Apple Sues OpenAI & Ex-Engineer Over Trade Secret Theft

Apple is suing OpenAI and former iPhone engineer Chang Liu, alleging trade secret theft. The lawsuit claims Liu, an eight-year Apple veteran, kept a company laptop and downloaded confidential files about unreleased hardware after joining OpenAI's hardware division. Apple states Liu accessed their internal network after leaving in January 2026. The complaint also names Tang Yew Tan, OpenAI's chief hardware officer and a former Apple VP, suggesting coordination to help employees bypass Apple's exit procedures. OpenAI has recruited over 400 former Apple employees for its hardware team. This legal action highlights Apple's focus on protecting its hardware pipeline, especially after its recent Siri overhaul and increased competition in AI. The outcome could significantly impact OpenAI's move into consumer products.