Apple Alleges Systematic Trade Secret Theft in Federal Lawsuit Against OpenAI

Apple has escalated its defense of its proprietary hardware designs, filing a federal lawsuit that accuses OpenAI of orchestrating a systematic campaign to steal trade secrets. The complaint, lodged in the U.S. District Court for the Northern District of California, alleges that the artificial intelligence firm recruited key Apple veterans to jumpstart its own hardware division using misappropriated engineering data.

The legal action centers on two former high-ranking employees: Tang Yew Tan, a former vice president of product design for the iPhone and Apple Watch, and Chang Liu, a senior electrical systems engineer. According to the filing, Liu allegedly retained a company MacBook after his resignation and exploited a security vulnerability to access a former colleague’s computer. Apple claims he downloaded dozens of confidential files, including technical specifications and engineering presentations for unreleased products.

This litigation highlights the intensifying friction in Silicon Valley over “talent poaching” and intellectual property, a trend often governed by the Defend Trade Secrets Act. While California law generally favors employee mobility, it provides strict protections against the transfer of proprietary technical data to competitors.

Apple’s allegations extend beyond individual theft, suggesting a corporate culture at OpenAI that encouraged the subversion of standard exit procedures. The lawsuit claims OpenAI advised incoming hires to avoid the “temited departure” process—a standard security measure where employees are immediately escorted from the premises—to maintain access to Apple’s internal systems for as long as possible.

The stakes are particularly high as OpenAI moves toward developing its first dedicated AI hardware, a project reportedly involving legendary designer Jony Ive. Apple contends that OpenAI’s hardware business is “rotten to the core,” built on a foundation of stolen supplier information and design schematics.

Internal investigations preceded the filing. Apple states it contacted Sam Altman’s firm to address suspicions regarding multiple former employees but received no response. The company is now seeking a court order to force OpenAI to destroy all misappropriated material and, crucially, to redesign its upcoming products to ensure no Apple-derived technology is utilized.

This confrontation marks a sharp reversal from the recent partnership between the two companies. Only months ago, the firms collaborated to integrate ChatGPT into the iOS ecosystem. However, that alliance has soured, with OpenAI reportedly considering its own legal action earlier this year over claims that Apple failed to sufficiently promote its AI tools.