Apple Sues OpenAI Over Alleged Trade Secret Theft
14 Jul 2026
Apple has filed a 41-page lawsuit against OpenAI alleging a coordinated effort by former Apple employees to steal confidential documents, spy on hardware prototypes, and mislead a trusted manufacturing partner — a dispute that lands just as OpenAI reportedly prepares to launch its first AI hardware device next year.
What Apple Alleges
According to the complaint, the case centers on several former Apple employees who moved to OpenAI, allegedly carrying sensitive information with them:
- Unauthorized cloud access: Apple claims former employee Chang Liu — an eight-year veteran of Apple's iPhone systems electrical engineering team — kept an Apple-owned computer and used an authentication vulnerability to access Apple's confidential cloud storage weeks after leaving the company.
- Document downloads: Apple alleges Liu downloaded dozens of confidential files, including technical specifications, unreleased product details, and engineering presentations.
- Hardware "show and tell": Apple claims OpenAI asked job interviewees to bring hardware components and product samples from their Apple work into interview sessions.
- Coached offboarding evasion: Apple alleges OpenAI coached departing Apple employees on how to bypass security measures and avoid standard offboarding protocols.
- Manufacturing partner deception: Apple alleges OpenAI used confidential information to approach a trusted manufacturing partner, misleading them into believing OpenAI had Apple's permission to use a proprietary metal-finishing technique.
One alleged exchange cited in the complaint shows Liu messaging former Apple employee Yu-Ting "Alyssa" Peng, who joined OpenAI in April 2026: "LOL, I found out I can access the [network storage], so funny." Peng reportedly replied, "I'm ready."
The People at the Center
The lawsuit traces back to 2024, when Tang Tan — a 24-year Apple veteran and former VP of Apple Watch — left to join Jony Ive's hardware startup, io. OpenAI later acquired io and made Tan its chief hardware officer. Liu joined OpenAI in January 2026, followed by Peng in April 2026.
OpenAI spokesperson Drew Pusateri denied the allegations, stating the company has "no interest in other companies' trade secrets" and is focused on "building innovative technology."
What's Missing
The report notes several open questions: the exact filing date of the lawsuit isn't specified, nor are the legal remedies or damages Apple is seeking. Neither Liu nor Peng has individually responded to the allegations, and the identity of the affected manufacturing partner — along with the specific metal-finishing technique in question — has not been disclosed. It's also unclear whether any court has yet ruled on or responded to Apple's claims.
Why Founders Should Care
For early-stage founders, especially those building in hardware or AI hardware, this dispute is likely to serve as a cautionary signal rather than a settled precedent — no ruling has been issued yet. Still, several risk patterns are worth watching:
- Hiring former employees from competitors may carry elevated legal and reputational risk if a startup lacks clear safeguards around what new hires bring with them.
- Companies that skip rigorous offboarding audits could plausibly face liability exposure if departing employees retain access to former employers' systems.
- Founders engaging manufacturing partners on proprietary techniques may want to formalize NDAs and access controls more explicitly, given how quickly trust can be alleged to have been misused.
- The case may foreshadow growing legal scrutiny of talent poaching in competitive AI and hardware races, suggesting founders should treat hiring diligence as a legal risk-management function, not just an HR one.
Bigger Picture
The dispute could also create opportunity: heightened public attention on trade-secret protection may spur demand for better offboarding tools, access-control systems, and IP-protection practices — areas startups serving enterprise and hardware clients may want to watch closely.