Apple sues OpenAI over alleged theft of hardware trade secrets

Apple sued OpenAI on Friday, asking a court to block the AI company from using Apple confidential information that it says was taken by former employees. The complaint puts a hard legal edge on the race to build AI hardware, where OpenAI has hired heavily from Apple and has not disclosed the scope, timeline or technical shape of its device plans.

Apple’s case centers in part on Chang Liu, an engineer who spent eight years at Apple before joining OpenAI in January 2026. According to Apple’s complaint, Liu discovered an authentication flaw on February 9 that still let him reach Apple shared network folders from an Apple-issued laptop he had not returned after leaving the company.

Apple alleges Liu did not report the flaw and instead downloaded dozens of confidential hardware files over several weeks while working on hardware at OpenAI. The company said the files included information about unreleased products, engineering presentations, technical specifications and proprietary project data. Apple specifically pointed to a presentation about its circuit boards, which it said would be valuable to a hardware developer.

The complaint says some of the files were labeled confidential. Apple also cited messages it says Liu left on the Apple laptop, including one to Yu-Ting “Alyssa” Peng, then an Apple employee, in which Liu said he could still access Apple network storage.

Apple said it fixed the authentication bug after finding the messages. In a footnote cited in the complaint, the company said server logs showed that a small number of other affected users did not appear to have accessed or taken confidential information in the same way. Apple said its investigation is continuing.

Apple ties the claim to OpenAI’s hardware recruiting

Apple is not limiting the lawsuit to Liu. The company alleges OpenAI has built a broader hardware recruiting effort around former Apple employees, saying OpenAI has hired more than 400 people from Apple. Apple claims discovery will show a pattern of trade-secret theft by former Apple staff now working at OpenAI.

The complaint also names Tang Yew Tan, Apple’s former vice president of product design for iPhone, as a central figure in OpenAI’s hardware push. Apple said Tan spent 24 years at Apple, later joined Jony Ive’s io Products and became OpenAI’s chief hardware officer in 2025.

Apple alleges Tan used knowledge of internal project code names to draw out information about unreleased products during interviews. The complaint also claims he used an Apple internal document to build a checklist for departing employees to avoid Apple security controls when taking information.

Apple further alleges Tan asked Apple employees to bring computer parts to “show and tell” sessions that would reveal proprietary technology beyond what could be learned from reverse engineering. The Wall Street Journal reported that engineers commonly bring parts to interviews, and that it is possible only non-proprietary information was discussed. The evidence Apple will use to support those claims remains to be tested in court.

OpenAI denies relying on Apple information

OpenAI has not laid out a detailed public rebuttal. A company spokesperson told Ars Technica that OpenAI is still reviewing Apple’s complaint and said, “We have no interest in other companies’ trade secrets.” The spokesperson said OpenAI remains focused on building technology, but did not provide details about its hardware program or hiring practices.

OpenAI CEO Sam Altman also responded on X to a user who suggested OpenAI feared the lawsuit. Altman wrote that he was “not afraid of Apple” and had “tremendous respect” for the company.

Apple is seeking injunctions to prevent OpenAI from benefiting from information Apple says was misappropriated. The complaint does not put a dollar figure on damages. For OpenAI, the case lands as its hardware ambitions move from recruiting and partnerships into a more direct threat to the device companies whose engineers it has been hiring.

This story draws on original reporting from Ars Technica.