Apple vs. OpenAI: Inside the Explosive Trade Secrets Lawsuit

• Mass data downloads. Chang Liu allegedly discovered he could access Apple's internal network storage after leaving, messaging an Apple employee "LOL, I found out I can access the [network storage], so funny." The employee replied "I'm ready." Liu then downloaded thousands of files containing unreleased product designs, schematics, and manufacturing methods .
• Job candidates asked to bring Apple parts. Apple alleges OpenAI encouraged prospective hires to bring actual Apple prototypes and components to interviews and to disclose details about unreleased products and manufacturing processes .
• Supplier poaching using proprietary data. Apple claims OpenAI approached Apple's manufacturing partners using confidential supply-chain information obtained from former employees .
• "Normalized and exemplified by leadership." The complaint asserts this misconduct was not rogue behavior but was condoned and encouraged from the top of OpenAI — Apple says the misconduct is "rotten to its core" and that OpenAI's hardware business "rests on the shakiest of foundations" .
• "Tip of the iceberg." Apple states in the filing that discovery will reveal misconduct "on a scale many times greater than the several instances described below" .

OpenAI's Response

OpenAI's Director of Strategic Communications, Drew Pusateri, posted the company's official statement on X:

"We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."

OpenAI has not issued a more detailed legal response publicly. The company has disputed similar allegations in a separate trade secret lawsuit filed by hardware startup iyO in March 2026 .

Context: OpenAI's Hardware Ambitions

• Planned device unveiling in H2 2026. OpenAI's Chief Global Affairs Officer Chris Lehane confirmed at Axios House in Davos in January 2026 that OpenAI is "on track" to introduce its first physical device in the second half of 2026 . Bloomberg reported after the lawsuit was filed that OpenAI's hardware timeline remains unchanged — a product unveiling is still planned for late 2026, with a release in 2027 .
• Over 400 former Apple employees. Apple has lost significant talent to OpenAI as it builds its hardware division. Multiple reports note that OpenAI now employs more than 400 former Apple employees, including Tang Tan and numerous other engineers and designers .
• Jony Ive's involvement. The hardware effort is led by OpenAI's subsidiary io Products, which was formed after OpenAI acquired the design firm of Jony Ive, Apple's former design chief . io Products is also facing a separate preliminary injunction in a trademark and trade secret case brought by hardware startup iyO .
• Device speculation. The first device is rumored to be a screen-free, AI-powered, voice-operated companion device — potentially an ear-worn form factor — designed to shift AI interaction off smartphone screens .

Legal Remedies Apple Is Seeking

Apple is seeking the following through the lawsuit:

• Damages for trade secret misappropriation and breach of contract .
• An injunction barring OpenAI, io Products, Tang Tan, and Chang Liu from possessing, using, or further disclosing any of Apple's alleged trade secrets .
• A court order requiring the return or destruction of all confidential materials allegedly taken .
• The suit also suggests Apple may seek to block or delay OpenAI's hardware product launch if it can prove the device was built using stolen secrets .

Bottom Line

This is one of the most aggressive legal actions Apple has ever taken against a former partner. The lawsuit paints a picture of systematic corporate espionage, and while OpenAI denies the allegations, the suit — along with a second trade secret case from iyO — poses a direct threat to OpenAI's plans to ship its first consumer hardware device in late 2026.