Apple on Friday sued OpenAI and two former Apple employees, alleging a coordinated effort to steal confidential information as the AI company builds hardware for ChatGPT. The complaint, filed in a California federal court, claims the defendants misappropriated product designs, manufacturing processes and supply-chain strategies.
What Apple alleges
The suit names two former Apple engineers — Chang Liu, described as a senior system electrical engineer, and Tang Yew Tan, identified as a former vice president of product design for the iPhone and Apple Watch — alongside the OpenAI Foundation, OpenAI Group PBC and an entity called io Products. Apple says Liu failed to return a company-issued laptop and later used an authentication bug to access the company’s internal network, downloading numerous confidential hardware-related files.
Apple further alleges that Tan, who led hardware at OpenAI, systematically used Apple’s internal information to benefit OpenAI, including emailing himself details about Apple suppliers and internal industry summaries before leaving the company. The complaint also alleges Tan encouraged Apple staff to bring physical parts from Apple to job interviews at OpenAI for so-called "show and tell" sessions.
"didn’t even know we could take those from the office"
Why this matters
The lawsuit arrives as OpenAI expands from software into building its own hardware to run increasingly complex AI models. If Apple’s allegations are substantiated, the case could set a high-profile precedent about how companies protect engineering files, supplier relationships and manufacturing know-how — and how employee movement between rivals is governed.
- Alleged conduct: unauthorized access to internal systems, downloading of hardware files, and removal of physical components.
- Potential impact: legal scrutiny on hiring practices, trade secret protections, and partnerships between Big Tech and AI firms.
- Parties named: Apple, two former Apple employees, OpenAI Foundation, OpenAI Group PBC, and io Products.
Context and next steps
The complaint notes that more than 400 former Apple employees now work for OpenAI, a detail Apple says makes the alleged disclosures less surprising. OpenAI did not immediately respond to requests for comment, and the two former employees named in the suit had not publicly responded at the time of reporting.
The case will proceed in federal court, where Apple will seek remedies under trade secret and other employment and intellectual property laws. Beyond any immediate legal consequences, the litigation is likely to intensify debate in technology circles over how proprietary hardware knowledge is shared, secured and transferred when engineers change employers — particularly between established device makers and rapidly growing AI companies.
| Named defendants | Role |
|---|---|
| Chang Liu | Former senior system electrical engineer at Apple |
| Tang Yew Tan | Former vice president of product design (iPhone, Apple Watch) — OpenAI hardware chief |
| OpenAI Foundation / OpenAI Group PBC / io Products | AI company and affiliated entities |
As litigation unfolds, companies that design hardware and the AI systems that run on specialized processors will be watching closely. The outcome could influence how firms police internal access, monitor departing employees, and negotiate the movement of technical talent between rivals in the high-stakes race to build next-generation AI infrastructure.
