OpenAI Denies Trade Secret Theft Amid Apple's Legal Challenge
OpenAI denies Apple's trade secret theft allegations in ongoing lawsuit dispute.
Event / Security
Apple OpenAI Trade Secrets Lawsuit
Apple filed a lawsuit against OpenAI and two former Apple executives alleging systematic misappropriation of trade secrets related to unreleased products and manufacturing processes. The case reflects escalating tensions between the tech giants over AI hardware development.
3 reported locations
Daily activity
0 articles0 articles
2026-08-16 to 2026-11-13 · UTC publication dates
Coverage begins 11 Jul, 01:00 UTC
Follow the documented timeline or explore the related reporting.
What happened
Yu-Ting Peng allegedly transmitted Apple trade secrets to Liu while employed at Apple
Apple claims that Yu-Ting Peng, still employed at Apple at the time, engaged in in-depth communications with Chang Liu about confidential Apple projects while Liu was developing competing hardware at OpenAI. The lawsuit alleges Peng provided Liu with a steady stream of Apple's trade secret information, technical details about engineering projects, and vendor relationships before she herself departed Apple to join OpenAI in April 2026.
Apple files lawsuit against OpenAI alleging theft of trade secrets and confidential hardware information
Apple filed a lawsuit against OpenAI, OpenAI's subsidiary io, and individuals Tang Yew Tan, Chang Liu, and Yu-Ting Peng, alleging a coordinated pattern of trade secret theft and misappropriation. The lawsuit claims OpenAI systematically stole Apple's confidential information related to unreleased hardware products, manufacturing processes, and proprietary techniques to advance OpenAI's own AI hardware development.
Apple previously contacted OpenAI in February regarding information security concerns
Apple claims it emailed OpenAI in February 2026 expressing concerns about the transfer of confidential information between the companies and asking what steps OpenAI was taking to prevent such misappropriation. Apple alleges that OpenAI never responded to these inquiries.
Tang Yew Tan allegedly solicited confidential Apple project information during OpenAI job interviews
Apple alleges that Tang Yew Tan, OpenAI's Chief Hardware Officer and former 24-year Apple veteran who previously served as VP of product design for iPhone and Apple Watch, deliberately extracted confidential information from Apple job candidates during OpenAI interviews. The lawsuit claims Tan used Apple project codenames and quizzed candidates about unreleased products, while also instructing them to bring physical components, prototypes, and CAD designs from Apple to interviews for 'show and tell sessions.'
OpenAI allegedly misled Apple suppliers regarding authorization for proprietary metal-finishing technique
According to Apple's lawsuit, OpenAI approached one of Apple's trusted manufacturing partners and misled them into believing OpenAI had Apple's permission to use a confidential, proprietary multi-step metal-finishing technique. Apple claims OpenAI also contacted another supplier using internal Apple terminology and confidential information about power and battery components in targeted inquiries that only Apple insiders would know to ask.
OpenAI allegedly coached departing Apple employees on evading security procedures
Apple's lawsuit claims OpenAI obtained internal Apple documents detailing employee offboarding security procedures and used this information to coach departing Apple workers on how to bypass security checks. The allegations include advising employees not to disclose their new employer and helping them avoid the standard two-week security review period, allegedly to allow more time for accessing confidential information.
OpenAI statement denies interest in stealing trade secrets
OpenAI issued a statement through spokesperson Drew Pusateri stating the company has no interest in other companies' trade secrets and remains focused on building innovative technology. OpenAI indicated it is reviewing the lawsuit and has not yet provided detailed responses to the allegations.
Approximately 400 former Apple employees now work at OpenAI
Apple's lawsuit reveals that over 400 former Apple employees have left the company to work at OpenAI. Apple uses this figure to demonstrate the scale of the potential security risk, noting that while it is not surprising these personnel have knowledge of Apple's confidential information, OpenAI has allegedly exploited and misused this information.
Chang Liu allegedly retained Apple computer and exploited authentication bug to access confidential files
Former Apple engineer Chang Liu, who joined OpenAI in January 2026, allegedly failed to return company-issued computers after departure. According to Apple's lawsuit, Liu exploited a previously unknown authentication vulnerability in Apple's network to gain unauthorized access and downloaded dozens of confidential files including technical specifications, unreleased product details, and engineering presentations from Apple's systems weeks after leaving the company.
Apple files lawsuit against OpenAI alleging theft of trade secrets
Apple filed a civil lawsuit against OpenAI in the Northern District of California on Friday, alleging the AI company stole confidential trade secrets to accelerate its push into consumer hardware. The complaint describes a coordinated pattern of misconduct at an institutional level involving former Apple engineers and executives now working at OpenAI.
Apple claims OpenAI ignored request to investigate confidential information access
Apple states it raised concerns with OpenAI earlier in 2026 and requested the company investigate whether Apple's confidential information had entered its business. According to the complaint, OpenAI never responded to Apple's concerns.
Former Apple employee Chang Liu accused of downloading confidential files while at OpenAI
Apple alleges that former employee Chang Liu, who left for OpenAI in January, failed to return a company laptop and discovered he could still access Apple's internal systems due to an authentication bug. While working at OpenAI, Liu downloaded dozens of confidential engineering files including documents related to unreleased products, technical specifications, presentations, and manufacturing processes.
Apple seeks damages and court orders to prevent OpenAI use of trade secrets
Apple is seeking damages in an amount to be determined at trial and court orders preventing OpenAI and individual defendants from possessing or using Apple's trade secrets.
Apple alleges OpenAI used recruiting to obtain confidential information
Apple alleges OpenAI systematically used its job recruitment process to steal trade secrets. The complaint states that OpenAI Chief Hardware Officer Tan asked Apple job candidates to bring physical components for show and tell sessions during interviews and requested prototypes and information about vendors. One candidate is alleged to have downloaded files from a highly confidential Apple project that Tan later asked about during the interview.
OpenAI Chief Hardware Officer Tang Tan previously worked at Apple for 24 years
OpenAI Chief Hardware Officer Tang Tan is a former Apple vice president who spent 24 years at the company, where he helped design the iPhone, Apple Watch, and iPod according to the lawsuit.
Apple contacted OpenAI in February with trade secret concerns
Apple sent a letter to OpenAI in February 2026 raising concerns about potential trade secret misappropriation by former Apple employees working at OpenAI. Apple received no response from OpenAI to the letter.
OpenAI acquired Jony Ive's io Products startup for $6.5 billion
OpenAI acquired io Products, a hardware startup founded by former longtime Apple designer Jony Ive, in a $6.5 billion deal to accelerate the AI company's expansion into consumer hardware development. Ive is not named as a defendant in Apple's lawsuit against OpenAI.
Tang Tan allegedly directed OpenAI recruiting to obtain Apple trade secrets
Tang Tan, OpenAI's Chief Hardware Officer and former Apple VP of product design for iPhone and Apple Watch, allegedly instructed job candidates to bring Apple hardware components to interviews, asked them about unannounced Apple products, used Apple's confidential project code names during recruiting, and coached departing Apple employees on how to evade Apple's security procedures.
Apple files lawsuit against OpenAI alleging trade secret theft
Apple filed a lawsuit in the U.S. District Court for the Northern District of California against OpenAI, io Products, and former Apple executives Chang Liu and Tang Yew Tan, alleging systematic misappropriation of confidential information related to unreleased products, manufacturing processes, and supply chain strategies to accelerate OpenAI's hardware development efforts.
OpenAI reportedly considered legal action against Apple in May 2026
In May 2026, OpenAI was exploring legal options against Apple, including notifying the technology company of a breach of contract, though the company had not yet decided whether to file a full lawsuit, amid tensions over their partnership and integration expectations.
Read the coverage
2 alternative perspectives
Apple Details Methods Alleged in OpenAI Trade Secret Theft
Apple alleges OpenAI used laptop retention, authentication exploits, and employee coaching to systematically steal trade secrets.
Apple Details Trade Secret Theft Allegations Against OpenAI
Apple alleges OpenAI systematically recruited employees and obtained trade secrets, seeking damages and court orders to prevent further misuse.
OpenAI Weighed Legal Action as Apple Partnership Tensions Mounted
OpenAI weighed legal action against Apple while the companies maintained their ChatGPT partnership.
OpenAI's Apple Talent Exodus Accelerates With io Products Acquisition
OpenAI acquired io Products for $6.5 billion as over 400 Apple employees now work there.
Apple Alleges OpenAI Obtained Trade Secrets Through Employee Recruitment
Apple alleges OpenAI stole trade secrets through employee recruitment and file transfers.