Friday, July 24, 2026

OpenAI Faces Lawsuit from Apple for Alleged AI Hardware Trade Secret Theft

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Apple has initiated legal action against OpenAI, filing a lawsuit in a U.S. federal court that accuses the AI company of improperly using Apple’s confidential trade secrets. The allegations focus on sensitive information related to hardware development, manufacturing processes, and supply chain operations, which Apple claims have been exploited by OpenAI.

The tech giant’s complaint centers around former employees who transitioned to OpenAI, allegedly taking with them proprietary knowledge that could unfairly benefit OpenAI as it reportedly works on consumer AI hardware products. Apple accuses these individuals of sharing confidential information, engaging with Apple suppliers, and seeking sensitive details during recruitment processes to gain an edge over competitors.

The lawsuit specifically names several former Apple executives and engineers, including Chang Liu, who allegedly did not return a company-issued laptop upon his departure. Another key figure mentioned is Tang Yew Tan, a former senior Apple executive who became OpenAI’s Chief Hardware Officer. Apple claims Tan engaged in discussions with OpenAI affiliates and Apple suppliers prior to leaving the company, which is part of a broader pattern of misconduct.

Apple contends that OpenAI and its affiliates have systematically targeted the company’s confidential technology and expertise in manufacturing and product development to expedite their entry into the consumer AI hardware sector. With over 400 former Apple employees now reportedly working at OpenAI, Apple insists it had previously addressed these concerns with the AI firm, but did not receive a response.

In response to the alleged misappropriation of its trade secrets, Apple is seeking court orders to halt any further use of its confidential information. The company is also demanding financial compensation for what it describes as deliberate and harmful breaches of its business information. So far, OpenAI has not issued a public statement regarding these allegations.

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