Apple sues OpenAI for allegedly stealing trade secrets through former employees

You can hire our people, but you can't weaponize our secrets
Apple's core argument in the lawsuit: employment mobility is acceptable, but systematic theft of confidential information is not.

In the quiet corridors where innovation and ambition intersect, Apple has filed a federal lawsuit in California against OpenAI and two of its own former executives, alleging that confidential knowledge of hardware design, manufacturing, and supplier relationships was carried out the door and handed to a rival. The case arrives at a peculiar moment — the two companies remain publicly intertwined through a ChatGPT integration built into Siri, even as they now face each other across a courtroom. At its heart, this dispute asks an enduring question of the technology age: where does a person's expertise end and a company's secrets begin, and who bears the cost when that line is crossed?

  • Apple alleges that former senior engineer Chang Liu exploited a security vulnerability to download dozens of confidential hardware files before departing for OpenAI, and that former VP Tang Yew Tan systematically forwarded himself supplier intelligence on his way out.
  • The alleged scheme extended to job interviews, where OpenAI candidates were reportedly encouraged to bring physical Apple components to 'show and tell' sessions — a practice that surprised at least one participant who questioned whether removing parts was even permitted.
  • Apple's February letter to OpenAI warning that confidential information was flowing between the companies went entirely unanswered, a silence that appears to have accelerated the decision to litigate.
  • With over 400 former Apple employees now at OpenAI and the AI company's $6.5 billion acquisition of Jony Ive's hardware startup signaling serious ambitions in physical devices, the competitive stakes underlying this lawsuit are unmistakably high.
  • Despite the legal confrontation, the ChatGPT-Siri partnership remains publicly active, leaving both companies in the unusual position of being simultaneously collaborators and adversaries.

Apple filed a federal lawsuit in California on Friday against OpenAI and two former employees, accusing them of orchestrating a coordinated effort to steal confidential hardware designs, manufacturing processes, and supplier relationships as OpenAI races to build its own AI device.

The complaint names Chang Liu, a former senior systems electrical engineer, and Tang Yew Tan, once Apple's vice president of product design for the iPhone and Apple Watch. Apple alleges Liu exploited an authentication vulnerability to download dozens of confidential files from Apple's internal network without returning his company laptop. Tan, the filing claims, methodically forwarded himself supplier data and internal industry assessments before his departure. Beyond individual downloads, Apple alleges that OpenAI encouraged job candidates to bring physical Apple components to interviews for informal demonstrations — a practice that reportedly surprised at least one candidate who questioned whether removing parts was allowed.

The lawsuit also claims OpenAI employees sought proprietary information directly from Apple's suppliers. In one case, a supplier unknowingly used a secret metal finishing technique for OpenAI, believing the AI company had Apple's authorization. Apple frames these incidents as part of a deliberate push to accelerate OpenAI's hardware ambitions — ambitions made plain by the company's $6.5 billion acquisition of designer Jony Ive's startup last year.

Apple acknowledges that some transfer of general knowledge is unavoidable when employees change jobs, but argues that OpenAI has crossed a line by actively weaponizing that knowledge. The company had raised concerns in a February letter to OpenAI, which went unanswered. By May, OpenAI was reportedly weighing its own legal options against Apple over a separate contract dispute, though no suit had been filed.

The confrontation unfolds against an unlikely backdrop: the two companies remain publicly partnered, with ChatGPT integrated into Siri and accessible directly through iOS. What the California courts ultimately decide may set a defining precedent for how the technology industry navigates the movement of talent and secrets in the accelerating race to shape AI hardware.

Apple filed suit against OpenAI in federal court in California on Friday, accusing the artificial intelligence company and two of its former employees of orchestrating a scheme to pilfer confidential information about hardware design, manufacturing, and supply chains. The move marks a sharp fracture in what had appeared to be a working partnership between the iPhone maker and the ChatGPT creator, even as the two companies maintain a public integration that lets Apple users access OpenAI's chatbot through Siri.

The lawsuit names Chang Liu, who previously held the title of senior systems electrical engineer at Apple, and Tang Yew Tan, formerly Apple's vice president of product design for the iPhone and Apple Watch. Both men are now at OpenAI. The complaint alleges Liu never returned a company laptop and exploited an authentication vulnerability to download dozens of Apple's confidential hardware files from the company's internal network. Tan, according to the filing, methodically forwarded himself information about Apple's supplier relationships and internal industry assessments before leaving the company.

The alleged misconduct extends beyond individual downloads. Apple claims Tan encouraged job candidates interviewing at OpenAI to bring physical components from Apple offices to the meetings for what the company calls "show and tell" sessions. In one instance cited in the filing, an OpenAI candidate expressed surprise at being allowed to remove parts from Apple's premises, suggesting the practice was not standard. More broadly, Apple notes that over 400 former employees now work at OpenAI, and while the company acknowledges that some knowledge of its confidential information is inevitable when people change jobs, it argues that OpenAI has no right to weaponize that knowledge for competitive advantage.

Apple also alleges that OpenAI employees sought proprietary information directly from Apple's suppliers. In one case, a supplier used a secret metal finishing technique for OpenAI, believing the AI company had Apple's permission to do so. The lawsuit suggests this was part of a coordinated effort to accelerate OpenAI's push into hardware. OpenAI acquired io Products, the startup founded by renowned designer Jony Ive, for $6.5 billion last year, signaling serious intent to move beyond software into physical devices. The company has described its hardware project as an attempt to reimagine how people interact with AI beyond traditional screens and interfaces, echoing efforts by Amazon and Google to introduce voice-activated speakers into homes.

Tensions between the two companies have been building as competition for AI talent and proprietary technology has intensified. In February, Apple wrote to OpenAI expressing concern that its confidential information was flowing to the AI company and requesting a discussion. The letter went unanswered. By May, according to reporting from Reuters, OpenAI was itself exploring legal options against Apple, including potential breach-of-contract claims, though the company had not yet committed to filing a full lawsuit.

The partnership between the two companies remains publicly intact. In 2024, Apple announced the integration of ChatGPT into its ecosystem, allowing Siri to surface OpenAI's responses and enabling iPhone users to subscribe to ChatGPT directly from iOS settings. Last month, Apple rolled out a long-delayed overhaul of Siri, a project the company had promised two years earlier. Neither OpenAI nor the two named defendants responded to requests for comment on the lawsuit. What unfolds in the California courtroom will likely shape how tech companies manage the movement of talent and knowledge as the race to build AI hardware accelerates.

That OpenAI now employs people who were once entrusted with Apple's trade secrets does not entitle OpenAI to use that information to jumpstart its hardware efforts.
— Apple's complaint filing
A Conversa do Hearth Outra perspectiva sobre a história
Inventor

Why does it matter that Apple is suing now, rather than just accepting that people move between companies and take knowledge with them?

Model

Because there's a difference between what someone remembers and what someone steals. Apple is alleging systematic extraction—downloading files, forwarding supplier lists, using authentication bugs. That's not incidental knowledge transfer. That's preparation.

Inventor

But 400 former Apple employees work at OpenAI. How does Apple draw the line between acceptable and unacceptable?

Model

That's the real tension. Apple's argument is: you can hire our people, but you can't let them weaponize our secrets to build competing hardware. The question is whether OpenAI deliberately orchestrated the theft or just benefited from it.

Inventor

What does OpenAI actually want to build?

Model

They haven't said exactly. But they bought Jony Ive's company for $6.5 billion and they're talking about new ways to interact with AI. That suggests a device—probably something physical, probably something that talks back. Apple sees that ambition and sees its own confidential designs in the blueprint.

Inventor

Why would a supplier use Apple's secret technique for OpenAI?

Model

Because OpenAI told them Apple had approved it. That's the insidious part. It's not just that the information moved. It's that it was used under false pretenses, making Apple's own suppliers unwitting accomplices.

Inventor

What happens if Apple wins?

Model

Damages, probably. Injunctions preventing OpenAI from using the information. But the real question is whether it changes how tech companies poach talent. Right now, there's no clear answer to what you can take in your head versus what you can't.

Inventor

And if OpenAI wins?

Model

Then the precedent becomes: if you hire enough people from a competitor, you can build whatever you want. That would reshape how Silicon Valley operates.

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