Apple sues OpenAI for trade secret theft by ex-employees

Apple filed suit Friday against OpenAI and former employees Tang Tan and Chang Liu, alleging "pervasive" trade secret theft to advance OpenAI's hardware ambitions.news.bloomberglaw+1
The case escalates tensions between the companies, which partnered on Siri's ChatGPT integration in 2024 but have since clashed over the deal's terms.9to5mac
OpenAI's hardware unit, led by ex-Apple talent including Jony Ive, is developing an AI device not expected until 2027 and already faces separate legal challenges.macrumors+1

Apple filed a lawsuit on Friday against OpenAI and two former Apple employees, accusing them of stealing the company's trade secrets to advance OpenAI's hardware ambitions in what marks a dramatic escalation between the two tech companies whose relationship has soured over the past year.

The Allegations

The lawsuit, filed in U.S. District Court, names former Apple employees Chang Liu and Tang Tan as defendants alongside OpenAI, according to Bloomberg Law. Apple accuses OpenAI and its hardware chief of engaging in a "coordinated" scheme to misappropriate confidential information. Tang Tan previously served as vice president of product design at Apple, where he led work on the iPhone and Apple Watch before co-founding OpenAI's hardware unit alongside former Apple industrial design head Evans Hankey.news.bloomberglaw+2

Apple claims former employees took confidential information to OpenAI to advance the AI company's device efforts, according to The Wall Street Journal. The lawsuit alleges what Apple characterizes as "pervasive" theft of trade secrets.washingtonexaminer+1

A Relationship Unraveling

The case arrives amid a broader deterioration in the Apple-OpenAI relationship. The two companies struck a deal in 2024 to integrate ChatGPT with Siri as part of iOS 18, but by May 2026, OpenAI was itself reportedly exploring legal action against Apple over disappointment with how the partnership had played out. Bloomberg reported that OpenAI had enlisted outside counsel to work through its options, which could include a breach-of-contract notice.techcrunch+2

Meanwhile, Apple has watched a parade of senior hardware executives depart for OpenAI. As recently as late June, Paul Meade, a vice president of hardware engineering in Apple's Vision Products Group, left for OpenAI's hardware unit.appleinsider

Stakes for the AI Hardware Race

OpenAI's hardware division, staffed heavily by former Apple talent including designer Jony Ive, has been developing an AI-powered consumer device expected no earlier than 2027. The project has already faced legal headwinds, including a preliminary injunction in April barring OpenAI from using the "io" name for its hardware following a trademark dispute with startup iyO.macrumors+1

The trade secrets suit raises the stakes considerably, potentially threatening the foundation of OpenAI's hardware development if Apple can demonstrate that proprietary information informed the design of OpenAI's devices. Apple has demonstrated a willingness to aggressively litigate trade secret cases—it settled a similar suit against a former Vision Pro engineer earlier this year after he admitted to downloading confidential documents before departing for Snap .appleinsider+1

Sources (76)