In a development that has caught the attention of the tech and legal communities, Apple has initiated a federal lawsuit against OpenAI and its hardware arm, io Products, accusing them of using stolen trade secrets to advance OpenAI’s consumer device initiatives. The lawsuit, lodged in the US District Court for the Northern District of California, prominently features OpenAI’s Chief Hardware Officer Tang Yew Tan and engineer Chang Liu. Apple alleges that the defendants engaged in systemic misconduct, exploiting confidential information spanning product designs, manufacturing techniques, and supplier relations. This legal move presents a daunting challenge for OpenAI, especially given their current partnership in integrating ChatGPT into Apple products, as detailed in a report from JURIST.
The complaint highlights unauthorized access and theft of sensitive data, underscored by Liu’s alleged downloading of hundreds of documents while exploiting an authentication flaw that permitted ongoing network access. Notably, Liu has a history with Apple, having spent eight years at the company before his departure in early 2026. In a striking revelation, a communication purportedly from Liu to a former colleague suggests a cavalier attitude towards this unauthorized access.
Tang’s involvement is marked by alleged attempts to gain proprietary insights during job interviews with Apple employees, reportedly requesting candidates to bring hardware components and design materials for evaluation. Given Tang’s prior role as vice president of product design at Apple, these actions are particularly contentious.
The lawsuit references four claims under the federal Defend Trade Secrets Act alongside two breach-of-contract claims. The Act under 18 USC §1836(b)(1) empowers trade-secret owners to initiate civil actions when their secrets pertain to interstate or international commerce. Remedies include injunctions, damages, royalties, and, in cases of willful misconduct, exemplary damages.
This legal conflict complicates an economically significant relationship between the tech giants, which began with Apple’s integration of ChatGPT into its ecosystem in 2024. Apple has clarified that its litigation is distinct from its existing ChatGPT collaboration.
Trade-secret disputes like this one are not without precedent in the tech industry. Apple had previously brought similar charges against chip startup Rivos, resulting in a settlement, while Waymo’s legal battle with Uber over self-driving technology ended similarly.
In its lawsuit, Apple asserts that its proprietary product designs and processes represent decades of development efforts and substantial financial investment. The company is seeking both preliminary and permanent injunctions, the preservation of electronic evidence, return of its data, monetary damages, and a jury trial. The defendants are required to respond to the accusations, with a future court decision determining the validity of Apple’s trade-secret claims and whether any improper acquisition or use occurred.