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Apple sues OpenAI over alleged trade secret theft

Brandon Doggett Avatar

Apple sued OpenAI on Friday in a California federal court, accusing the ChatGPT maker and two former Apple employees of stealing confidential information and funneling the company’s trade secrets to a rival racing to build its own hardware.

The complaint names Tang Yew Tan, a 24-year Apple veteran who led product design for the iPhone and Apple Watch before becoming OpenAI’s chief hardware officer, and Chang Liu, a former senior electrical engineer at Apple who also joined OpenAI. Apple says OpenAI instructed its employees to bring design prototypes, internal tools and vendor communications to job interviews and to divulge details about unreleased products.

Apple alleges Tan asked interview candidates about the status of unannounced Apple devices and told them to bring “actual parts” for “show and tell” sessions. Liu downloaded dozens of confidential hardware files and coached a departing colleague on how to avoid scrutiny, according to the filing. Apple says other former employees emailed confidential material to their personal accounts on the way out.

The suit deepens a rift between two companies that agreed in 2024 to weave ChatGPT into Siri. That partnership has frayed, and OpenAI was reported in May to be weighing legal action of its own against Apple. OpenAI is now building consumer hardware meant to rival the iPhone, an effort Tan leads.

OpenAI has not publicly responded to the complaint. The case will proceed in federal court.

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