Apple Accuses OpenAI of Using Stolen Hardware Secrets as Legal Battle Intensifies

Apple has escalated its trade secrets lawsuit against OpenAI, accusing the artificial intelligence company of using confidential hardware information obtained through a former Apple engineer and of failing to preserve potentially important evidence.
The allegations center on Chang Liu, a former Apple electrical engineer who joined OpenAI in January 2026. In a new court filing, Apple said a forensic review of a MacBook used by Liu after his departure showed that he accessed a confidential Apple power-converter circuit schematic and later used the information in his work at OpenAI.
Apple’s filing was submitted in support of its request for expedited discovery in the federal case. The company is seeking access to additional evidence as it investigates whether proprietary Apple technology was improperly transferred to OpenAI’s growing hardware operation.
OpenAI disputes Apple’s allegations and has asked the court to dismiss the lawsuit. The company argues that Apple has not established that its trade secrets were misappropriated and says the case is partly an attempt to restrict employee movement and competition.
Apple Points to MacBook Evidence
The latest developments follow OpenAI’s production of an Apple-issued MacBook that Liu had continued using after leaving Apple. According to Apple’s filing, the laptop was provided during discovery on August 21, after what Apple characterized as delays in producing relevant evidence.

Apple alleges former engineer Chang Liu accessed confidential power-converter schematics after joining OpenAI, with new evidence found on a MacBook. Source: Reuters via X
Apple said its initial forensic analysis indicated that Liu and others at OpenAI were aware that he retained access to certain third-party Apple cloud storage accounts after leaving the company.
More significantly, Apple alleges that Liu downloaded a confidential power-converter circuit schematic and subsequently incorporated information from it into his work at the AI company. Reuters reported that Apple claims Liu used an AI agent to work with the confidential schematic in March 2026.
Apple also alleges that Liu used an OpenAI tool with the same name as an internal Apple engineering application. The company has presented these details as evidence supporting its request for accelerated fact-finding.
The allegations have not been proven in court. Liu has denied wrongdoing, while the company continues to reject Apple’s broader claims.
Apple Alleges Evidence Was Destroyed
Apple’s latest filing goes beyond the alleged use of confidential hardware information. The company also claims that evidence relevant to the dispute may have been deliberately destroyed.
According to Apple, Liu sent instructions to an OpenAI colleague concerning the destruction of evidence after he learned that Apple was investigating his activities. Apple said the MacBook provided during discovery contained evidence supporting that allegation.

Apple alleges Liu instructed an OpenAI colleague to destroy evidence, and delayed device disclosure strengthened its case for expedited discovery. Source: @WatcherGuru via X
Apple argued that the laptop represents only a limited portion of the information it has received from the AI company and the former employees involved in the case.
“The MacBook represents the very limited information Defendants provided so far,” Apple’s lawyers wrote, according to the court filing. The company said the material indicates that its concerns involve more than a speculative search for information.
The evidence-destruction allegation is separate from the underlying question of whether OpenAI or its employees actually misappropriated Apple’s trade secrets. The court will ultimately have to assess both issues as the litigation develops.
OpenAI Calls Dispute “a Mess of Apple’s Own Making”
OpenAI has rejected Apple’s characterization of events and has argued that the dispute stems partly from Apple’s own internal security and employee offboarding procedures.
In its court filing, OpenAI described the case as “a mess of Apple’s own making.” The company argued that documents Liu accessed after leaving Apple were opened to assist former Apple colleagues with Apple-related work and were not relevant to his responsibilities at OpenAI.

The company blames Apple’s lax data policies and rushed offboarding, arguing the lawsuit seeks to curb competition rather than address genuine theft. Source: Reuters via X
OpenAI has also criticized Apple’s data-security practices, including its handling of employee access to cloud services after workers leave the company.
The AI company contends that Apple’s policies made it possible for former employees to retain access to company information and that the circumstances do not demonstrate an effort by OpenAI to obtain confidential technology.
OpenAI has asked the court to significantly narrow Apple’s requested injunction, warning that broad restrictions could interfere with employees’ ability to move between technology companies. It has also argued that Apple’s lawsuit could discourage workers from joining competitors.
More Than 400 Former Apple Employees at OpenAI
The dispute has attracted attention partly because of the scale of employee movement between the two companies.
Apple’s lawsuit identifies Liu and former Apple executive Tang Yew Tan as central figures in its allegations. The AI company has hired roughly 400 former Apple employees, according to court filings and reporting on the case.
Apple argues that its concerns are connected to OpenAI’s expanding ambitions in consumer hardware. The company has accused OpenAI and the former employees of misappropriating information relating to hardware design, manufacturing, and supply chain operations.
OpenAI, meanwhile, maintains that hiring Apple’s former employees is lawful and says the employees did not bring Apple’s confidential technology into their new roles.
The disagreement highlights a difficult issue for technology companies: employees often carry knowledge and experience from previous jobs, but trade-secret law places limits on the use or disclosure of genuinely confidential business information.
Apple-OpenAI Lawsuit Expands Beyond Software
The case represents a significant shift in the relationship between Apple and OpenAI, which previously worked together on integrating ChatGPT into Apple’s ecosystem.
Their relationship has become more competitive as OpenAI expands beyond AI software and into consumer hardware. The company’s acquisition of io Products, the hardware company founded by former Apple design chief Jony Ive, has further increased the companies’ overlap.
Apple’s lawsuit, filed in July 2026 in federal court in California, alleges that the AI company benefited from confidential information provided by former Apple employees. Apple has sought monetary damages as well as restrictions preventing the AI company from using the disputed information.
In August, Apple separately asked the court for a preliminary injunction that would restrict OpenAI’s use of the alleged trade secrets while the case proceeds. The company opposed that request and argued that Apple had not established the basis for such extraordinary relief.
What Happens Next
The immediate issue is whether Apple’s request for expedited discovery and preliminary relief will be granted.
A federal judge is scheduled to hear arguments on Apple’s preliminary-injunction request on October 1. The proceedings could determine how broadly the court allows Apple to investigate OpenAI’s hardware operations, former Apple employees, and the handling of potentially relevant evidence.
For Apple, the newly examined MacBook provides additional material for its claim that confidential information was accessed and potentially used after Liu joined the AI company. For OpenAI, the central argument remains that Apple has not demonstrated that protected trade secrets were actually misappropriated and used to develop its products.
The court has not ruled on the merits of those competing claims. Until it does, the allegations concerning Liu, OpenAI’s handling of evidence, and the alleged use of Apple’s hardware information remain disputed.
The case is nevertheless becoming an important test of how trade-secret protections apply as AI companies recruit experienced engineers and expand into hardware. It also underscores the growing competitive overlap between two companies that were once partners but are now increasingly positioned against each other in the next generation of consumer technology.








