In a massive legal escalation that marks the breakdown of a prominent Silicon Valley partnership, Apple has filed a 41-page federal lawsuit against ChatGPT creator OpenAI in the U.S. District Court for the Northern District of California.
The suit alleges that OpenAI orchestrated a systematic and coordinated corporate campaign to extract Apple's most sensitive hardware designs, supply chain secrets, and manufacturing methodologies to jumpstart OpenAI's unreleased physical AI consumer devices.
"At every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information."
— Apple Legal Complaint
Two Insiders at the Heart of the Claims
The filing heavily focuses on two former Apple employees who now work inside OpenAI's hardware program:
- Tang Yew Tan: A 24-year Apple veteran and the former Vice President of Product Design for the iPhone and Apple Watch. He is currently OpenAI’s Chief Hardware Officer. Apple claims Tan actively used internal "Need to Know" security documents and project codenames during job interviews to probe Apple staff. He allegedly went as far as directing current Apple candidates to bring actual prototypes and CAD drawings to "show and tell" interview sessions.
- Chang Liu: A senior systems electrical engineer who spent eight years at Apple. Apple alleges that Liu kept a company-issued laptop after leaving for OpenAI in early 2026 and later exploited an authentication flaw to tap into Apple’s secure network storage. According to logs, Liu allegedly sent a message to a former coworker stating, "LOL, I found out I can access the [network storage], so funny," before copying over 1,000 pages of advanced circuit board schematics.
The Race for AI Hardware
The sudden legal warfare comes at a critical time. In 2024, the companies announced a landmark deal to put ChatGPT inside Siri. However, behind the scenes, OpenAI has aggressively expanded into building physical AI electronics—bolstered by its multi-billion-dollar acquisition of io Products, a studio led by former Apple design icon Jony Ive.
Apple contends that OpenAI sought illegal shortcuts to secure a new consumer hardware revenue stream ahead of its highly anticipated Wall Street IPO valuation goals. Apple is currently seeking a permanent injunction to prevent OpenAI from using any of the data, alongside unspecified punitive damages.
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