Full Breakdown
Apple Accuses OpenAI of Trade-Secret Misuse and Evidence Destruction
9/1/2026, 9:21:15 PM
Core Allegations and New Evidence
On August 31, Apple filed additional documents in the Northern District of California stating that former senior systems electrical engineer Chang Liu downloaded a confidential circuit schematic from Apple’s third-party cloud storage after leaving in January 2026. Apple says Liu used the schematic in LTspice while at OpenAI and later told colleague Yu-Ting Peng to “restore” Apple-issued devices to erase forensic data. Apple seeks a preliminary injunction to bar OpenAI from using the alleged secrets and requests expedited pre-trial discovery, including forensic imaging of Liu’s devices.
Background & Context
Apple’s lawsuit, filed on July 10, alleges OpenAI coordinated an effort to acquire Apple hardware-design trade secrets through former employees, naming Liu and OpenAI chief hardware officer Tang Tan. The dispute follows a 2024 partnership that integrated ChatGPT into Siri and has soured as OpenAI expands into consumer hardware. Apple contends OpenAI’s hiring of roughly 400 former Apple staff is part of a strategy to capture proprietary information.
Data & Statistics
- 400+ former Apple employees now work at OpenAI.
- Apple’s original complaint lists 11 former employees alleged to have shared trade secrets.
- Liu is said to have downloaded “dozens of confidential files,” including the circuit schematic.
- Tang Tan spent 24 years at Apple, leading iPhone and Watch design.
- Apple alleges Liu exploited a “rare, previously unknown authentication bug” to retain unauthorized cloud access.
Official Statements & Responses
- Apple’s filing: Liu kept an Apple-issued MacBook after departure, used it to access and download the schematic, ran simulations, and directed a colleague to destroy evidence.
- OpenAI’s response: The company calls the lawsuit “meritless,” saying Liu accessed the files only to help former Apple colleagues locate information, not to benefit OpenAI. OpenAI argues Apple’s off-boarding procedures allow departing employees to retain personal iCloud accounts that can contain work files, creating “sloppy procedures.” It also states that any parts shown during interviews were publicly available components.
Conflicting Reports & Gaps
- Access motive: Apple alleges theft; OpenAI maintains assistance to former coworkers.
- Physical components: Apple claims Liu encouraged candidates to bring Apple parts to interviews; OpenAI says the parts were old, publicly released items.
- Evidence of destruction: Apple cites Liu’s instruction to Peng to “restore” devices; OpenAI has not provided independent forensic verification.
- Specific trade secrets: OpenAI’s lawyers argue Apple has not identified a particular secret Liu shared with Tan, challenging the applicability of the Defend Trade Secrets Act.
Why It Matters
The case sits at the intersection of talent mobility, intellectual-property protection, and competition between a dominant consumer-electronics firm and an AI lab entering hardware. A ruling on Apple’s preliminary injunction could influence how aggressively companies block former employees from using knowledge acquired in prior roles.
What’s Next
Apple has asked the court to grant expedited discovery and a preliminary injunction. Judge Edward J. Davila is scheduled to hear arguments on October 1. The hearing will determine whether OpenAI must halt any development that potentially incorporates Apple’s alleged trade secrets while the broader case proceeds.
