Apple has initiated legal action against OpenAI in the U.S. District Court for the Northern District of California, alleging a coordinated effort to misappropriate confidential trade secrets through former Apple employees now working at the AI firm. The complaint, unsealed on Friday, targets senior OpenAI leaders, including Chief Hardware Officer Tang Tan, who previously served as Apple’s vice president of product design for iPhone and Apple Watch over a 24-year tenure.
The lawsuit details a pattern of misconduct that Apple claims was encouraged by OpenAI’s leadership. Tang Tan is accused of using Apple’s confidential project code names during recruitment, instructing candidates to bring Apple hardware components to interviews, and coaching departing employees on bypassing Apple’s security protocols. Additionally, Chang Liu, a former senior systems electrical engineer at Apple, allegedly retained an Apple-issued laptop after joining OpenAI in 2026 and used it to download confidential documents covering unannounced features and technical specifications.
The case emerges as OpenAI reportedly develops its first hardware product—potentially an AI-driven smartphone—which would directly compete with Apple’s iPhone. Apple contends that OpenAI has already utilized stolen trade secrets in its hardware development, citing a proprietary metal finishing technique that OpenAI misrepresented as having Apple’s permission to a partner. The filing also references OpenAI’s $6.5 billion acquisition of Jony Ive’s device startup, io, though Ive himself is not named.
Apple is seeking an injunction to bar OpenAI from using or disclosing its trade secrets, the return of all confidential materials, and preservation of evidence. The company stated it had sent a letter to OpenAI in February outlining its concerns but received no response. The complaint describes the alleged theft as “the tip of the iceberg,” noting limited visibility into OpenAI’s internal practices. As the legal process unfolds, this lawsuit could set significant precedents for intellectual property protection amid intense competition in AI and hardware innovation.
