers to obtain protected hardware information. The claims have not been tested in court. Liu worked at Apple for eight years before joining OpenAI in January 2026. Apple claims he failed to return a company laptop and later discovered that an authentication flaw still allowed him to access Apple’s network storage. According to the complaint, Liu wrote to a former colleague: “LOL, I found out I can access the [network storage], so funny.” He then allegedly downloaded dozens of files, including technical presentations, engineering data and information about unreleased products. One collection exceeded 1,000 pages. The second employee, Tan, spent 24 years at Apple. He most recently served as vice president of product design for the iPhone and Apple Watch. Apple alleges that Tan used internal project names when interviewing Apple employees. It also claims that candidates were asked to bring “Actual parts,” prototypes, and design material to OpenAI interviews for “show and tell” sessions. The requested materials allegedly included batteries, main logic boards, shields and systems-in-package. Apple brought four claims under the federal Defend Trade Secrets Act and two breach-of-contract claims. Under 18 USC §1836(b)(1), a trade-secret owner may file a civil action when the secret relates to a product or service used, or intended for use, in interstate or foreign commerce. The law permits injunctions, damages, reasonable royalties and, for willful and malicious conduct, exemplary damages. The dispute complicates an important commercial relationship. Apple integrated ChatGPT into Siri and Apple Intelligence after announcing a partnership with OpenAI in 2024. Apple states that the integration agreement is separate from the present case and is not being challenged. The lawsuit follows earlier technology-sector disputes involving departing employees. Apple sued chip startup Rivos in 2022 over alleged theft of chip-design information before reaching a settlement in 2024. Waymo also sued Uber after alleging that a former engineer took confidential self-driving technology; that case settled in 2018. Apple argues that its product designs, testing methods, component technologies, manufacturing processes and supplier relationships are protected trade secrets developed through decades of work and hundreds of billions of dollars in investment. Apple is seeking preliminary and permanent injunctions under Section 1836, preservation of electronic evidence, return of its information, damages, and a jury trial. The defendants must now respond to the complaint. The court will ultimately decide whether Apple has identified legally protected trade secrets and whether they were acquired or used through improper means.