Apple Sues OpenAI Over Stolen Hardware Secrets
Get the Tech newsletter
Daily tech — startups, AI labs, chips, the launches that shape the next decade. Free.
- Apple filed a 41-page complaint accusing OpenAI of stealing confidential documents, spying on hardware prototypes, and tricking a trusted partner into revealing a proprietary multi-step metal-finishing technique.
- The suit targets Tang Tan, a 24-year Apple veteran and former Apple Watch VP now serving as OpenAI's chief hardware officer, plus former iPhone systems electrical engineer Chang Liu (joined OpenAI January 2026) and Yu-Ting Peng (joined OpenAI April 2026).
- Liu allegedly kept an Apple-owned computer after announcing his departure, exploited an authentication vulnerability in Apple's cloud-based network storage, and downloaded dozens of confidential files including technical specifications for unreleased products — reportedly telling Peng 'LOL, I found out I can access [the network storage], so funny.'
- Peng allegedly continued funneling confidential project details, engineering information, and vendor relationships to Liu at OpenAI after his departure, keeping him informed as he worked on competing hardware.
- Tan allegedly asked OpenAI job candidates to bring Apple components — including 'Batteries,' 'SIP' (Systems-in-Package), 'mlb' (main logic boards), and 'shields' — for 'show and tell sessions' and prepare 'Technical Deep Dive' presentations containing confidential information.
- OpenAI allegedly coached departing Apple workers on bypassing exit security, advising them not to disclose their new employer, not to 'sign anything at the exit interview,' and how to avoid the 'dreaded walk out' that triggers immediate removal.
- OpenAI spokesperson Drew Pusateri denied the allegations, stating: 'We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere.'
Why it matters: Apple's metal-finishing allegation expands the case beyond employee misbehavior into claims that OpenAI misled Apple's manufacturing suppliers directly, using confidential information to extract proprietary techniques from partners Apple had entrusted with them. With Tan leading OpenAI's hardware push and its first AI device expected next year, Apple's 41-page filing targets the talent pipeline and supply-chain relationships underpinning OpenAI's entire hardware effort.
