Having spent decades covering Apple, I understand and respect its efforts to maintain a shroud of secrecy over its product development. Reading this line in the blockbuster Apple vs OpenAI lawsuit, I can hear the voices of countless Apple execs and PR people who, rightly or not, feel deeply wronged by what it considered a trusted partner: “OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”
Late last week, Apple filed a lawsuit against OpenAI and, more specifically, a pair of key employees who, over the last two years, left Apple to join OpenAI’s hardware business. The massive filing, which calls for a jury trial, accuses the pair of corporate espionage, essentially stealing a raft of trade secrets to help bolster OpenAI’s still unrealized efforts to build AI hardware (it’s currently working with Jony Ive to build what may eventually become a wearable device).
I’ve spent some time poring over the documents and, to be honest, the accusations are stunning and, if true, seem unaccountably brazen for people who spent years with the Cupertino tech giant.
From the inside out
Tang Yew Tan, who currently serves as OpenAI’s Chief Hardware Officer, was at Apple for a quarter of a century and, according to his own LinkedIn profile, “Oversaw the design and development of iPhone and Apple Watch Product Design, Interconnects Design, Acoustics and Materials technology centers.”
Chang Liu (whose LinkedIn handle is “changliu-apple”) spent almost a decade as an iPhone Electrical Engineer.
Apple’s NDA’s that they hand to journalists like me are almost legendary (the first time I signed one, I swear my hands were shaking). I can only imagine the intensity of the Intellectual property agreements (IPAs) Apple says it asks employees to sign from time to time. The language is probably appropriately terrifying; it’s hard to conceive of how Liu and Tan could ignore them, and yet, according to the lawsuit, that’s exactly what the pair did both during their waning days at Apple and in the time after when they joined OpenAI.
OpenAI’s only public response so far has been from its Director of Strategic Communications Drew Pusateri, who said on X, “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
The company’s co-founder and CEO Sam Altman also only obliquely referenced it on X when someone accused him of being afraid of Apple. He wrote, “I am not afraid of Apple, but I have tremendous respect for them. s-tier company.” (“S-Tier” basically means “elite”).
i am not afraid of apple, but i have tremendous respect for them. s-tier company.July 11, 2026
I won’t ask you to read the full document and instead have cherry-picked the most eye-watering accusations:
A potentially sneaky exit
When Liu left Apple, he allegedly took his work laptop with him. If you’ve ever worked in a corporate environment, you know this is a no-no. Most companies will pursue you to the ends of the earth to retrieve that hardware and whatever corporate access and secrets it contains.
It gets worse
Lui apparently didn’t shelve the old (we assume) MacBook. Instead, he, according to Apple, exploited a network vulnerability and used the system to access Apple network folders. If true, that’s an incredibly bold move. Surely Liu would’ve known how Apple’s internal forensics could discover what was accessed by whom and when.
Boasting
While allegedly downloading Apple’s proprietary files (details on unreleased products, presentations, tech data, specs, and more), Liu may have messaged someone through the Apple-issued laptop, celebrating how he was pulling the wool over Apple’s eyes with “LOL” and “so funny”. Again, was Liu the most careless corporate spy ever? Who would boast when they know Apple would eventually stumble on these details?
Coaching recruits
Apple claims Liu was actually recruiting Apple employees and coaching them on how to gather data before leaving the company. He may have told them how to email themselves files before exiting Apple.
Now, I understand how some of your, say, personal data, can end up intertwined with corporate data and you may want to hold onto some of that. On the other hand, if you didn’t keep a firm line between work and personal files, that’s on you.
A real betrayal
Tang Yew Tan spent 25 years with Apple, and what he’s being accused of has surely enraged and disappointed Apple. “Mr. Tan has been methodically using Apple’s confidential information to benefit OpenAI,” claims Apple.
Like Lui and other Apple recruits, Tan may have emailed himself proprietary Apple info.
Using Apple codenames
Apple claims Tan is asking Apple recruits about upcoming projects using code names only Apple employees would know.
We have their OK
This one is kind of mind-blowing. Apple alleges that OpenAI has used Apple info to get a partner to apply a “specific trade-secret metal finishing technique,” because they convinced the partner Apple was OK with them doing so.
Carry out
This last one might be the boldest move of all. Apple alleges that OpenAI instructed potential Apple recruits to bring everything from CAD files to actual prototypes or parts to OpenAI interviews.
That’s a particularly stunning accusation, and again, just seems so reckless. What kind of corporate spies operate with this level of impunity?
Naturally, OpenAI will, at some point, respond properly to this lawsuit, perhaps with one of their own. Apple could also eventually settle this suit out of court. They’ve done so before with similar cases, though I don’t think they were quite at this level.
Can they come back from this?
Whatever happens with this case, it’s hard to imagine the Apple / OpenAI relationship, which is already somewhat fraught, survives.
For now, you can explicitly choose to use ChatGPT to handle requests in the new Siri in iOS 27 dev beta, and it’s a key part of Image Playground and Visual Intelligence. Apple could pull those options and lean harder into its Google Gemini foundation Model partnership while this case works its way through the courts.
I don’t think that will materially impact your iPhone experience, but the loss of direct access to those hundreds of millions of iPhone customers could hurt OpenAI, a company that, as Apple acknowledges, is trying to build its own hardware business.
Plus, if OpenAI loses, it could see a lot of the in-house hardware innovation potentially tied to Apple’s work blocked from ever reaching consumer hands.
And, obviously, it’ll be hard for the partnership to come back from this passage in the suit:
“Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership. This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information.”
Read the full article here
