Apple Sues OpenAI Over Alleged Theft of Trade Secrets in Hiring Scheme

Apple has filed a lawsuit against OpenAI in a federal court in California, accusing the AI company of orchestrating a systematic operation to recruit employees in order to obtain confidential information about unreleased products and technologies. The complaint alleges that senior OpenAI executives encouraged former Apple employees to bypass security protocols and share internal documents. Central to the allegations is Tang Tan, a former Apple hardware executive responsible for flagship products like the iPhone and Apple Watch, who joined OpenAI as chief hardware officer. Apple claims Tan used secret project code names during recruitment, requested candidates bring Apple hardware components to interviews, and urged former employees to disclose details about upcoming products.

The lawsuit also targets OpenAI engineer Chang Liu, who allegedly failed to return a company laptop containing confidential Apple documents after leaving the company. Apple accuses Liu of downloading sensitive materials, sharing internal information with other OpenAI job candidates, and coaching them for interviews based on his knowledge of Apple’s proprietary data. This legal action comes amid industry speculation that OpenAI is developing its first hardware product, potentially competing directly with the iPhone. The concern intensified after OpenAI acquired the design firm io, founded by former Apple designer Jony Ive, in a $6.5 billion deal last year.

Apple’s complaint states that its investigation revealed OpenAI used stolen trade secrets during product development, including a proprietary metal finishing technique. Apple also claims it formally warned OpenAI in February about these suspicions but received no response. The company is now seeking a court order to prohibit OpenAI from using any confidential information, demand the return of all proprietary materials, and preserve all related evidence. Apple’s filing describes the alleged misconduct as widespread and endorsed by OpenAI’s management, warning that OpenAI’s emerging hardware business is built on illegally obtained trade secrets.