Apple Sues OpenAI Over Alleged Hardware Trade Secrets

Summary Apple filed a federal lawsuit in California accusing OpenAI and its hardware subsidiary of a coordinated campaign to steal proprietary informationThe complaint names former Apple engineers Tang Yew Tan and Chang Liu as defendants for allegedly misappropriating confidential product designs and unreleased hardware filesOpenAI allegedly instructed job candidates to bring physical prototypes to interviews while Liu exploited a network vulnerability to download over 1,000 pages of proprietary data Apple has filed filed a federal lawsuit against OpenAI in the US District Court for the Northern District of California. The 41-page complaint accuses the artificial intelligence firm of executing a systematic campaign to steal hardware trade secrets to advance its own consumer electronics business. Legal filings detail an institutional pattern of misconduct involving the aggressive recruitment of hundreds of former hardware engineers and the solicitation of confidential manufacturing processes. The technology giant brings four claims under the Defend Trade Secrets Act and two breach-of-contract claims to halt the alleged intellectual property theft.The legal action targets OpenAI alongside its recently acquired hardware subsidiary io Products. The artificial intelligence company purchased io Products for nearly $6.5 billion USD in a push to develop a physical embodiment for ChatGPT. The lawsuit names OpenAI Chief Hardware Officer Tang Yew Tan and former electrical engineer Chang Liu as individual defendants. Tan spent 24 years at the iPhone maker and most recently served as vice president of product design. The complaint alleges Tan utilized internal project names during recruitment and directed job candidates to bring actual parts to interviews for show-and-tell sessions. The requested prototypes allegedly included batteries, main logic boards and unreleased system components.Liu worked as an electrical engineer for eight years before joining the artificial intelligence developer. The lawsuit claims Liu retained a company laptop after his departure and exploited a lingering authentication flaw to access protected network storage. Internal communications cited in the complaint show Liu messaging a former colleague to brag about the unauthorized access. The engineer allegedly downloaded over 1,000 pages of confidential hardware files containing technical presentations and proprietary testing methods. The technology giant states these protected designs were developed through decades of labor and hundreds of billions of dollars in research investment.OpenAI fiercely denied the allegations of corporate espionage. Company spokesperson Drew Pusateri stated the firm has no interest in competitors' proprietary information and remains entirely focused on independent innovation. The hardware push conflict severely complicates a prominent commercial relationship between the two Silicon Valley entities. The companies previously partnered in 2024 to integrate ChatGPT into Siri and Apple Intelligence ecosystems. The iPhone maker noted the integration agreement remains separate from the current litigation and is not being challenged. The plaintiff is currently seeking preliminary and permanent injunctions, the immediate return of all stolen property, reasonable royalties and exemplary damages. Click here to view full gallery at Hypebeast