Apple Accuses OpenAI of Stealing Trade Secrets; Lawsuit Reveals Shocking Details - Sarmad

Apple has filed a lawsuit against OpenAI and former employees, accusing them of misappropriating trade secrets related to devices and products under development. The company alleges that the defendants exploited security vulnerabilities and copied confidential files, while OpenAI has denied the accusations, maintaining that it does not rely on competitors’ trade secrets to develop its technologies.
The tech giant Apple filed the lawsuit against OpenAI on Friday, accusing the artificial intelligence company and two former Apple employees of stealing its trade secrets.
The complaint alleges that OpenAI and the named employees aggressively recruited Apple staff and obtained confidential information about the company’s devices.
In response to these allegations, a spokesperson for OpenAI said in a statement that the company “has no interest in other companies’ trade secrets.”
The spokesperson added: “We remain focused on building innovative technologies that empower people everywhere.”
Security Vulnerabilities and “Show and Tell” Sessions at Apple
Apple stated that it identified “a pattern of theft” of its trade secrets committed by former employees who moved to OpenAI, starting with former engineer Chang Liu.
According to the complaint, Liu worked as a senior electrical engineer for Apple’s systems and left the company in January 2026 to join OpenAI, without returning his company laptop or scheduling an exit interview.
The complaint further states that Liu later discovered an “authentication flaw” that allowed him access to Apple’s internal systems, and “secretly” downloaded dozens of confidential files related to the company’s devices, including information on unreleased products, technical specifications, and engineering presentations.
Liu is also accused of “coaching” a former Apple colleague while attempting to recruit her to OpenAI, advising her on how to avoid detection by Apple’s security team during the file copying process, and suggesting which confidential materials she should review in preparation for the interview.
The lawsuit accuses OpenAI’s Chief Hardware Officer, Tang Yu Tan, of “systematically using Apple’s confidential information to benefit OpenAI.”
The complaint notes that Tan was responsible for some of Apple’s “most sensitive projects” during his 24 years at the company, where he served as Vice President of Product Design for the iPhone and Apple Watch.
The complaint adds that in the months preceding his departure from Apple, Tan began emailing himself information regarding the company’s suppliers, as well as “internal summaries of the consumer electronics industry.”
After moving to OpenAI, the lawsuit also accuses him of exploiting job interviews to extract information about Apple products from candidates, asking applicants to bring “real” parts of Apple products to “show and tell” sessions.
“The Tip of the Iceberg”
Apple described what it has uncovered as “the tip of the iceberg,” as it “lacks the ability to see what is happening behind closed doors at OpenAI, where such abusive behavior is normalized and entrenched by leadership.”
It added that OpenAI’s emerging hardware activities are now “built on the greatest fragility and are fundamentally corrupted by its illegal reliance on misappropriated trade secrets.”
“Codex Micro”
In June, OpenAI hinted at the launch of a new hardware product called “Codex Micro,” a small programmable keyboard known as a “macro pad.” “Codex” is an AI-based coding agent.
The promotional video for the product shows what appears to be a small desktop device bearing the company’s branding.
The accompanying note reads: “Your favorite shortcuts in Codex are getting an upgrade. July 15.”