Apple Accuses OpenAI of Extensive Trade Secret Theft Involving Former Employees and Secret Recruitment Tactics

Apple’s recent lawsuit against OpenAI paints a dramatic picture of alleged corporate espionage involving stolen laptops, data breaches, and covert recruitment efforts. Filed in mid-2026, the 41-page complaint accuses OpenAI and several former Apple employees of systematically misappropriating Apple’s trade secrets, which Apple describes as some of the most valuable intellectual assets in American business.

Central to the case are two lesser-known OpenAI employees: Tang Yew Tan and Chang Liu. Apple claims both engaged in a "pattern of theft" of confidential information. The company is pursuing legal action against them for breach of intellectual property agreements and misappropriation of trade secrets under the Defend Trade Secrets Act.

While Jony Ive, the famed ex-Apple designer and co-founder of the AI hardware startup io, is not named directly in the suit, his involvement is implied. Apple is also suing io, which OpenAI acquired in 2025, and OpenAI itself as an entity.

OpenAI has responded by stating it has "no interest in other companies’ trade secrets" and is reviewing the lawsuit. The company emphasized its focus on developing innovative technology to empower users worldwide.

The lawsuit reveals that OpenAI is developing an AI-powered device, about which it has disclosed minimal details. CEO Sam Altman described an early prototype in May 2025 as "the coolest piece that the world will have ever seen." This device is expected to compete with smartphones as a primary platform for AI access, potentially through smart glasses, AI pins, or other form factors.

Apple and OpenAI initially partnered in late 2024 to integrate ChatGPT into Apple’s revamped Siri voice assistant. However, the relationship deteriorated after Apple selected Google Gemini as its preferred AI partner in January 2026, preceding the current legal dispute.

Chang Liu, who worked at Apple for eight years as a senior system electrical engineer, joined OpenAI’s San Francisco office in January 2026. Apple alleges Liu failed to return at least one company-issued laptop and ignored requests for an exit interview or confirmation of device returns.

Following his departure, Liu allegedly maintained contact with Yu-Ting "Alyssa" Peng, an Apple employee who later joined OpenAI. Apple contends that Peng shared confidential project details with Liu, who then used this information to inform his work at OpenAI.

The complaint further alleges that Liu assisted Peng in preparing for her OpenAI interview by directing her to study proprietary Apple materials, facilitating her hiring. Peng is not named as a defendant.

Apple claims Liu exploited a previously unknown authentication bug to access Apple’s corporate network using Peng’s Apple-issued computer and the laptop he failed to return. He reportedly messaged Peng, "LOL, I found out I can access the [network storage], so funny."

Liu allegedly downloaded dozens of confidential hardware-related files, including detailed information on unreleased products, engineering presentations, technical specifications, and proprietary project data. One example cited is a presentation on manufacturing and testing a specific circuit board.

Before leaving Apple, Liu purportedly helped Peng copy files discreetly and instructed her on which files to take without alerting Apple’s security team.

Tang Yew Tan, who spent approximately 25 years at Apple overseeing product design for the iPhone and Apple Watch, left Apple in March 2024. He initially joined a stealth hardware startup, likely io, before becoming OpenAI’s Chief Hardware Officer in July 2025 following io’s merger with OpenAI.

Apple alleges Tan engaged in covert recruitment tactics, interviewing current Apple employees and eliciting sensitive information by referencing Apple project codenames. The lawsuit states OpenAI has hired about 400 former Apple employees.

Tan reportedly encouraged recruits to bring CAD designs and prototypes and to disclose details about Apple’s suppliers. One Apple employee expressed surprise at being asked to bring such materials, noting, "I didn’t even know we could take those from the office."

Tan allegedly coached new hires to conceal their departure for OpenAI to prolong their tenure at Apple, facilitating continued access to confidential information. Before leaving, Tan is accused of obtaining a document outlining Apple’s security procedures for departing employees, which Apple believes was used to circumvent protections for its confidential data.