Apple's hardware theft claims against OpenAI escalate

Apple has initiated a high-stakes legal battle against OpenAI, alleging that the AI company misused confidential hardware technology. The lawsuit accuses OpenAI of leveraging former Apple employees to gain access to proprietary design information and build its consumer hardware ambitions. Central to the dispute is io Products, an AI hardware startup co-founded by former Apple designer Jony Ive, which was later acquired by OpenAI. The case involves several former Apple executives and engineers, including Tang Tan and Chang Liu, who are accused of leaking sensitive data and facilitating unauthorized access to Apple’s internal systems. Tang Tan, a former vice president at Apple who oversaw the design of flagship products such as the iPhone, Apple Watch, and AirPods, left the company in February 2024. He subsequently joined Jony Ive’s AI hardware venture, io, and became OpenAI’s chief hardware officer following the $6.5 billion acquisition of the startup in May 2025. According to Apple’s complaint, Tan used confidential project codenames during job interviews and allegedly encouraged potential hires to bring physical prototypes, such as batteries, logic boards, and other unreleased hardware, to “show-and-tell” meetings. This practice, Apple claims, allowed OpenAI to bypass standard recruitment protocols and gain direct insight into Apple’s unannounced product developments. The lawsuit also targets Chang Liu, a former iPhone engineer who joined OpenAI in January 2026. Apple alleges that Liu continued to access Apple’s internal systems after leaving the company, failing to return his company-issued laptop and exploiting a security flaw to maintain unauthorized access. Court filings reveal that Liu communicated with a former colleague, stating, “LOL, I found out I can still access it,” before downloading over 1,000 pages of confidential engineering documents, hardware designs, and testing procedures. These materials were reportedly shared with OpenAI’s hardware team, potentially giving the company a competitive edge in developing its own consumer hardware. Apple further claims that OpenAI engaged in a coordinated effort to circumvent security measures by distributing internal guidance to departing Apple employees. This guidance allegedly instructed them on how to copy confidential documents without triggering security alerts and how to navigate exit interviews without drawing attention. The company asserts that this strategy has enabled OpenAI to employ more than 400 former Apple staff, allowing it to shortcut decades of research, engineering expertise, and substantial financial investments. Apple claims that it informed OpenAI of these breaches in February through a formal letter but received no response. It also alleges that OpenAI attempted to negotiate with Apple’s suppliers, such as Foxconn, Luxshare, and Goertek, using confidential processes. OpenAI has denied the allegations, issuing a brief statement asserting that it has no interest in another company’s trade secrets. The company emphasized its focus on building innovative technology that benefits users globally. Meanwhile, Tesla CEO Elon Musk, a known critic of OpenAI’s leadership, reiterated his skepticism of OpenAI CEO Sam Altman, calling him “Scam Altman” on the social media platform X. As the legal battle unfolds, the dispute highlights broader concerns about intellectual property protection and corporate espionage in the tech industry. With global electricity demand projected to increase by 3.6% annually through 2030, the pressure on companies to manage energy consumption intensifies. Real-time monitoring systems are increasingly being adopted to replace traditional retrospective accounting methods, signaling a shift toward more transparent and efficient resource management practices.