Apple Accuses OpenAI of Stealing Trade Secrets in Hardware Race

Apple has filed a lawsuit against OpenAI, accusing the AI startup of stealing trade secrets. The suit claims OpenAI and its hardware chief ran a campaign to get confidential information about Apple’s upcoming products.

The lawsuit centers on Chang Liu, a former Apple employee who left for OpenAI in January. Apple says Liu exploited a security bug to access Apple’s internal systems after his departure. He allegedly downloaded dozens of confidential files, including unreleased product details, technical specs, and manufacturing plans.

Apple also accuses Liu of encouraging another Apple engineer to study secret materials before interviews. He reportedly advised how to avoid detection while copying files. This points to a wider pattern, not just isolated misconduct.

Recruitment as an Intelligence-Gathering Tool

Apple claims OpenAI’s hiring process was used to get trade secrets. The company says OpenAI asked Apple job candidates to bring physical components for “show and tell” sessions. These sessions allegedly included questions about confidential Apple projects.

Tang Tan, OpenAI’s Chief Hardware Officer and a former Apple vice president, reportedly led these interviews. Apple’s complaint states Tan asked candidates about secret Apple projects and used the information to boost OpenAI’s hardware business.

The lawsuit calls OpenAI’s hardware business “rotten to its core” because it is built on stolen secrets. Apple says this misconduct happens at every level, from technical staff to leadership. The complaint warns this is just the “tip of the iceberg.”

Apple’s Response and OpenAI’s Denial

Apple says it raised concerns with OpenAI earlier this year and asked for an investigation. But the company received no response. Now Apple seeks damages and court orders to prevent OpenAI and individuals from using its trade secrets.

OpenAI denies the claims. A spokesperson said the company has “no interest in other companies’ trade secrets” and focuses on building innovative technology. Yet Apple insists OpenAI exploited a security bug and misused its recruitment process to gain confidential information.

The case highlights the fierce competition over AI hardware. OpenAI has been hiring former Apple executives and engineers as it builds its own hardware team. Apple’s frustration shows how critical hardware knowledge is in the AI race.

Joe Wilkins, who covered the story, said, “If [people] care about the notion that AI has to be handled in a responsible manner… this is a case that should matter to you.” This lawsuit could shape how AI companies protect their secrets and work responsibly.

Artur Davis, commenting on a related whistleblower, noted, “She is risking being attacked professionally. She is risking her reputation, and for her to do that tells you something about her level of confidence that she’s right.” This adds weight to Apple’s claims.

As the battle unfolds, the tech world watches closely. The outcome could affect how AI startups grow their hardware teams and how companies guard their innovations in a fast-moving field.

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