Apple Files Lawsuit Against OpenAI Over Alleged Trade Secret Theft

Apple has filed a federal lawsuit against OpenAI in the US District Court for the Northern District of California, accusing the AI company of systematic trade secret misappropriation and breach of contract. The suit centers on allegations involving former Apple engineer Chang Liu, who is said to have retained an Apple-issued MacBook after leaving the company in January 2026, which contained sensitive engineering documents.

According to Apple, Liu exploited an authentication vulnerability to access and download over 1,000 pages of confidential files, including critical hardware schematics. The lawsuit also names OpenAI's hardware subsidiary io Products, its Chief Hardware Officer Tang Yew Tan, and Liu as defendants. Apple claims that Tan engaged in inappropriate recruitment practices, soliciting Apple hardware components during interviews.

The backdrop to this legal battle is OpenAI's reported $6.5 billion acquisition of io Products in 2025, which marked the company's serious ambitions in hardware, an area where Apple has established significant proprietary advantages. Apple argues that the situation poses a threat to decades of trade secrets in the hardware industry.

In a recent development, Apple has accused OpenAI of actively destroying evidence related to the case. The tech giant claims that Liu used a confidential Apple schematic in his work at OpenAI. OpenAI has responded by filing a motion to dismiss the case, asserting that any access Liu had to Apple’s files was legitimate and characterizing the interactions as routine.

As the case unfolds, Apple has emphasized its substantial investment in hardware innovation, reportedly amounting to hundreds of billions of dollars over the years. The lawsuit highlights the ongoing talent wars in Silicon Valley, where over 400 former Apple employees are currently employed at OpenAI, raising concerns about the transfer of sensitive information between the two companies.