Apple sues OpenAI over alleged trade secret theft tied to poached employees

Apple has filed a federal lawsuit against OpenAI in California, accusing the AI company of systematically stealing trade secrets about unreleased products through poached employees. The complaint alleges OpenAI pushed Apple employees to share information, components, drawings, specifications, and other confidential materials. OpenAI denied the allegations, saying it has no interest in others’ trade secrets and is focused on building its own technology.

The lawsuit says more than 400 former Apple employees now work at OpenAI. Apple’s claims center partly on Tang Tan, OpenAI’s Chief Hardware Officer, who previously led iPhone, Apple Watch, and AirPods development as Apple’s VP of Product Design. The complaint also names former iPhone hardware engineer Chang Liu and alleges OpenAI counseled departing staff on how to keep access to confidential data during notice periods.

The case lands as OpenAI is expanding its hardware ambitions. The lawsuit connects the alleged trade secret theft to OpenAI’s nascent hardware business, including work involving former Apple design talent and io Products, the AI device startup OpenAI bought last year for $6.5 billion. Apple is seeking a jury trial, an end to the alleged practices, destruction of proprietary materials, and product redesigns that contain no Apple technology.

OpenAI’s first hardware product is not expected to ship before late February 2027, and the article notes that its final form remains unclear. Reported concepts include a pen-like device with a camera and microphone, smart headsets, a screenless speaker, and possibly a phone-like mass-market device. The lawsuit could now become a major test of how aggressively AI companies can recruit talent while building products in markets dominated by former employers.