Apple Sues OpenAI, Tang Tan, Chang Liu Over Trade Secret Theft

Apple sued OpenAI in a lawsuit filed in the Northern District of California, accusing the AI company and its hardware chief of engaging in a coordinated campaign to steal information about upcoming products.

In the filing, Apple named Tang Tan, OpenAI’s chief hardware officer, and said that “At every level, from members of its technical staff to its chief hardware officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information,” while also arguing that OpenAI’s hardware business “now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”

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Apple also accused OpenAI of encouraging Apple employees to share information, components, drawings and other materials related to upcoming products, and it said Tan encouraged employees to provide information about upcoming products in job interviews.

The suit further names Chang Liu, alleging that “Over several weeks, while developing hardware for OpenAI, Mr. Liu surreptitiously accessed and downloaded dozens of Apple’s confidential hardware-related files,” including information about unreleased products and proprietary project data.

Apple is demanding that OpenAI cease its practices and destroy any proprietary materials, and it is seeking a jury trial while also asking for an order to redesign upcoming products so they don’t include any of its technology.

Apple’s allegations describe a recruiting process in which Tan allegedly told prospective hires to arrive at OpenAI interviews carrying “actual parts,” which the suit characterizes as “show and tell” sessions.

Quartz reported that the civil suit targets Tang Tan and Chang Liu, both identified as former Apple employees, and it said the complaint alleges Tan forwarded Apple supplier information to his personal email.

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The Hill said Apple’s attorneys argue OpenAI’s hardware business “now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets,” and it described the lawsuit as accusing OpenAI and two former employees of stealing confidential information through job interviews.

CNN added that the lawsuit was filed in the District Court of Northern California and that it names OpenAI, Chang Liu, and Tang Tan, while also including io Products, the company founded by Jony Ive.

Apple also said it contacted OpenAI to raise its concerns when the investigation was in its early stages but “never received a response,” according to the complaint as summarized by CNN.

The lawsuit comes as Apple and OpenAI’s relationship has shifted from a 2024 partnership to integrate ChatGPT into Apple products toward a breakdown, with Apple’s suit framed as a threat to its intellectual property and unreleased technologies.

CNN reported that the device is expected to be unveiled later this year, but the lawsuit “could throw a wrench into those plans,” and it also said the case could complicate OpenAI’s plans to go public soon in a massive, hotly anticipated IPO.

CNBC said Apple is seeking damages, injunctions, and an order to force OpenAI to stop using its trade secrets, while also alleging that Tan directed job candidates still working for Apple to bring “actual parts” from Apple to interviews for “show and tell” sessions.

The Hill described the lawsuit as filed in a California federal court and said Apple’s legal team wrote that “Apple does not bring this action lightly,” while also arguing it cannot tolerate the theft of its trade secrets.

Meanwhile, the Los Angeles Times reported that OpenAI has supplied vital technology to the Apple Intelligence platform and Siri digital assistant, and it said Apple is working on devices as varied as smart glasses, pendants and camera-equipped AirPods as both companies race to develop next-generation AI devices.