Apple Accuses OpenAI of Systematic Intellectual Property Theft to Build Hardware Rival
The complaint alleges OpenAI recruited hundreds of Apple staff to obtain confidential design files.
Apple has launched a legal offensive against OpenAI, alleging the artificial intelligence leader orchestrated a systematic campaign to siphon proprietary hardware technology through the recruitment of hundreds of former Apple engineers. The complaint, filed in the U.S. District Court for the Northern District of California, marks a definitive end to the brief era of cooperation between the two tech giants.
At the center of the litigation is OpenAI’s aggressive expansion into consumer electronics, a move accelerated by its $6.5 billion acquisition of io Products, the startup led by former Apple design chief Jony Ive. Apple contends that OpenAI’s hardware division has grown to include more than 400 former Apple employees, many of whom allegedly brought sensitive data with them.
The lawsuit names Tang Yew Tan, OpenAI’s chief hardware officer and a 24-year Apple veteran, alongside former senior engineer Chang Liu. Apple alleges that Tan encouraged candidates to provide “CAD/design artifacts” and prototypes during the hiring process, effectively turning job interviews into intelligence-gathering sessions. According to the filing, some candidates were even instructed to bring “actual parts” for “show and tell” demonstrations of Apple’s internal developments.
Legal protections for trade secrets in the United States are governed by strict federal and state statutes designed to prevent the misappropriation of confidential business information that provides a competitive edge. Apple argues that the information allegedly taken—including technical specifications and engineering presentations—constitutes a direct threat to its market position.
The complaint details a specific security breach involving Liu, who Apple claims exploited a previously unknown authentication bug to access shared network folders after his departure in January. Apple alleges Liu downloaded dozens of files related to unreleased products while still in possession of a company laptop he failed to return.
This litigation follows a period of increasing friction. While Apple initially integrated OpenAI’s ChatGPT into its “Apple Intelligence” suite, the relationship cooled as OpenAI’s hardware ambitions became clearer. The company claims it warned OpenAI about the potential for confidential information leaks in February but received no response.
The legal strategy mirrors a broader trend of aggressive talent acquisition disputes in Silicon Valley, where the line between hiring expertise and industrial espionage is frequently litigated. OpenAI previously faced similar accusations from Elon Musk’s xAI, though that case was dismissed earlier this year after a judge found insufficient evidence of encouraged disclosure.
Apple’s filing specifically targets the OpenAI Foundation and OpenAI Group PBC, seeking damages and an injunction to prevent further use of its proprietary data. The company alleges that the stolen information covers a wide array of proprietary project data and supplier details essential to its global supply chain.
