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Apple sues OpenAI for trade theft, sending shock waves through Silicon Valley

July 10, 2026
in Business
Reading Time: 3 mins read
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Apple sues OpenAI for trade theft, sending shock waves through Silicon Valley
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Apple sued OpenAI and two ex-employees in a bombshell suit accusing them of stealing the consumer tech giant’s trade secrets.

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The complaint alleging coordinated theft of product designs, manufacturing processes and supply chain strategies was filed Friday in the US District Court for the Northern District of California.

“This case is about Apple’s former employees stealing Apple’s trade secrets for the benefit of OpenAI. Apple brings this suit to put a stop to it,” the lawsuit stated.

The complaint alleged theft of product designs, manufacturing processes and supply chain strategies. AP Photo/Matthias Schrader

The sued employees were identified as Chang Liu, a former senior system electrical engineer at Apple, and Tang Yew Tan, a former VP of product design. They went to work for OpenAI in 2024 and this year, respectively — taking unreleased Apple tech with them, the suit alleged.

Liu was accused of failing to return an Apple-issued work laptop, later exploiting a bug to access the company’s internal network and downloading “dozens of Apple’s confidential hardware-related files” while working for OpenAI.

He “celebrated his improper access, exclaiming in a message left on his colleague’s Apple-issued work laptop ‘LOL’ and that it was ‘so funny,’” the suit stated.

The complaint also said Tan “has been methodically using Apple’s confidential information to benefit OpenAI” — emailing himself info about the company’s suppliers and internal industry summaries before his exit.

He also directed Apple employees applying to work for OpenAI to bring “‘actual parts’ from Apple to their interviews for ‘show and tell’ sessions,” according to the suit.

Stunningly, such machinations came at OpenAI’s behest, the suit stated.

“This is part of OpenAI’s strategy to extract Apple’s confidential information,” it read, adding: “OpenAI also instructs new hires on how to avoid scrutiny when they leave Apple.”

Tang Yew Tan, a former VP of product design. linkedin/tangtan/

OpenAI denied the allegations against it.

“We have no interest in other companies’ trade secrets,” spokesman Drew Pusateri said in a statement. “We remain focused on building innovative technology that empowers people everywhere.”

The suit seems sure to end the high-profile partnership Apple and OpenAI launched in 2024, with the consumer hardware company integrating the AI lab’s tech into the iPhone operating system.

Chang Liu, a former senior system electrical engineer at Apple. linkedin/chang-liu

Apple has been on a drive to increase its AI efforts after lagging behind competitors for years.

OpenAI recently ventured into the hardware space, buying io Products — founded by former Apple designer Jony Ive — in a $6.5 billion deal last year. Tan worked for Ive, according to 9 to 5 Mac.

“At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously,” Apple told The Post in a statement.

OpenAI recently ventured into the hardware space, buying io Products — founded by former Apple designer Jony Ive — in a $6.5 billion deal last year. Tan worked for Ive, according to 9 to 5 Mac. OpenAI CEO Sam Altman, above. Getty Images

“Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products. We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so.”

The suit emphasized the “institutional” nature of OpenAI’s alleged trade theft.

“This is the tip of the iceberg,” it said.

“Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership,” the suit continued.

“This much is clear, however: 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.”

The Post has sought comment from OpenAI.

With Post wires

Credit: Source link

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