# Apple sues OpenAI over alleged hardware trade‑secret theft, omits

**Published:** 2026-07-19T19:02:56.102Z  
**Topic:** OpenAI  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/76ec2738-819c-4fc5-997d-86f5674524d1

Apple lawsuit accuses OpenAI of stealing hardware trade secrets from former staff, but does not name Jony Ive’s startup io, highlighting a $6.5 bn acquisition

Apple has filed a 41‑page complaint accusing OpenAI of stealing hardware trade secrets through three former Apple engineers, while deliberately leaving Jony Ive’s hardware startup io unnamed in the suit [1][2].

| At a glance | |
|---|---|
| Plaintiff | Apple Inc. |
| Defendant | OpenAI (and its subsidiaries) |
| Alleged trade‑secret theft | Dozens of confidential hardware files, supplier data, and prototype details |
| Notable omission | Jony Ive’s io Products, acquired for $6.4‑$6.5 bn, is not named |

## Allegations against former Apple staff  
The complaint centers on three ex‑Apple employees. Chang Liu, who left Apple in January after eight years, allegedly kept an Apple‑issued laptop, exploited an “authentication bug” to access shared network folders, and downloaded dozens of confidential files covering unreleased product specs and engineering presentations [2]. Yu‑Ting “Alyssa” Peng is accused of relaying those files to Liu while both were at OpenAI, facilitating the use of Apple’s proprietary data in OpenAI’s hardware development [1]. Tang Yew Tan, a 24‑year Apple veteran who became OpenAI’s chief hardware officer after OpenAI’s $6.5 bn purchase of Ive’s io, is alleged to have asked interview candidates to bring Apple components—batteries, SIP modules, and logic‑board samples—for “show‑and‑tell” sessions and to use internal project names during interviews [1][2].

## Why the lawsuit omits Jony Ive’s startup  
OpenAI’s acquisition of io Products, the hardware venture founded by former Apple design chief Jony Ive, was valued at $6.4‑$6.5 bn [2]. Despite the acquisition’s size and the fact that the alleged hardware theft is tied to OpenAI’s first AI device slated for next year, the complaint does not name io or Ive directly. Legal analysts note that omitting a newly acquired subsidiary can limit exposure to additional liabilities or complicate the case’s focus on alleged employee misconduct rather than corporate ownership [1].

## Market and competitive implications  
Apple’s claim that OpenAI used its metal‑finishing technique and supplier relationships to accelerate its own hardware roadmap underscores a broader tension as AI firms race to build custom chips. OpenAI’s hardware division, which has hired over 400 former Apple staff, is positioned to compete directly with Apple’s own silicon efforts. The lawsuit, filed in the U.S. District Court for the Northern District of California, arrives after Apple shifted from OpenAI’s ChatGPT to Google’s Gemini for its Siri AI, suggesting a cooling of the partnership and heightened scrutiny of talent poaching [2].

## What to watch
- **OpenAI’s response** – Any filing or public statement beyond the brief denial that it has “no interest in other companies’ trade secrets” could signal the firm’s legal strategy.  
- **Further litigation** – Whether Apple expands the suit to include io Products or other OpenAI subsidiaries remains uncertain.  
- **Hardware rollout timeline** – The first OpenAI AI hardware device, expected next year, may be delayed if the case hampers access to critical design knowledge.

The case highlights the growing clash between tech giants over proprietary hardware expertise, and it raises the question of how AI firms will secure the talent and IP needed to compete with entrenched chipmakers like Apple.

## Sources
1. The Verge — [The 6 wildest claims in Apple’s lawsuit against OpenAI](https://www.theverge.com/tech/964843/apple-openai-lawsuit-wildest-claims)
2. Decrypt — [Apple Sues OpenAI, Claims Former Employees Stole Trade Secrets](https://decrypt.co/373339/apple-sues-openai-claims-former-employees-stole-trade-secrets)

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Cite as: TrendWatcher, "Apple sues OpenAI over alleged hardware trade‑secret theft, omits", https://www.trendwatcher.in/article/76ec2738-819c-4fc5-997d-86f5674524d1