SAN FRANCISCO (Realist English). On July 10, Apple filed a lawsuit in the US District Court for the Northern District of California against OpenAI, two former employees and io Products, accusing them of a “coordinated pattern of institutional‑level wrongful conduct” involving the theft of trade secrets.
The lawsuit alleges that OpenAI systematically poached Apple employees and used their access to confidential information to develop its own AI devices.
“This case is about how former Apple employees stole Apple’s trade secrets for the benefit of OpenAI. Apple is filing this lawsuit to put an end to it,” the company said in a statement.
Key Defendants
The lawsuit names two former Apple executives who joined OpenAI:
- Tang Yew Tan — former Apple Vice President of Product Design, who oversaw the development of the iPhone, Apple Watch and iPod. He now serves as Chief Hardware Officer at OpenAI. He spent 24 years at Apple.
- Chang Liu — former lead electrical engineer, entrusted with Apple’s most sensitive developments. He left the company in January 2026 to join OpenAI.
The lawsuit also names io Products — a design studio founded by former Apple chief designer Jony Ive. OpenAI acquired it in 2025 for $6.5 billion. Ive himself is not listed as a defendant.
Specific Allegations Against OpenAI
Apple claims that after leaving the company, the former employees continued to gain access to confidential information:
- Chang Liu did not return his work laptop and then exploited an authentication vulnerability to access Apple’s internal network, from which he downloaded “dozens of confidential hardware‑related files, including detailed information about unreleased products, engineering presentations, technical specifications and project data.”
- Tang Yew Tan instructed candidates interviewing at OpenAI — while still working at Apple — to bring “real details” of Apple products for “demonstration purposes.” According to the lawsuit, he also emailed himself information about Apple’s suppliers and internal industry reviews.
- OpenAI “actively instructed” departing employees on how to circumvent the standard two‑week resignation procedure so they could continue to access Apple’s confidential information.
- OpenAI employees contacted Apple’s manufacturing partners, including a request to demonstrate a metal finishing technology developed by Apple.
The lawsuit states that more than 400 former Apple employees now work at OpenAI.
From Partnership to Lawsuit
The lawsuit marks a rupture in relations between two companies that announced a partnership in 2024 to integrate ChatGPT into Apple products. However, in May 2026, Apple shifted its AI features to Google Gemini models, increasing tensions.
In 2025, OpenAI acquired io Products — the company founded by Jony Ive — signalling OpenAI’s intention to enter the consumer hardware market. OpenAI’s first device — an AI‑powered keyboard — is expected to be unveiled this month, and the company is preparing for an IPO.
Reaction from Both Sides
Apple stated that it had attempted to resolve the dispute out of court as early as February, sending OpenAI a letter outlining its claims, but received no response.
The company is seeking an immediate injunction against the use of its trade secrets, the return of all intellectual property, monetary damages and the redesign of OpenAI’s devices so that they do not contain Apple’s technology.
OpenAI said it is reviewing the lawsuit. Spokesperson Drew Pusateri said: “We are not interested in the trade secrets of other companies. We remain focused on building innovative technologies that empower people around the world.”
