Apple sues OpenAI over alleged trade secret theft

In short: Apple has sued OpenAI, saying OpenAI leaders and former Apple employees took Apple’s confidential information and used it to help OpenAI build competing hardware.

What happened

Apple filed a lawsuit in the U.S. District Court for the Northern District of California, accusing OpenAI of trade secret theft and breach of contract. A trade secret is a company’s private know-how, like unreleased product plans or internal methods (think of it like a secret recipe).

Apple’s complaint focuses on Tang Tan, OpenAI’s Chief Hardware Officer and a long-time former Apple executive. Apple says Tan used Apple’s confidential project code names during recruiting, asked candidates to bring Apple hardware components to interviews, and coached departing Apple employees on how to avoid Apple’s security steps. Apple also says he asked for details about Apple products that have not been announced.

The lawsuit also names Chang Liu, a former Apple engineer who joined OpenAI in 2026. Apple claims Liu did not return an Apple-issued laptop and used it to download confidential technical documents. Apple also alleges Liu shared confidential information with other Apple employees who were applying to OpenAI, including advice on what to study for interviews.

Apple says it raised concerns in a letter to OpenAI in February and did not receive a response. Apple is asking the court to stop OpenAI from using or sharing the alleged trade secrets, require the return of Apple materials, and preserve evidence.

Why it matters

This case could shape how aggressively big tech companies fight over employees and product plans, especially as OpenAI is rumored to be working on its first hardware device that could compete with the iPhone. It also highlights how important private internal information can be, even if it is just a code name or a manufacturing method.

Source: TechCrunch AI