Apple Sues OpenAI, Former Employees Over Alleged Trade Secret Theft

Apple has filed a lawsuit against OpenAI and two former Apple employees, accusing them of misappropriating confidential company information and trade secrets tied to its hardware development efforts.

The lawsuit, filed Friday in the U.S. District Court for the Northern District of California, names former Apple employees Chang Liu and Tang Yew Tan as defendants. Both individuals left Apple to join OpenAI, with Tang now serving as the AI company's chief hardware officer.

According to the complaint, Apple alleges that Tang is using proprietary Apple trade secrets in his current role at OpenAI. The company also claims that Chang Liu copied dozens of confidential hardware-related files after accepting a position at OpenAI, taking sensitive information that Apple says is protected intellectual property.

Apple further alleges that OpenAI encouraged job candidates to bring Apple prototypes, design materials, and other confidential artifacts to interviews. The iPhone maker claims OpenAI also questioned suppliers about Apple's manufacturing methods, components, and production processes in ways that suggested access to insider knowledge.

In addition, the lawsuit accuses OpenAI of persuading one of Apple's manufacturing partners to apply Apple's proprietary metal-finishing techniques during OpenAI's hardware development. Apple argues that such work violated contractual restrictions governing the supplier's relationship with the company.

The legal complaint represents a significant escalation in the growing rivalry between Apple and OpenAI as competition intensifies in artificial intelligence and AI-powered hardware. Apple is seeking to protect what it describes as valuable trade secrets and confidential engineering knowledge that helped develop its products.

The case is expected to draw close attention across the technology industry, as it raises broader questions about employee mobility, intellectual property protection, and competitive practices in the rapidly evolving AI sector. The outcome could have significant implications for how technology companies safeguard proprietary information while competing for top engineering talent.