Apple sues OpenAI over trade secret theft, targets hardware chief Tang Tan
Synopsis
Apple's lawsuit against OpenAI isn't just a trade secret dispute — it's a full-scale indictment of how Silicon Valley's hottest AI firm allegedly weaponised its hiring machine. With a sitting hardware chief accused of coaching employees to carry secrets out the door, and 400 Apple recruits in the mix ahead of an IPO, the legal battle could redefine the rules of talent poaching in the AI era.
Key Takeaways
Apple has sued OpenAI and its chief hardware officer Tang Tan in the Northern District of California over alleged trade secret theft.
Tang Tan , a former Apple VP of product design , is accused of encouraging Apple staff to share confidential product details during job interviews.
Former Apple engineer Chang Liu is also named, accused of illegally accessing dozens of confidential Apple hardware files.
Apple alleges OpenAI 'actively coached' employees on exit strategies to retain access to secret files.
OpenAI has reportedly recruited approximately 400 Apple employees , according to the lawsuit.
Apple is demanding destruction of all proprietary materials and a redesign of OpenAI products built on allegedly stolen technology.
Apple has filed a lawsuit against artificial intelligence firm OpenAI and its chief hardware officer Tang Tan in the Northern District of California, alleging a coordinated campaign to steal confidential information about unreleased products. The suit, reported on 11 July, accuses OpenAI of systematically extracting trade secrets from Apple employees at multiple levels of the organisation.
Key Allegations Against OpenAI and Tang Tan
Tang Tan, who previously served as Apple's vice president of product design — overseeing development of the iPhone, Apple Watch, AirPods, and other hardware — is accused of encouraging Apple employees to divulge confidential product information during job interviews after joining OpenAI as its chief hardware officer.
The suit also names former Apple hardware engineer Chang Liu, alleging he illegally accessed dozens of Apple's confidential hardware-related files — including detailed materials on unreleased products and internal engineering presentations — to develop hardware for OpenAI.
The 'Coordinated Campaign' Apple Describes
Apple alleged in the filing that OpenAI 'actively coached' multiple employees on managing their exits in ways designed to preserve access to confidential files. The company stated: 'At every level, from members of its technical staff to its chief hardware officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information.'
According to the lawsuit, OpenAI has recruited approximately 400 Apple employees — a figure that Apple argues is not coincidental, given the timing ahead of OpenAI's anticipated initial public offering (IPO).
OpenAI's Response
OpenAI dismissed the allegations, stating it has 'no interest in other companies' trade secrets and remains focused on building innovative technology that empowers people everywhere.' The company has not elaborated further on the specific claims.
A Partnership Turned Adversarial
The legal action marks a sharp deterioration in what was once a close working relationship. OpenAI had supplied core technology to Apple's Apple Intelligence platform and the Siri digital assistant. Tensions reportedly escalated over the past year, partly fuelled by OpenAI enlisting former Apple design luminary Jony Ive to help develop its own hardware devices — a move widely seen as a direct competitive challenge.
Apple is demanding that OpenAI destroy any proprietary materials in its possession and redesign upcoming products to remove any technology allegedly copied from Apple. The case is being closely watched across the tech industry as it could set significant precedents around employee mobility, trade secret law, and the boundaries of AI hardware development.
Point of View
Not an individual lapse. The timing is telling: OpenAI is approaching an IPO and has partnered with Jony Ive on consumer hardware, placing it in direct competition with Apple for the first time. Courts have historically been reluctant to award sweeping injunctions in talent-mobility cases, but the scale of alleged recruitment — 400 employees — and the specificity of the file-access claims give Apple a stronger factual foundation than most. The real question is whether discovery will surface the coaching instructions Apple alleges exist.
NationPress
11 Jul 2026
Frequently Asked Questions
What is Apple's lawsuit against OpenAI about?
Apple has sued OpenAI and its chief hardware officer Tang Tan in the Northern District of California, alleging a coordinated campaign to steal trade secrets about unreleased products. The suit claims OpenAI encouraged Apple employees to share confidential information and coached them on exit strategies to retain access to secret files.
Who is Tang Tan and why is he named in the suit?
Tang Tan is OpenAI's chief hardware officer and a former Apple vice president of product design, where he led development of the iPhone, Apple Watch, and AirPods. Apple alleges he encouraged employees to divulge confidential product information during job interviews at OpenAI.
What role does Chang Liu play in the lawsuit?
Chang Liu, a former Apple hardware engineer, is accused of illegally accessing dozens of Apple's confidential hardware files — including materials on unreleased products and engineering presentations — to help develop hardware for OpenAI.
How did Apple and OpenAI go from partners to adversaries?
The two companies had collaborated closely, with OpenAI supplying technology to Apple's Apple Intelligence platform and Siri. Tensions escalated over the past year, reportedly accelerated by OpenAI recruiting former Apple design chief Jony Ive to develop its own hardware devices, placing the firms in direct competition.
What is Apple seeking from the court?
Apple is demanding that OpenAI destroy all proprietary materials allegedly in its possession and redesign any upcoming products that incorporate technology copied from Apple. The case is filed in the Northern District of California.
