Apple has sued OpenAI, accusing the AI startup of stealing trade secrets and confidential information through current and former Apple employees to advance its own efforts to enter the consumer hardware market.
The lawsuit primarily revolves around the alleged actions of three people:
Tang Tan, OpenAI’s Chief Hardware Officer: Tan previously served as vice president of Apple Watch. In 2024, he left the company to join Jony Ive’s hardware company, io Products, which OpenAI acquired last year.
Chang Liu, Member of Technical Staff at OpenAI: Liu worked as a systems electrical engineer on the iPhone for over eight years. Liu exited Apple in January 2026 to join OpenAI.
Yu-Ting “Alyssa” Peng: A former Apple employee who joined OpenAI in April 2026.
They are accused of taking Apple’s trade secrets and confidential information, including unreleased product designs and components they were working on, to OpenAI, which is building its own AI hardware, expected to be launched next year.
“Apple has uncovered a pattern of theft of Apple’s trade secrets by OpenAI employees who were formerly at Apple,” the complaint reads.
Here are the key allegations in Apple’s 41-page lawsuit against OpenAI.
1. OpenAI’s hardware chief allegedly digs for confidential Apple projects during interviews: When a former Apple employee interviewed for a job at OpenAI, Tan asked him about a “top-secret project for an unreleased new Apple product”. The lawsuit alleges Tan has been using Apple’s internal information to solicit its trade secrets from job candidates.
In another instance, Apple claims a former employee “began screenshotting and downloading files related to a highly confidential Apple project” before a job interview with OpenAI. Tan allegedly asked for more information about that same project during the interview. Last year, Tan allegedly admitted to receiving confidential information about AI hardware startup Iyo.
2. Former Apple employees are allegedly asked to bring hardware components and product samples to OpenAI job interviews: Aside from digging information about Apple’s secret projects, Tan asked OpenAI job candidates to bring physical hardware components, “actual parts,” and product samples from their Apple work to their interviews for “show and tell” sessions that would disclose Apple’s proprietary technologies.
For example, messages left on an Apple-issued work device show that Tan asked an Apple employee to “bring some parts [she] worked on such as “Batteries,” “SIP” (Systems-in-Package), “mlb” (multi-layer or main logic boards), and “shields”, claiming it may “be good to show” other interviewers these Apple components.
Additionally, OpenAI is accused of asking interviewees to prepare “Technical Deep Dive” presentations, with slides revealing confidential information from their work at Apple.
3. OpenAI allegedly “coached” recruits to evade Apple’s security measures: Apple claims Tan improperly obtained an internal document titled “Need to Know” that describes employee offboarding procedures. The document details security processes Apple uses to protect the company’s confidential information when one of its employees is leaving.
OpenAI, which is heading for an IPO, allegedly disclosed this document to recruits before they notified Apple that they were leaving, providing them with advance notice of the company’s forensic and security checks.
“OpenAI has actively coached Apple employees on how to manage their exits from Apple in ways that avoid scrutiny,” the complaint says.
The lawsuit alleges that OpenAI also advised departing Apple employees not to disclose their next employer and also offered tips on how to avoid a “dreaded walk out,” which would result in their immediate removal from the company, preventing them from accessing Apple’s confidential information and trade secrets for another two weeks, as is the standard with Apple departures. OpenAI is accused of telling Apple employees not to “sign anything at the exit interview,” and if they’re asked to sign a document, to tell OpenAI “asap.”
In its lawsuit, Apple claims that OpenAI’s alleged tactics “appear to be having their desired effect.” Apple says it has noticed “a recent trend of employees who are leaving Apple for OpenAI and taking steps to evade security measures,” including workers “failing to provide two-weeks notice,” and “ignoring outreach by security personnel to schedule exit processes and security reviews.”
4. Apple accuses OpenAI of stealing its metal-finishing technique: Apple claims OpenAI used its confidential information to approach its “trusted partners,” including one that carries out a specific trade secret metal-finishing technique for its products. OpenAI allegedly misled Apple’s partner, making the company believe that OpenAI had Apple’s permission to use the metal-finishing technique.
“Apple has not given OpenAI or io permission to use or a license to any of Apple’s trade secrets or confidential information, including those it has entrusted with this partner,” the iPhone maker said.
Apple also accuses OpenAI of approaching “at least” one other supplier that works with the iPhone maker on manufacturing related to power and batteries. OpenAI allegedly used confidential information and internal codenames to ask “targeted questions” about Apple’s components “that would be useful in furthering OpenAI’s hardware ambitions.”
5. Former Apple engineer kept company-owned laptop and continued to access confidential files: During his eight-year stint at Apple as a Senior System Electrical Engineer, Liu had access to some of Apple’s most sensitive product development programs. After quitting Apple, he allegedly did not respond to requests to sign a confidentiality reminder, schedule an exit interview, or confirm that he returned company-owned devices, as is standard with departures at Apple. Instead, Apple claims Liu “failed to return” an Apple-issued work laptop and told a former colleague he still had “another computer” on which he planned to access Apple’s confidential information.
Liu also allegedly continued to access Apple’s cloud-based network storage for weeks after departing without Apple’s permission, exploiting a previously unknown authentication vulnerability. “Mr. Liu celebrated his find with Ms. Peng and set about exploiting it: ‘LOL, I found out I can access the [network storage], so funny,’” Apple claims. “Ms. Peng’s response was immediate: “‘I’m ready.’”
Among the files Liu downloaded is a presentation concerning the manufacture and testing of MLBs (multi-layer or main logic boards)—complex circuit boards in Apple’s hardware. The presentation details the manufacturing process, testing workflows, data captured during testing and how to interpret it, and more, with photographs and accompanying analyses.
6. Peng is accused of siphoning confidential Apple information to Liu: Liu’s theft of dozens of confidential files and trade secrets from Apple’s network is not his only offence, Apple claims. While he was working with OpenAI, Liu received frequent updates from Peng about Apple’s projects, engineering details, and vendor relationships. “Ms. Peng and Mr. Liu would engage in depth about those confidential projects, while Mr. Liu was working on developing OpenAI’s competing hardware,” Apple claims. “Mr. Liu’s work for OpenAI was informed by a steadily flowing stream of Apple’s trade secret information from Ms. Peng.”
Apple also claims that Liu informed Peng on how to access and copy files from Apple’s devices “to avoid trouble with the security team,” while pointing her to “specific Apple project folders and proprietary engineering data.” Peng departed Apple for OpenAI in April 2026.
Apple wants access to evidence behind OpenAI’s hardware: Apple is asking for damages (the amount will be determined at trial), but that is only one of its demands. The company is also seeking an injunction, restraining OpenAI from acquiring, possessing, using, or disclosing its alleged trade secrets and confidential information. It also wants OpenAI to return all copies of Apple’s trade secrets currently in its possession and preserve evidence relevant to Apple’s claims.
“Preserved” means the defendants could be asked to retain relevant emails, messages, files, designs, access logs, and internal documents rather than deleting or destroying them while the lawsuit moves forward.
Apple will also rely on the discovery process. Discovery is the pre-trial phase in a lawsuit where opposing parties exchange evidence, witness information and relevant information. Depending on what a judge allows, Apple could seek internal OpenAI communications, recruiting records, design documents, supplier correspondence, and information evidencing how the company built its AI hardware device.
Apple’s complaints come at a time when OpenAI is fighting lawsuits on multiple fronts, with allegations ranging from stealing trade secrets, copyright infringement and ChatGPT acting as a “suicide coach”.
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