Apple Sues OpenAI Over Trade Secrets, Email Error Ends Talks

By: Harsh Vardhan

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Updated on: 15-Jul-2026 06:00 PM

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​Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of stealing trade secrets from former Apple employees to accelerate its hardware development. The dispute escalated after a lawyer representing Apple mistakenly mixed up the names and email addresses of two OpenAI employees, Wang and Chang, during communications. This error led OpenAI to end talks with Apple in February, according to an NBC News report.

Key Highlights

• Apple sues OpenAI for alleged theft of trade secrets by former employees.
• Talks between Apple and OpenAI ended after a lawyer's email mistake in February.
• Apple claims over 400 former employees now work for OpenAI.
• OpenAI denies wrongdoing and says there is no evidence supporting Apple's complaint.
• Apple's lawsuit also names hardware start-up io Products as a defendant.

Legal Dispute and Communication Breakdown

Apple alleges that OpenAI and its former staff misused confidential hardware information. The company claims this information helped OpenAI advance its consumer device projects. Apple’s complaint states that OpenAI “never responded” to its concerns. However, NBC News found that OpenAI did reply to Apple’s initial outreach in February. The discussions reportedly ended abruptly after the lawyer’s email mistake involving Wang and Chang.

OpenAI has denied the allegations. In a statement to Bloomberg, the company said, “While we take these allegations seriously, we’re not aware of any evidence that this complaint has merit.” OpenAI also emphasized its commitment to fair competition and the freedom for employees to choose their workplace.

Details of Apple’s Allegations

Apple’s lawsuit names two former employees as defendants: Chang Liu, a former senior system electrical engineer, and Tang Yew Tan, former vice president of product design for the iPhone and Apple Watch. The complaint alleges that Liu failed to return a company-issued laptop and used an authentication bug to access Apple’s internal network. Apple claims Liu downloaded dozens of confidential hardware-related files.

Apple also accuses Tang, now OpenAI’s hardware chief, of using confidential information to benefit OpenAI. According to Apple, Tang emailed himself material about Apple suppliers and internal industry summaries before leaving the company. Apple further alleges that OpenAI designed a process to help former Apple employees evade security procedures. The company claims a former iPhone engineer who joined OpenAI hacked into Apple’s systems to obtain engineering presentations and other sensitive information.

Apple asserts that OpenAI’s hardware team is based on a weak foundation, stating that it is “rotten to its core.” The lawsuit notes that over 400 former Apple employees now work for OpenAI. Apple argues that OpenAI’s employment of these individuals does not entitle the company to use Apple’s trade secrets to advance its hardware efforts.

OpenAI’s Hardware Moves and Related Lawsuits

Last year, OpenAI spent $6.5 billion to acquire hardware start-up io Products, which was founded by former Apple designer Jony Ive. Apple has named io Products as a defendant in the lawsuit, though Jony Ive is not personally named. Earlier this year, reports indicated that OpenAI considered legal action against Apple over Apple’s decision to use ChatGPT for complex queries on iPhones.