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Apple alleges OpenAI employee accessed trade secrets

Created at 31 Aug · 8:44 PM1 source↑ Market-relevant
IN SHORT

Apple has accused OpenAI of misappropriating trade secrets, alleging a former Apple engineer accessed confidential circuit schematics and used proprietary information to train an AI agent. The tech giant is seeking expedited discovery in its lawsuit against the AI firm.

Key Numbers

2former Apple employees named as defendants
2024year Tang Tan left Apple
2025year OpenAI acquired io Products
$6.5 billionreported acquisition price of io Products
2026year Liu allegedly trained AI agent
August 21date OpenAI provided MacBook
400former Apple employees now at OpenAI

Who's Involved

Apple
tech giant alleging trade secret misappropriation
OpenAI
AI company accused of using stolen trade secrets
Chang Liu
former Apple engineer accused of accessing and using trade secrets
Tang Tan
former Apple executive and VP of Product Design, now OpenAI's chief hardware officer
io Products
hardware startup acquired by OpenAI
U.S. federal court
venue for Apple's trade secret lawsuit
Drew Pusateri
Director of Strategic Communications at OpenAI
Apple alleges OpenAI employee accessed trade secrets

↳ Why This Matters

The lawsuit highlights the intense competition and legal scrutiny surrounding the development of artificial intelligence and consumer hardware, with significant implications for intellectual property protection and corporate espionage in the tech industry.

Key facts

  • Apple alleges a former Apple engineer, Chang Liu, accessed confidential circuit schematics.
  • Apple claims Liu used proprietary information to train an AI agent.
  • New evidence emerged from a MacBook provided by OpenAI to Apple.
  • Apple is seeking to expedite discovery in its trade secret lawsuit against OpenAI.
  • OpenAI denies the allegations, stating it focuses on building innovative technology.

Apple has filed a trade secret lawsuit against OpenAI, alleging that a former Apple engineer accessed confidential hardware information and used it to accelerate OpenAI's consumer hardware ambitions. The lawsuit, filed in U.S. federal court, names OpenAI, its acquired hardware startup io Products, former Apple executive Tang Tan, and former Apple engineer Chang Liu as defendants.

Apple claims that Liu, who worked at Apple for eight years before joining OpenAI, exploited a security vulnerability to access internal file repositories after his departure. According to the complaint, Liu downloaded dozens of confidential files, including engineering presentations, technical specifications, and information concerning unreleased products. Apple also alleges Liu instructed another Apple employee on how to copy confidential files and avoid detection before leaving for OpenAI.

Further allegations include that Tang Tan, Apple's former Vice President of Product Design, used Apple's internal project codenames while interviewing Apple employees and encouraged candidates to bring confidential hardware components to "show and tell" sessions. Apple claims OpenAI recruiters, including Tan, encouraged Apple employees interviewing for positions to bring confidential hardware components, prototypes, CAD files, and other proprietary materials to interviews.

Apple stated that new evidence came to light from a MacBook computer that OpenAI provided to Apple on August 21 as part of legal proceedings. The company is asking a U.S. federal court to expedite discovery proceedings in the trade secret case against OpenAI. OpenAI has sought to dismiss Apple's lawsuit, with a spokesperson stating the company has "no interest in other companies' trade secrets" and remains focused on building innovative technology.

Apple alleges the behavior represents "the tip of the iceberg," claiming it has identified a broader pattern involving former employees who later joined OpenAI. The lawsuit notes that more than 400 former Apple employees now work at OpenAI, though only Tan and Liu are individually named as defendants.

Frequently asked questions

Apple accuses OpenAI and two former Apple employees of misappropriating confidential hardware information to accelerate OpenAI's consumer hardware ambitions.

The defendants are OpenAI, io Products, former Apple executive Tang Tan, and former Apple engineer Chang Liu.

Apple alleges theft of confidential information related to unreleased products, engineering processes, manufacturing techniques, proprietary hardware development, and a power converter circuit schematic.

OpenAI denies the allegations, stating they have no interest in other companies' trade secrets and are focused on building innovative technology.

What Happens Next

01Apple is seeking expedited discovery proceedings in the trade secret case.
02The court will rule on Apple's request to expedite discovery.

How It Developed

Apple filed a trade secret lawsuit against OpenAI, io Products, Tang Tan, and Chang Liu.
Apple alleges former employees downloaded confidential engineering documents and proprietary project files.
Apple claims former employees bypassed security procedures and exploited vulnerabilities to access data.
Apple alleges OpenAI recruiters encouraged employees to bring confidential materials to interviews.
Apple claims Tan used internal project codenames and requested hardware components for 'show and tell' sessions.
Apple alleges Liu accessed Apple systems after his departure, downloading confidential files.
Apple alleges Liu instructed another employee on how to copy confidential files before leaving for OpenAI.
Apple raised concerns with OpenAI in February, but claims it received no response.

Sources

T1
Apple alleges OpenAI employee accessed circuit plans after joining startupReuters
T2
Apple Alleges OpenAI, Ex-Employees Took Trade Secretslaw360.com
T2
Apple Sues OpenAI, Alleging Former Employees Stole Confidential ...petapixel.com
T2
Apple is suing OpenAI, alleging former employees stole trade ... - TechSpottechspot.com

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