Apple Sues OpenAI for Trade Secret Theft, Alleging Ex-Engineer Exploited Bug to Access Confidential Data

Jul 13, 2026

Apple has filed a major trade secret lawsuit against OpenAI, alleging a coordinated corporate espionage campaign to steal proprietary hardware designs. The suit centers on former Apple employees Tang Yew Tan and Chang Liu, who allegedly exploited an authentication bug and used aggressive interview tactics to funnel confidential iPhone and Apple Watch data to OpenAI. OpenAI denies the allegations as meritless. The legal battle intensifies a growing rivalry as OpenAI develops its own physical AI hardware to compete with Apple.

Apple trade secret theft lawsuit

▪Apple's lawsuit accuses OpenAI of a coordinated corporate espionage campaign to steal confidential hardware information to launch competing AI-powered devices.
▪Apple is seeking a preliminary injunction to block the defendants from using its trade secrets, alongside monetary damages.
▪An OpenAI spokesperson stated the company has no interest in other companies' trade secrets and is not aware of any evidence that Apple's complaint has merit.
▪Apple filed a 41-page trade secret lawsuit against OpenAI, io, and two former employees on July 10, 2026, in the U.S. District Court for the Northern District of California.

Chang Liu confidential data access

▪Former Apple senior system electrical engineer Chang Liu joined OpenAI in January 2026 and allegedly failed to return his Apple-issued work laptop.
▪On February 9, 2026, Chang Liu discovered and exploited a rare, unpatched Apple authentication bug to access Apple's shared network folders for several weeks.
▪Chang Liu collaborated with Apple employee Yu-Ting "Alyssa" Peng, who allegedly shared trade secrets and copied files before joining OpenAI in May 2026.
▪Chang Liu surreptitiously downloaded dozens of confidential Apple hardware files, including a presentation on complex circuit boards and unreleased product data.

Tang Yew Tan recruitment tactics

▪Apple alleges Tang Yew Tan mined current Apple employees for proprietary supplier information, CAD designs, and prototypes during OpenAI job interviews.
▪Tang Yew Tan, Apple's former vice president of product design for the iPhone and Apple Watch, joined OpenAI as Chief Hardware Officer in July 2025.
▪Tang Yew Tan allegedly coached recruits to delay notifying Apple of their departures and used a stolen security document to help them evade exit screening.

OpenAI AI hardware device development

▪OpenAI Chief Global Affairs Officer Chris Lehane stated in January 2026 that the company is on track to unveil its first device later in 2026.
▪OpenAI acquired the AI hardware startup io, co-founded by Tang Yew Tan and former Apple design chief Jony Ive, in July 2025.
▪OpenAI is developing its own AI-powered hardware device, which reports suggest is a mobile, screen-free smart speaker built as an AI companion.

Apple-OpenAI partnership deterioration

▪The Apple-OpenAI partnership strained after Apple selected Google Gemini as its primary AI partner in January 2026, amid reports of OpenAI considering legal action.
▪Apple and OpenAI partnered in late 2024 to integrate ChatGPT into Apple's Siri voice assistant.

OpenAI legal challenges

▪A California federal jury unanimously rejected a lawsuit against OpenAI by SpaceX CEO Elon Musk over the company's shift from its founding mission.
▪OpenAI faces a safety lawsuit from Florida filed in June 2026, and an active copyright infringement lawsuit from The New York Times.