Apple has filed a lawsuit against OpenAI, accusing the AI company of using stolen hardware secrets to accelerate its own product development. The complaint, submitted in federal court, alleges a pattern of trade secret misappropriation by OpenAI employees who previously worked at Apple. The legal action also targets IO Products, the hardware startup founded by former Apple design chief Jony Ive that OpenAI acquired in 2025, along with two specific individuals: Tang Tan, OpenAI's chief hardware officer, and Chang Liu, who joined OpenAI from Apple in January.

What You Need to Know

Apple's lawsuit centers on confidential hardware designs related to future products. The company claims former employees used their knowledge to help OpenAI build competing hardware. Tang Tan and Chang Liu are central figures, and IO Products is named because OpenAI integrated that startup after acquisition. The case could reshape how tech companies handle trade secrets when talent moves between rivals.

Core Allegations in the Complaint

In its filing, Apple asserts that OpenAI employees who previously worked at Apple systematically took proprietary information. An Apple spokesperson stated that the company's "teams are constantly developing breakthrough technologies" and that protecting those innovations requires legal action. The complaint specifically highlights the roles of Tang Tan and Chang Liu in allegedly transferring Apple's hardware blueprints to OpenAI's hardware division.

  • Tang Tan: OpenAI's chief hardware officer, accused of leading the effort to replicate Apple's hardware designs.
  • Chang Liu: Joined OpenAI in January, allegedly brought detailed schematics from Apple's advanced projects.
  • IO Products: The Jony Ive-founded startup acquired by OpenAI, which Apple says became a vehicle for the stolen secrets.

How Talent Movement Fueled the Conflict

The lawsuit is the latest example of rising tensions in Silicon Valley over employee mobility and intellectual property. Apple and OpenAI have already been locked in a broader rivalry over AI assistants and hardware integration. The departure of key hardware engineers from Apple to OpenAI, particularly after OpenAI's acquisition of IO Products, created a channel for proprietary knowledge to flow between the companies. Apple argues that this was not just normal hiring but a coordinated effort to bypass its security protocols.

Why This Matters

This case could set a precedent for how courts treat trade secret theft in the AI hardware space. If Apple wins, it may force OpenAI to halt certain hardware projects and surrender any products built using the disputed designs. For Apple, the lawsuit protects its multibillion-dollar investment in next-generation hardware. For OpenAI, a loss could delay its ambition to produce standalone AI devices. The outcome will also send a signal to other tech companies about the risks of hiring from direct competitors without rigorous IP safeguards.