Why Apple Sued OpenAI: Inside the Allegations of Hardware Secret Theft

Apple’s Complaint

Apple filed a 41‑page complaint (case 5:26-cv-07078) in the Northern District of California accusing OpenAI, its subsidiary io Products, and former Apple employees Tang Yew Tan and Chang Liu of misappropriating unpublished product designs, manufacturing processes, and supplier relationships.

Allegations Against Chang Liu

Liu left Apple in January 2026, kept an Apple computer, exploited an authentication flaw to access Apple’s network storage, and downloaded dozens of confidential files, including over 1,000 pages of technical material covering unreleased products, engineering demos, specifications, and the manufacturing and testing workflow of the main logic board.

Allegations Against Tang Tan

Apple alleges Tang Tan, who spent 24 years at Apple and was vice‑president of iPhone and Apple Watch hardware design, used internal project code names during interviews and demanded candidates bring actual Apple parts—batteries, logic boards, packaging, shielding components—to demonstrate their expertise. The interview also required discussion of CAD designs, prototypes, supplier choices, and a “Need‑to‑Know” internal safety document that Tan allegedly shared with departing employees.

Supply‑Chain Claims

Apple further claims OpenAI or io Products leveraged information from former Apple executives to approach Apple suppliers, obtaining a metal‑surface‑treatment process and probing another supplier about power‑battery and manufacturing designs using Apple’s internal terminology.

Legal Basis and Remedies

The suit contains four DTSA trade‑secret misappropriation claims and two breach‑of‑contract claims, seeking injunctions, preservation of evidence, return of materials, and damages. Apple stresses the complaint reflects its allegations, not a court finding; OpenAI has said it is reviewing the documents.

Background Context

Apple integrated ChatGPT into Siri in 2024 and later incorporated Jony Ive’s io Products team into OpenAI, turning OpenAI from a model supplier into a potential hardware competitor. The lawsuit explicitly excludes the existing ChatGPT‑Apple Intelligence agreement from the dispute.

Legal Analysis

To prevail, Apple must demonstrate the information qualifies as a trade secret, that reasonable protective measures were taken, and that OpenAI obtained or used the secrets through improper means. The case’s outcome hinges on linking the downloaded files, interview materials, and any subsequent OpenAI hardware development.

Potential Impact

A preliminary injunction could force OpenAI to prove its hardware designs are independently created, potentially slowing its consumer‑hardware roadmap and affecting future collaboration with Apple.