Apple sues OpenAI for trade secret theft, names 400+ poached engineers

Apple has filed a federal lawsuit against OpenAI in the Northern District of California, accusing the ChatGPT maker of systematically stealing trade secrets to build its upcoming AI hardware device. The suit names two former Apple employees and io Products — the Jony Ive-led design startup OpenAI acquired for $6.5 billion — as co-defendants. Apple's filing describes OpenAI's hardware operation as "rotten to its core."

The scheme

The lawsuit centers on two former Apple insiders. Chang Liu, a former senior engineer, joined OpenAI in January 2026 and allegedly failed to return an Apple laptop — then used the retained device to access Apple's servers and download dozens of confidential files covering unreleased products, technical specs, engineering presentations, and internal project plans.

The second defendant, Tang Tan, is a 24-year Apple veteran who now serves as OpenAI's hardware chief. Apple claims Tan directed recruiters to ask job candidates who still worked at Apple to bring actual hardware components to interviews — a tactic designed to extract confidential information under the guise of a hiring process.

More broadly, per 9to5Mac, Apple's filing states that over 400 former Apple employees now work at OpenAI, and that the recruiting process was deliberately structured to encourage candidates to reveal proprietary information. The suit describes this as an organized scheme operating at every level of the organization.

The stakes

Apple sent OpenAI a cease-and-desist letter in February 2026. OpenAI did not respond, and Apple filed suit in July. Io Products is named as a co-defendant; Jony Ive is not named directly in the filing.

The timing is difficult for OpenAI. As CNBC reports, the company is preparing for an IPO while simultaneously facing this suit and a separate Elon Musk trial — compounding investor scrutiny at a critical moment. OpenAI's AI hardware device, originally expected in 2026, has already slipped to 2027.

What makes this particularly complicated: Apple and OpenAI are still partners. ChatGPT is integrated into Siri as part of Apple Intelligence, and Bloomberg notes that the coordinated campaign allegedly targeted hardware design details and product timelines specifically. Whether the commercial partnership survives the lawsuit intact is now an open question for both companies.