Apple files lawsuit against OpenAI alleging trade secret theft and employee poaching

Apple has initiated a lawsuit against OpenAI, alleging a systematic pattern of trade secret misappropriation and the poaching of over 400 Apple employees. The legal complaint, filed in July 2026, claims that OpenAI is actively recruiting Apple engineers to gain access to confidential project information and proprietary hardware strategies. Specifically, the lawsuit highlights the actions of former Apple vice president Tang Yew Tan and senior electrical engineer Chang Liu, who allegedly utilized Apple’s internal network storage and confidential project data after joining OpenAI. Apple further contends that OpenAI provided employees with instructions on how to circumvent security protocols and avoid detection during their resignations. The lawsuit also references OpenAI’s acquisition of the startup IO for $6.5 billion, suggesting a strategic move to integrate former Apple talent into its own hardware development efforts. Apple asserts that these actions constitute a breach of contract and illegal reliance on stolen intellectual property, characterizing OpenAI’s hardware business as fundamentally compromised by these practices.

Apple filed a 41-page lawsuit against OpenAI for trade secret misappropriation and breach of contract. The complaint alleges that OpenAI has poached more than 400 former Apple employees to bolster its hardware division.

Former Apple vice president Tang Yew Tan is accused of directing job candidates to bring confidential Apple prototypes to interviews. The lawsuit claims OpenAI provided a 'cheat sheet' to employees on how to bypass security protocols when resigning.

Chang Liu allegedly accessed Apple's internal network storage for confidential data after his departure to OpenAI. OpenAI reportedly acquired the startup IO for $6.5 billion to accelerate its hardware development strategy.