Apple’s lawsuit against OpenAI alleges that departing employees took proprietary hardware information, engineering files, and confidential documents with them to the AI company. The suit names two former Apple workers and details a pattern of alleged misconduct that has already begun constraining OpenAI’s recruitment efforts and hardware timeline.
Apple’s complaint names two employees, Chang Liu, a senior system electrical engineer who worked at Apple for eight years before joining OpenAI in January 2026, and Tang Tan, Apple’s former VP of product design for iPhone and Apple Watch, who departed in February 2024.
Liu allegedly exploited a security bug to download confidential engineering files after his departure and failed to return an Apple-issued laptop. Apple claims he obtained “a compilation of technical files with over a thousand pages” detailing work he performed at the company.
Tan allegedly possessed and distributed an internal Apple “Need to Know” document to new OpenAI hires who had not yet given notice to Apple. The document detailed Apple’s departure security protocols, potentially exposing the company’s ability to detect and prevent similar breaches.
OpenAI’s Response Appears Evasive
OpenAI issued a statement denying the allegations. As reported by Bloomberg, the company said:
“While we take these allegations seriously, we’re not aware of any evidence that this complaint has merit,” OpenAI said in the statement. “We believe in fair competition and allowing people the freedom to work wherever they choose, and we’re focused on building innovative technology that empowers people everywhere.”
The statement appeared evasive as OpenAI has yet to address the substance of Apple’s claims in any detail or explain what steps, if any, it has taken to investigate internally. The company did not contest Apple’s characterization of the documents as trade secrets, challenge the alleged actions of Liu or Tan, or dispute how its engineers obtained the information.
According to reporting from Bloomberg’, the lawsuit is already constraining OpenAI’s ability to recruit from Apple and creating friction in its hardware work long before any court ruling. The company maintains it remains on track to announce its first product this year and release it in 2027, but the litigation is doing damage now.
The scale of Apple talent at OpenAI creates obvious opportunities for knowledge transfer, whether intentional or casual. Over 400 former Apple employees now work at the AI company, a figure that reflects both OpenAI’s success in recruiting and Apple’s significant vulnerability. The lawsuit ranks among Apple’s biggest internal concerns in recent months, sitting alongside tariff exposure and memory chip shortages in terms of executive focus.
OpenAI acquired Jony Ive’s startup io as part of a $6.5 billion deal last year, bringing in more than 50 engineers and other employees. Ive, Apple’s former chief design officer, is leading OpenAI’s hardware efforts. However, OpenAI’s hardware project has already faced delays before this lawsuit added further friction.
This is OpenAI’s second major legal battle over hardware ambitions in little more than a year; startup iyO brought a separate lawsuit that began with branding concerns but was later amended to include trade secret misappropriation allegations. Apple’s broader hardware war with OpenAI reflects deeper tensions over talent and proprietary design.
