Apple Sues OpenAI: 400 Former Employees and AI Hardware Dispute

TL;DR
· Apple has filed a lawsuit against OpenAI in a U.S. court, claiming that it recruited over 400 former Apple employees and systematically obtained trade secrets to develop consumer-grade AI hardware.
· The lawsuit names OpenAI's Chief Hardware Officer Tang Tan and technician Chang Liu as defendants, accusing them of requiring candidates to bring components, leaking unreleased product information, and downloading internal documents.
· The lawsuit could impact OpenAI's upcoming AI hardware and IPO plans, but the case is expected to last for years, with the related allegations still pending court review.

The competition between Apple and OpenAI has officially escalated from AI models and system collaborations to the courtroom.

According to The Information, Apple has sued OpenAI and several former Apple employees in the U.S. District Court for the Northern District of California, accusing them of long-term, organized acquisition of Apple's trade secrets for the development of consumer-grade AI hardware products. Apple claims that since OpenAI launched its hardware project, over 400 former Apple employees have joined the company, including former iPhone product head and current OpenAI Chief Hardware Officer Tang Tan, as well as technician Chang Liu.

This is the first public legal confrontation following a sharp deterioration in relations between the two parties. Two years ago, Apple integrated ChatGPT into Apple Intelligence, being seen as one of OpenAI's most important partners; now, the focus of their competition has shifted from AI software to consumer-grade hardware.

Apple Claims OpenAI Continues to "Poach" for Hardware Projects

Apple believes in the lawsuit that this is not an ordinary talent flow, but a systematic recruitment plan centered around AI hardware.

The complaint shows that Tang Tan is one of the main recruitment leaders for OpenAI's hardware team. Apple claims that he discussed supply chain matters with OpenAI or its partners before leaving and sent himself Apple supplier information and internal industry data. After joining OpenAI, he required some candidates still working at Apple to disclose unreleased product information during the recruitment process and even to bring Apple hardware components to interviews to gain more internal information.

Apple also accuses OpenAI of requiring candidates to share research and development information such as product designs, CAD files, prototypes, supplier collaboration methods, and system integration tools during the recruitment process, and providing new employees with advice on how to avoid detection by Apple's security team regarding these actions. The above content comes from Apple's complaint and remains unilateral accusations that have not yet been verified by the court.

Chang Liu Accused of Exploiting Vulnerabilities to Download Confidential Files

Apple has also named another former employee, Chang Liu, as a defendant.

According to the complaint, after leaving Apple, Chang Liu retained an Apple work computer and exploited a previously unknown authentication vulnerability in Apple's enterprise system to access and download dozens of confidential documents related to hardware development.

Apple further claims that Chang Liu also guided Apple employees being recruited by OpenAI on how to replicate internal materials without being detected by Apple's security team. During the investigation, Apple believes it discovered a broader pattern: some former employees who joined OpenAI had sent internal Apple materials to personal email accounts before leaving, while others used the trade secrets they possessed to participate in OpenAI's hardware development.

OpenAI responded by stating that the company is "not interested in the trade secrets of other companies" and has always focused on developing innovative AI technologies. Tang Tan and Chang Liu have not publicly responded to the related accusations.

The Lawsuit Behind OpenAI's Hardware Plans

The background of Apple's lawsuit is that OpenAI is rapidly advancing its AI hardware layout.

Last year, OpenAI acquired io Products, founded by Tang Tan and former Apple Chief Design Officer Jony Ive, in an all-stock deal worth approximately $6.5 billion, which has become an important foundation for OpenAI's hardware business.

According to previous reports from The Information, OpenAI has discussed multiple products with suppliers, including screenless smart speakers, AI glasses, digital recording devices, and wearable devices, planning to launch its first products between late 2026 and early 2027. Apple also pointed out in the lawsuit that OpenAI has recruited a large number of Apple hardware employees from various teams, including product design, display, antennas, supply chain management, and procurement.

Apple simultaneously accuses OpenAI of misleading an Apple supply chain partner into believing it had obtained Apple's authorization, thereby providing OpenAI with metal surface treatment processes used internally by Apple.

AI Hardware Competition Enters Legal Phase

This lawsuit involves not only talent flow but also signifies a new phase in the competition between Apple and OpenAI.

Apple believes that OpenAI's hardware business relies heavily on Apple's trade secrets during its establishment; however, OpenAI has not yet publicly released any hardware products, and the aforementioned accusations still need to be reviewed by the court and subjected to evidence verification.

Historically, lawsuits over intellectual property between Apple and companies like Samsung and Qualcomm often last for years, so this case may not immediately affect OpenAI's product release schedule. However, for an AI company that has already secretly submitted IPO documents and is preparing to enter the consumer hardware market, this lawsuit adds legal and compliance uncertainties, indicating that the competition in AI hardware is extending from model capabilities and talent acquisition to intellectual property and supply chains.