source: techcrunch ai: apple sues openai over alleged trade secret theft
level: business
apple filed a lawsuit against openai on friday, accusing the ai company of trade secret theft and breach of contract. the complaint, filed in the u.s. district court for the northern district of california, claims that openai's senior leadership, including chief hardware officer tang tan, directed a pattern of theft from former apple employees. tan allegedly used apple's confidential project code names during recruiting, asked candidates to bring apple hardware components to interviews, coached departing employees on evading security procedures, and sought details about unannounced products.
the lawsuit also names chang liu, a former senior systems electrical engineer at apple, who allegedly failed to return an apple-issued laptop after joining openai in 2026. apple says liu used the computer to download confidential technical documents covering unannounced technologies, features, and products. liu is also accused of sharing apple's confidential information with other apple employees applying to openai, advising them on what to study before interviews. apple sent a letter to openai in february raising concerns but received no response.
apple claims the alleged misconduct is part of openai's strategy to extract confidential information for its own hardware development. the filing references a proprietary metal finishing technique used by openai after it allegedly misled a partner into believing it had apple's permission. apple is asking the court to bar openai from using or disclosing its trade secrets, return any confidential materials, and preserve evidence. the lawsuit comes amid rumors that openai is developing a smartphone relying on ai agents, potentially competing with the iphone.
why it matters: the case highlights risks of trade secret theft in ai hardware competition, affecting how companies protect intellectual property when employees move between tech firms.
source: techcrunch ai: apple sues openai over alleged trade secret theft