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OpenAI responds to Apple’s trade secret theft lawsuit

Jul 12, 2026  Twila Rosenbaum 14 views
OpenAI responds to Apple’s trade secret theft lawsuit

OpenAI has officially responded to the lawsuit filed by Apple earlier today, which accuses the artificial intelligence company of engaging in a systematic pattern of trade secret theft involving former Apple employees. The legal complaint, lodged in a California federal court, names former Apple engineers Chang Liu and Tang Tan, along with OpenAI and its hardware partner io Products, as defendants.

In a statement posted on X (formerly Twitter), Drew Pusateri, OpenAI’s Director of Strategic Communications, wrote: “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 brief but firm denial was accompanied by a link to Apple’s complaint, suggesting the company is treating the matter seriously while maintaining its innocence.

Background of the Lawsuit

Apple’s lawsuit, filed early Wednesday, alleges that Chang Liu and Tang Tan—both former Apple employees who later joined OpenAI—accessed Apple’s proprietary systems and confidential files without authorization. According to the complaint, the defendants encouraged job candidates to bring Apple prototypes and components to interviews, disclosed details about unreleased products and manufacturing processes, and helped OpenAI approach Apple’s suppliers using proprietary information.

The filing paints a picture of what Apple calls “a pattern of theft of Apple’s trade secrets by OpenAI employees who were formerly at Apple,” adding that “such misconduct is normalized and exemplified by leadership.” Apple claims that these actions were not isolated incidents but part of a broader strategy to accelerate OpenAI’s nascent consumer hardware efforts, which are being developed in partnership with io Products—a company founded by former Apple design chief Jony Ive.

This is not the first time OpenAI’s hardware ambitions have sparked legal controversy. In late 2025, hardware startup iyO initially sued OpenAI and io Products over branding issues. The lawsuit was amended in March 2026 to include allegations of trade secret misappropriation, specifically naming Tang Tan as a defendant. iyO claimed that a former engineer downloaded confidential files and provided them to Tan. OpenAI has also disputed that lawsuit’s allegations.

Apple’s Long History of Protecting Trade Secrets

Apple has a well-documented reputation for aggressively protecting its intellectual property and trade secrets. The company’s culture of secrecy is legendary in the tech industry, with employees required to sign strict nondisclosure agreements and undergo regular security training. In recent years, Apple has pursued legal action against former employees who allegedly leaked confidential information to journalists or competitors.

One high-profile case involved a former engineer who was charged by the U.S. Department of Justice with stealing trade secrets related to Apple’s self-driving car project, Project Titan. Another case saw Apple sue a former employee who allegedly leaked details about the iPhone X and other products to a reporter. These lawsuits often result in settlements or guilty pleas, reinforcing Apple’s commitment to protecting its confidential information.

Given this track record, the current lawsuit against OpenAI and its former employees is consistent with Apple’s broader legal strategy. However, the involvement of a high-profile partner like Jony Ive and the rapid growth of OpenAI—which is also facing scrutiny over its data practices and governance—adds a new dimension to the dispute.

OpenAI’s Consumer Hardware Ambitions

OpenAI, best known for its generative AI models such as GPT-4o and DALL-E, has been quietly expanding into hardware. In 2024, the company announced a partnership with io Products, founded by former Apple design chief Jony Ive, to develop a new AI-powered consumer device. The project, reportedly codenamed “Aion,” aims to create a device that seamlessly integrates with OpenAI’s AI services, potentially competing with the rumored Apple Glasses and other wearable technology.

The collaboration has been shrouded in secrecy, with few details emerging about the device’s design or specifications. However, industry analysts have speculated that the product could be a voice-controlled assistant or a camera-based wearable designed to interact with the physical world. The involvement of Tang Tan, a former Apple executive with deep experience in hardware engineering, has fueled speculation that OpenAI is leveraging his knowledge to accelerate development.

Apple’s lawsuit seeks to halt that momentum by alleging that Tan and Liu improperly disclosed Apple’s confidential information about manufacturing processes, supply chain logistics, and upcoming products. The complaint includes detailed examples of what Apple claims are instances of trade secret theft, such as Tan sharing information about Apple’s supplier relationships with OpenAI’s hardware team.

Legal Implications and Possible Outcomes

Legal experts say that the outcome of the case will likely hinge on whether Apple can prove that the information taken qualifies as trade secrets and that OpenAI benefited from its misuse. Under the Defend Trade Secrets Act (DTSA) and California’s Uniform Trade Secrets Act, plaintiffs must demonstrate that the information was not generally known, that reasonable steps were taken to protect it, and that it was acquired through improper means.

Apple’s complaint appears to provide specific details about the alleged breaches, including dates, files accessed, and communications between the defendants. If these allegations hold up in court, OpenAI could face significant financial penalties and an injunction against using the allegedly stolen information. On the other hand, if OpenAI can show that the information was independently developed or obtained through lawful means, Apple’s case may falter.

Another complicating factor is the separate lawsuit filed by iyO, which raises overlapping allegations about trade secret misappropriation. If iyO’s case proceeds, it could provide additional evidence or create inconsistencies that benefit OpenAI. Conversely, a ruling against OpenAI in either case could set a precedent that emboldens other companies to sue over similar claims.

Reactions from the Tech Industry

The lawsuit has drawn widespread attention from the tech community, with many industry observers noting the irony of OpenAI—a company that has faced its own lawsuits over copyright infringement and data scraping—now being accused of stealing trade secrets. Some commentators have pointed out that OpenAI’s defense—claiming it has no interest in other companies’ trade secrets—may be difficult to square with the detailed allegations in Apple’s complaint.

Others have expressed concern about the chilling effect such lawsuits could have on the mobility of talent between tech companies. Non-compete agreements are largely unenforceable in California, but trade secret lawsuits can effectively deter employees from moving to competitors if they are seen as high-risk. Apple’s aggressive posture may make it harder for former employees to join startups or rival firms without facing legal scrutiny.

Meanwhile, investors in OpenAI have remained largely quiet, though some analysts suggest that the lawsuit could delay the launch of the company’s consumer hardware product. OpenAI has not disclosed a timeline for the device, but internal reports have suggested a possible release in 2027.

What Happens Next

OpenAI is expected to file a formal response to Apple’s complaint within the next few weeks. The company may seek to have the case dismissed or moved to arbitration, depending on the terms of any agreements its employees signed with Apple. It is also possible that the parties will engage in settlement discussions, though the public nature of the allegations and the strong statements from both sides suggest that a court battle is likely.

Apple has requested a jury trial and is seeking unspecified damages, as well as an injunction prohibiting OpenAI from using the allegedly stolen information. The case will be assigned to a federal judge in the Northern District of California, which has a reputation for handling complex intellectual property disputes.

As the legal process unfolds, the tech world will be watching closely to see how this lawsuit affects the competitive landscape of AI and consumer hardware. For now, OpenAI’s statement serves as a clear denial, but the evidence presented by Apple raises serious questions about the company’s practices and the conduct of its former Apple employees.


Source:9to5Mac News


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