South Minneapolis News

collapse
Home / Daily News Analysis / OpenAI responds to Apple’s trade secret theft lawsuit

OpenAI responds to Apple’s trade secret theft lawsuit

Jul 12, 2026  Twila Rosenbaum  3 views
OpenAI responds to Apple’s trade secret theft lawsuit

OpenAI has formally responded to a lawsuit filed by Apple, denying all allegations of trade secret misappropriation. The legal action, lodged earlier today in a federal court, accuses two former Apple employees—Chang Liu and Tang Tan—along with OpenAI and its hardware partner io Products of stealing confidential hardware information to advance OpenAI's consumer device efforts.

In a statement posted on social media, OpenAI's Director of Strategic Communications, Drew Pusateri, said, "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." The brief remark is the company's first public comment since Apple's complaint became public.

Details of Apple's Lawsuit

Apple's legal filing paints a detailed picture of what it calls a "pattern of theft of Apple's trade secrets by OpenAI employees who were formerly at Apple." The company alleges that Chang Liu and Tang Tan, both of whom previously held senior roles at Apple, accessed proprietary systems and confidential files without authorization. The complaint further claims that the defendants encouraged job candidates to bring Apple prototypes and components to interviews, disclosed details about unreleased products and manufacturing processes, and helped OpenAI approach Apple suppliers using proprietary information.

Apple's lawsuit seeks injunctive relief and damages, arguing that OpenAI's hardware ambitions—particularly the development of a consumer device in collaboration with former Apple design chief Jony Ive—have been built upon information improperly obtained from Apple. The complaint includes exhibits detailing alleged communications and actions spanning several months.

Background: The OpenAI-io Products Partnership

The dispute centers on OpenAI's venture into consumer hardware through a partnership with io Products, a company founded by Jony Ive after his departure from Apple. The collaboration aims to create a new category of personal devices that leverage OpenAI's artificial intelligence capabilities. However, this is not the first time the project has faced legal challenges over trade secrets.

Earlier this year, hardware startup iyO sued OpenAI and io Products, initially over branding issues and later amended the complaint to add allegations of trade secret misappropriation. That lawsuit also named Tang Tan as a defendant, accusing him of receiving confidential files from a former iyO engineer. OpenAI has consistently denied those allegations as well.

The simultaneous legal battles underscore the intense competition and sensitivity surrounding intellectual property in the consumer tech sector. Apple has long guarded its hardware development processes, and the departure of key executives like Jony Ive and Tang Tan—both of whom have deep knowledge of Apple's internal operations—has raised concerns about the protection of proprietary information.

Key Figures: Chang Liu and Tang Tan

Chang Liu, a former Apple engineer with expertise in hardware design, left the company in early 2025 to join OpenAI. According to the lawsuit, Liu allegedly downloaded sensitive files related to future Apple products before his departure and later shared them with OpenAI colleagues. Tang Tan, previously a high-ranking Apple executive responsible for hardware engineering, left Apple in late 2024 and joined io Products as a senior advisor. Apple alleges that Tan used his knowledge and connections to facilitate the misappropriation of trade secrets.

Neither Liu nor Tan have publicly commented on the allegations. Legal experts note that trade secret cases often hinge on proving that the defendant had access to confidential information and used it in a way that caused harm. Apple's detailed claims, if proven, could result in significant financial penalties and injunctions against OpenAI's hardware projects.

OpenAI's Defense and Broader Implications

OpenAI's brief denial suggests the company will vigorously contest the allegations. The company has invested heavily in its hardware initiative, which is seen as a strategic move to integrate AI into everyday devices beyond software services. A prolonged legal battle could delay product launches and tarnish the partnership's reputation.

Legal analysts point out that OpenAI's response mirrors its stance in the iyO lawsuit—denying any wrongdoing and emphasizing a lack of interest in others' secrets. However, the cumulative weight of two separate trade secret lawsuits involving the same hardware project may intensify scrutiny from regulators and investors.

Apple's lawsuit also highlights the broader tension between major tech companies as they compete for top talent and groundbreaking innovations. Non-compete clauses and trade secret protections are becoming increasingly litigated in an era of rapid employee movement between rivals. The outcome of this case could set precedents for how companies protect confidential information when senior employees depart to competitors or startups.

In court filings, Apple requested that the judge issue a temporary restraining order to prevent further use of its alleged trade secrets by OpenAI. A hearing is expected within the next two weeks. Meanwhile, OpenAI continues to hire hardware engineers and expand its consumer device team, signaling confidence that the legal challenges will not derail its plans.

The case adds to OpenAI's growing list of legal entanglements, including ongoing antitrust inquiries and intellectual property disputes with content creators. As artificial intelligence becomes more deeply embedded in consumer products, the boundaries between legitimate innovation and misappropriation of corporate secrets will likely be tested further.


Source: 9to5Mac News


Share:

Your experience on this site will be improved by allowing cookies Cookie Policy