Apple sues OpenAI alleging systematic theft of trade secrets by former employees
Apple sues OpenAI for alleged systematic theft of trade secrets in escalating Silicon Valley legal battle
Apple filed a federal lawsuit in California on Friday accusing OpenAI of orchestrating a coordinated campaign to steal confidential product designs, manufacturing processes and supplier data through former employees, marking a dramatic collapse in relations between two of the world’s most valuable technology companies.
The complaint, lodged in the U.S. District Court for the Northern District of California, names OpenAI, two former Apple executives and io Products, a hardware start-up acquired by OpenAI last year for $6.5 billion. According to Apple, the scheme involved at least two long-serving employees who left Cupertino to join OpenAI and systematically exfiltrated internal files, including a 1,000-page technical compilation detailing the manufacturing of Apple’s circuit boards.
Among those accused is Tang Yew Tan, a 24-year Apple veteran who served as vice president of iPhone and Apple Watch design before departing in 2024 to co-found io Products alongside Jony Ive. Apple alleges Tan now leads OpenAI’s hardware division. The second named defendant is Chang Liu, an electrical engineer who worked on sensitive iPhone projects for eight years before joining OpenAI in January. The lawsuit claims Liu retained a company laptop after his departure, discovered an authentication flaw that granted continued access to internal servers, and then downloaded dozens of confidential documents over several weeks.
Apple’s filing describes what it calls “a pattern of theft,” including instructions allegedly given by Liu to a former colleague about copying files “without problems with the security team” and which confidential materials to study ahead of an OpenAI job interview. Communication, according to the complaint, was routed through an alternative messaging application to avoid detection.
OpenAI responded through a spokesperson who told the BBC that the company “has no interest in the trade secrets of other companies” and is reviewing Apple’s allegations. Apple countered that its lawsuit rests on “significant evidence,” according to a company spokesman quoted by the same outlet.
The legal dispute intensifies a once-collaborative relationship: Apple integrated ChatGPT into iOS and Siri earlier this year, and OpenAI’s models power several Apple services. Analysts note that OpenAI has hired more than 400 former Apple employees, including senior hardware designers, as it races to launch consumer AI devices that could directly compete with the iPhone. The lawsuit seeks injunctive relief and unspecified damages, signaling Apple’s determination to halt what it portrays as a sustained industrial-espionage operation.
Legal experts say the case could hinge on proving OpenAI’s institutional involvement rather than isolated employee misconduct. The complaint alleges the company incentivized the recruitment of Apple staff specifically to accelerate its hardware roadmap, a claim that, if substantiated, would represent one of the most brazen corporate espionage cases in Silicon Valley history.
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