Apple Sues OpenAI Over Alleged Hardware Trade Secrets Theft

The tech landscape is bracing for a massive legal battle that could reshape the consumer electronics market. Apple has filed a federal lawsuit against OpenAI in the U.S. District Court for the Northern District of California, accusing the artificial intelligence giant of executing a systematic campaign to steal hardware trade secrets. According to a report by Hypebeast, the 41-page complaint alleges that OpenAI and its recently acquired hardware subsidiary, io Products, targeted Apple's proprietary information to advance its own physical device ambitions. The lawsuit names former Apple engineers Tang Yew Tan and Chang Liu as defendants. Tan, who spent 24 years at Apple and served as vice president of product design, is now OpenAI's Chief Hardware Officer. The complaint alleges Tan directed job candidates to bring physical Apple prototypes—including batteries and main logic boards—to interviews. Meanwhile, Liu is accused of exploiting a network flaw to download over 1,000 pages of confidential hardware files. This litigation introduces severe friction into a major commercial partnership. The two companies famously partnered in 2024 to integrate ChatGPT into Siri and Apple Intelligence. While Apple notes that the integration agreement remains separate and is not being challenged, this lawsuit proves that business alliances in Silicon Valley are fragile when hardware dominance is at stake. OpenAI spokesperson Drew Pusateri has denied the allegations, stating the firm is focused on independent innovation. Apple is seeking injunctions, the return of all stolen property, and exemplary damages.