OpenAI has issued a formal statement in response to a lawsuit filed by Apple earlier today, which accuses the artificial intelligence company of trade secret theft and breach of contract. The lawsuit, which names former Apple employees Chang Liu and Tang Tan, as well as OpenAI and the hardware startup io Products, alleges a coordinated effort to steal confidential hardware information and use it to accelerate OpenAI’s nascent consumer hardware initiatives.
In its legal filing, Apple detailed what it characterized as “a pattern of theft of Apple’s trade secrets by OpenAI employees who were formerly at Apple,” asserting that such misconduct is normalized and exemplified by leadership. According to the complaint, the defendants accessed Apple’s internal systems and confidential files without authorization, encouraged job candidates to bring Apple prototypes and components to interviews, disclosed details about unreleased products and manufacturing processes, and helped OpenAI approach Apple suppliers using proprietary information. The company’s filing is extensive and includes specific instances of alleged wrongdoing, painting a picture of systematic intellectual property theft.
OpenAI’s Director of Strategic Communications, Drew Pusateri, took to social media to respond on behalf of the company. In a post on X, Pusateri stated, “Our statement in response to this suit: We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere.” The statement is brief but firm, rejecting the core premise of Apple’s claims. This response mirrors OpenAI’s earlier denials in a separate trade secret dispute involving the same hardware project.
The lawsuit is the latest escalation in a broader legal battle surrounding OpenAI’s hardware ambitions, which have been pursued in partnership with io Products, a company founded by former Apple design chief Jony Ive. This partnership was announced with much fanfare, but it has quickly become entangled in legal challenges. Earlier this year, a hardware startup named iyO sued OpenAI and io Products over branding issues, alleging that the companies had copied its name and identity. That lawsuit was later amended in March 2026 to include allegations of trade secret misappropriation, specifically naming Tang Tan as a defendant. The iyO suit alleged that a former iyO engineer downloaded confidential files and provided them to Tan, who had previously worked at Apple as a vice president of hardware engineering. OpenAI has also disputed those allegations.
The involvement of Tang Tan, a former high-ranking Apple executive, adds a significant layer of complexity to the case. Tan left Apple in 2024 to join io Products, where he is reportedly overseeing hardware development. Apple’s lawsuit claims that Tan used his knowledge of Apple’s supply chain and manufacturing processes to help OpenAI gain an unfair advantage. The company also alleges that Liu, another former employee, downloaded sensitive documents related to Apple’s unreleased hardware projects before leaving to join OpenAI. These documents, according to Apple, included details about prototype designs, manufacturing techniques, and supplier agreements.
Legal experts note that trade secret lawsuits are notoriously difficult to prove, as they require demonstrating that the information in question was indeed secret, that reasonable measures were taken to protect it, and that the defendant misappropriated it. Apple’s complaint appears to provide substantial evidence, including internal communications and access logs, to support its claims. However, OpenAI’s denial suggests the company is prepared to mount a vigorous defense. The outcome could have significant implications for both companies. For Apple, protecting its intellectual property is crucial to maintaining its competitive edge in the hardware market. For OpenAI, the case could delay or derail its consumer hardware ambitions, which are seen as a key part of its long-term strategy to integrate AI into everyday devices.
The dispute also highlights the increasingly competitive and litigious landscape of the tech industry, particularly in the realm of AI and hardware. As companies race to develop new products, the lines between collaboration and competition often blur. Apple has a long history of aggressively protecting its trade secrets and has pursued legal action against former employees and competitors in the past. This case is notable for its direct targeting of OpenAI, a company that has itself been embroiled in intellectual property controversies, including allegations from media organizations and authors over the use of copyrighted content to train its AI models.
Industry observers are watching the case closely, as it could set precedents regarding the mobility of talent between major tech firms. In Silicon Valley, it is common for engineers and executives to move between companies, but trade secret agreements are meant to prevent the transfer of proprietary knowledge. Apple’s lawsuit argues that OpenAI actively encouraged such transfers, making the company complicit in the theft. If the court agrees, it could lead to stricter enforcement of non-disclosure agreements and more careful vetting of new hires at AI startups.
Beyond the legal arguments, the case has attracted attention because of the high-profile individuals involved. Jony Ive’s involvement with io Products has generated significant interest, and the partnership with OpenAI is seen as a potential game-changer in consumer electronics. However, the legal troubles threaten to overshadow the technological promise. Ive’s design philosophy and OpenAI’s AI capabilities could theoretically produce revolutionary devices, but the allegations of trade secret theft raise questions about the ethics of the collaboration.
The amended lawsuit from iyO also remains active, and the two cases may be consolidated. It is unclear how the courts will handle the overlapping claims, but the fact that multiple lawsuits have been filed suggests a pattern of behavior that concerns Apple. OpenAI, for its part, has consistently maintained that it operates independently and respects intellectual property rights. The company’s statement on X was accompanied by a link to Apple’s full complaint, indicating a willingness to let the public judge the evidence.
As the legal process unfolds, both companies are likely to face intense scrutiny. Apple must prove that its trade secrets were indeed used without authorization, while OpenAI must show that its hardware development efforts are independent and conducted in good faith. The case is expected to take months or even years to resolve, and it may include discovery motions, depositions, and possibly a trial. In the meantime, the relationship between two of the most influential companies in technology has become adversarial, with potential consequences for the broader industry.
Source: 9to5Mac News