Apple sues OpenAI for alleged theft of trade secrets by former employees

Apple has initiated legal action against OpenAI in a high-stakes Silicon Valley showdown, filing a lawsuit in the US District Court for the Northern District of California on Friday. The complaint alleges that the ChatGPT maker orchestrated a systematic campaign to misappropriate trade secrets, specifically those related to hardware engineering, manufacturing techniques, and supply chain strategies, to bolster its own nascent consumer device division.

The litigation marks a profound shift in the relationship between the two entities, which were once heralded as strategic collaborators. While the companies partnered in 2024 to integrate ChatGPT into Siri and the broader Apple Intelligence ecosystem, tensions have escalated as OpenAI pivoted toward hardware, culminating in the 2025 acquisition of io Products, a startup founded by former Apple design chief Jony Ive. According to court filings, more than 400 former Apple employees have migrated to OpenAI, a movement Apple characterizes as a coordinated effort to harvest its intellectual property.

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Allegations of Systematic Misconduct

The lawsuit explicitly names two former Apple engineers: Tang Tan, who served as a vice president of product design at Apple for 24 years, and Chang Liu, who worked as a senior system electrical engineer for 8 years. Apple alleges that Tan, now OpenAI’s Chief Hardware Officer, methodically exploited his position to secure proprietary data. The filing claims that Tan encouraged interviewees still employed by Apple to bring sensitive materials, such as "actual parts" and CAD/design artifacts to interviews for show and tell sessions.

Further accusations are leveled against Liu, who Apple claims failed to return his company-issued laptop. According to the complaint, Liu exploited an authentication bug to re-access Apple’s internal network, downloading dozens of confidential files. Apple further claims Liu advised a colleague on how to handle her departure to avoid detection by security teams, including the use of encrypted messaging services to obscure their communications.

Regarding the company's broader operational strategy, Apple stated:

"OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."

Apple, via court filing

Corporate Responses and The Path Forward

Apple contends that it attempted to address these grievances privately in February, reaching out to OpenAI to express concern regarding the potential misuse of its technologies. The company alleges that OpenAI failed to provide any response. In contrast, OpenAI has maintained a position of denial. A spokesperson for the startup, Drew Pusateri, stated:

"We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."

Drew Pusateri, Spokesperson, via The Verge

The lawsuit seeks both monetary damages and a preliminary injunction that would force OpenAI to preserve evidence, return stolen data, and cease the use of any misappropriated technology. This legal challenge arrives at a sensitive juncture for OpenAI, as the firm is reportedly preparing for an initial public offering.

What to watch next:

• Legal Discovery: The court-mandated preservation of evidence will likely expose internal communications between former Apple staff and OpenAI leadership.
• Siri Integration: With Apple shifting its AI focus toward Google’s Gemini for recent Siri updates, the future of the ChatGPT-Siri partnership remains uncertain.
• IPO Timeline: Investors will be watching to see if the legal cloud over the company's hardware ambitions impacts its valuation or the timing of its public market debut.