Funding
REGULATION WATCH:

Apple Lawsuit Accuses OpenAI Of Using Trade Secrets For Hardware Push

Newsroom brief

Apple alleges OpenAI used former Apple staff and confidential material to support a hardware push, while OpenAI says it has no interest in other companies' trade secrets.

Verified against source materialEdited by SendTech Times Capital & Policy Desk
Apple Lawsuit Accuses OpenAI Of Using Trade Secrets For Hardware Push
Image source: TechCrunch

Apple Complaint Names Recruiting And Prototype Allegations

Apple has turned its dispute with OpenAI into a court fight, filing an Apple OpenAI trade secret lawsuit that accuses the ChatGPT maker of using former Apple staff and confidential material to accelerate a consumer-hardware push.

Apple's complaint alleges that the conduct was directed by OpenAI senior leadership, including Chief Hardware Officer Tang Tan; TechCrunch reported that Tan previously spent 24 years at Apple and most recently worked as vice-president of product design for the iPhone and Apple Watch.

In Northern California federal court, Apple says Tan used confidential project code names during OpenAI recruiting, asked candidates to bring Apple hardware components to interviews, coached departing Apple employees on security procedures and sought information about unannounced products.

Those claims remain allegations in a newly filed civil case, not findings by a court.

Apple also names Chang Liu, described in the complaint as a former senior systems electrical engineer who spent eight years at Apple before leaving for OpenAI in 2026.

Apple alleges that Liu failed to return an Apple-issued laptop and used the computer to download confidential technical documents covering unannounced technologies, engineering presentations and proprietary project data.

OpenAI Hardware Push Brings Jony Ive Deal Into The Case

The lawsuit lands as OpenAI is working on hardware ambitions beyond its software and model business.

TechCrunch reported that OpenAI acquired Jony Ive's device startup io last year in a $6.5 billion deal intended to support those plans.

The filing names io, while Jony Ive was not named in the case.

Apple does not need to prove a shipped device to bring a trade-secret case, but the complaint shows why the iPhone maker is treating component designs, code names and prototype information as commercially sensitive.

The filing says Apple sent OpenAI a letter in February raising concerns and received no response.

Apple wants a court order preventing OpenAI from using or sharing Apple trade secrets, returning confidential Apple materials and preserving evidence tied to the case.

OpenAI Denies Interest In Trade Secrets

Apple's public statement says significant evidence suggests people employed by OpenAI wrongfully took secret and confidential information about unreleased technologies, processes and products.

The company said it would defend its teams' work and intellectual property.

OpenAI responded after publication by pointing to a public statement on X.

OpenAI said it has no interest in other companies' trade secrets and remains focused on building technology for users.

For technology companies, the case moves competition over AI hardware from product speculation into legal discovery.

Apple is alleging a pattern involving recruiting, device components, internal documents and partner work; OpenAI is denying interest in rival trade secrets rather than offering a point-by-point public answer to each allegation.

The court has not ruled on Apple's allegations, OpenAI has not disclosed its hardware product specifications or launch date, and the public record does not yet include discovery evidence showing how much Apple confidential material, if any, reached OpenAI's hardware work.

Share this article
inXf

Related articles

More
Meta Faces Backlash Over AI Images From Public Instagram Photos
Capital & Policy

Meta Faces Backlash Over AI Images From Public Instagram Photos

Meta is facing criticism after BBC reported that Muse Image can generate AI pictures using public Instagram profile photos for US users. Meta said public-account holders can opt out, while campaigners warned that the setting is separate from normal account privacy controls.

Bahrain Bourse Sets 2028 Target For Nasdaq CSD Upgrade
Capital & Policy

Bahrain Bourse Sets 2028 Target For Nasdaq CSD Upgrade

Economy Middle East reported that Bahrain Bourse plans to move Bahrain Clear to Nasdaq Eqlipse CSD technology, with full deployment scheduled for the fourth quarter of 2028. The report links the upgrade to post-trade modernization, while project cost and migration milestones remain undisclosed.

California Opens Claude Access For Government Staff Under Anthropic Deal
Capital & Policy

California Opens Claude Access For Government Staff Under Anthropic Deal

California agencies and local governments can use Anthropic’s Claude under a discounted agreement that includes training and support. The deal gives the state an AI procurement path, but the public announcement did not disclose contract length, rollout timing or measured service results.

MAS Proposes Three-Week Route For Repeat Singapore Retail Funds
Capital & Policy

MAS Proposes Three-Week Route For Repeat Singapore Retail Funds

MAS is consulting on an Alternative Funds Appendix for Singapore retail fund products. The regulator said most new fund categories could take about three months to assess, while later funds of the same type could be authorised within three weeks.

OpenAI GPT-5.6 Rollout Meets White House Denial After Clearance Account
Capital & Policy

OpenAI GPT-5.6 Rollout Meets White House Denial After Clearance Account

A Commerce Department clearance account put OpenAI's GPT-5.6 on track for broader release, but the White House told CNBC it had not given any approval or green light and OpenAI has not announced a general-availability date.

PitchBook Says AI Took $355.9 Billion Of US Venture Deals In First Half
Capital & Policy

PitchBook Says AI Took $355.9 Billion Of US Venture Deals In First Half

The PitchBook-NVCA Venture Monitor put US venture deal value at $412.7 billion in the first half of 2026 and said AI companies took $355.9 billion of that total. The report also warned that returns could narrow if AI growth or returns disappoint.

Keep Reading

More Stories

Latest
GSA Counts 32 African Satellite D2D Partnerships Before Launch WaveTelco & ConnectivityJul 11, 2026GSA Counts 32 African Satellite D2D Partnerships Before Launch WaveGSA says African operators have announced 32 direct-to-device satellite partnerships as D2D launches spread to 18 countries, but launch dates, tariffs, handset support and roaming terms remain undisclosed.DEWA Launches International Utility Arm Without Naming First ProjectsEconomyJul 11, 2026DEWA Launches International Utility Arm Without Naming First ProjectsDEWA launched DEWA International as a wholly owned subsidiary to develop energy and water infrastructure abroad. The Dubai utility cited AED32.8 billion in 2025 revenue and AED9.06 billion in net profit, but did not name first countries, partners, contracts, investment values or capacity targets.e& Sells Vodafone Stake For $5.95 Billion Without Naming Cash UseEconomyJul 11, 2026e& Sells Vodafone Stake For $5.95 Billion Without Naming Cash Usee& agreed to sell its full 16.21 per cent Vodafone stake to Vega for $5.95 billion, ending its board-level investment in the British telecoms group. The UAE company expects roughly Dh4.7 billion in net cash return but did not name the institutions holding the shares before completion or a specific use of proceeds.North Carolina Cuts Data Centre Power Tax Break As AI Loads GrowCloud & Data CentersJul 11, 2026North Carolina Cuts Data Centre Power Tax Break As AI Loads GrowNorth Carolina repealed a sales tax exemption on data centre electricity while keeping equipment incentives. The North Carolina General Assembly Fiscal Research Division said the repeal would add $21.4 million in fiscal year 2026-27 revenue, while large-load utility rules remain unresolved.SK hynix Memristor AI Chip Shows 21.3 TOPS/W But Leaves Throughput GapChips & SemiconductorsJul 11, 2026SK hynix Memristor AI Chip Shows 21.3 TOPS/W But Leaves Throughput GapSK hynix, TetraMem and USC researchers developed a 65 nm memristor-based in-memory computing chip for edge AI. The paper listed 21.3 TOPS/W at 100 MHz, but the demonstration left four of 10 NPUs idle and did not disclose full-chip saturated throughput.Metaplanet Studies Bitcoin-Backed Digital Bonds With JPYC And ProgmatFintech & Digital PaymentsJul 11, 2026Metaplanet Studies Bitcoin-Backed Digital Bonds With JPYC And ProgmatMetaplanet is studying Bitcoin-backed digital credit products with JPYC, Progmat and a securities unit under Project Nova. The company linked the work to its JPY 2.1 billion Siiibo Securities acquisition, but said no issuance decision has been made and its 43,000 BTC treasury is not pledged.Burjeel Sukuk Draws $1.6 Billion Order Book For AI Healthcare PlansCapital & PolicyJul 10, 2026Burjeel Sukuk Draws $1.6 Billion Order Book For AI Healthcare PlansBurjeel Holdings listed a $500 million sukuk on the London Stock Exchange after a $1.6 billion order book, but did not name the AI healthcare projects or digital budget tied to the proceeds.IBM Bob Adds Multi-Agent AI Controls For Legacy Software WorkAIJul 10, 2026IBM Bob Adds Multi-Agent AI Controls For Legacy Software WorkIBM has expanded Bob with multi-agent coordination, Bobalytics cost analytics and premium IBM Z, IBM i and Java workflows, while customer performance claims still lack independent benchmark detail.SK Hynix Nasdaq Debut Raises $26.5 Billion For AI Memory CapacityChips & SemiconductorsJul 10, 2026SK Hynix Nasdaq Debut Raises $26.5 Billion For AI Memory CapacityTech Wire Asia said SK Hynix is raising about $26.5 billion through a Nasdaq listing to fund Korean fabs and packaging capacity, while also flagging a 200% share run and memory-cycle risk.Microsoft Says AI Datacentres Drove 25 Percent Emissions RiseCloud & Data CentersJul 10, 2026Microsoft Says AI Datacentres Drove 25 Percent Emissions RiseMicrosoft said total Scope 1, Scope 2 and Scope 3 emissions rose 25 percent year over year in FY25, driven primarily by datacentre infrastructure expansion. The company matched 100 percent of annual global electricity consumption with renewable energy, but said AI infrastructure demand for energy, water, land and materials is still outpacing sustainability solutions.Injective SDK npm Compromise Exposes Wallet-Key Theft RiskCybersecurityJul 10, 2026Injective SDK npm Compromise Exposes Wallet-Key Theft RiskSocket, Ox Security and StepSecurity said they detected wallet-stealing code in @injectivelabs/sdk-ts npm package version 1.20.21 after an Injective Labs contributor account was compromised. Socket said the malicious release was downloaded 310 times before deprecation, while Ox Security counted 87 direct dependencies and described a six-figure cumulative download count across dependent packages.SEC Novel ETF Review Draws Early Pushback Over Prediction MarketsFintech & Digital PaymentsJul 10, 2026SEC Novel ETF Review Draws Early Pushback Over Prediction MarketsThe SEC is asking whether novel ETFs should be allowed to move further into cryptocurrencies and prediction markets. Early commenters warned against event-contract ETFs, while Roundhill, Bitwise and GraniteShares proposals remain unresolved.