Apple vs. OpenAI — How Trade Secret Theft Is Becoming the New Normal
Apple vs. OpenAI: The lawsuit that exposes the blurred line between partnership and corporate espionage.
Ok, so the lions and the hyenas — the relationship between these two is quite fascinating. Hyenas follow lions because they are excellent hunters. The leftover meat after the lions finish eating becomes food for the hyenas. On the other hand, more often than it seems, hyenas make a kill first, only for lions to arrive later and steal the prey.
But that’s only part of the story. What’s even more interesting is that whenever they get the chance, lions will kill hyenas, and likewise, hyenas will kill lion cubs if they find them unprotected.
So, in a way, both species benefit from each other’s presence, yet, given the opportunity, they can also become each other’s deadliest enemies.
But lions and hyenas are not the only ones with such a relationship. A similar dynamic exists among many of the world’s biggest companies as well — Samsung and Apple, for example.
Samsung vs. Apple
Samsung has been manufacturing displays and various other electronic components for Apple for many years. On the other hand, Apple is one of Samsung’s biggest customers. Apple’s orders generate billions of dollars in revenue for Samsung’s semiconductor and display businesses. In fact, Samsung earns more by selling screens to apple than selling their smartphones.
In other words, while the two companies do billions of dollars’ worth of business with each other, they are also each other’s biggest competitors in the smartphone market.
They frequently mock one another in their advertisements, and both are constantly racing to introduce the next breakthrough technology before the other (though, more often than not, they end up repackaging existing technologies as something new).
The rivalry has even made its way to the courtroom. In 2011, Apple sued Samsung in what is widely regarded as one of the biggest patent battles in tech history. Apple alleged that Samsung had copied the designs of the iPhone and iPad and had infringed several of its multi-touch and software patents. The legal battle spanned multiple countries and continued for nearly seven years. Eventually, in 2018, the two companies reached a settlement, although its terms were never made public.
The Portmanteaus
Relationships like these led to the introduction of a word in the English dictionary: “coopetition.” It is the portmanteau of “cooperation” and “competition.” Coopetition is a business strategy in which rival companies cooperate and compete at the same time.
But there’s another word that I like even more: “frenemy.” A portmanteau of “friend” and “enemy,” it refers to someone who is both a friend and an enemy at the same time.
When it comes to Samsung, it isn’t Apple’s only frenemy. More recently, Apple has found another one — OpenAI. And for those who may not know, OpenAI is the company behind ChatGPT (which I’m using while writing this to correct my grammatical mistakes).
Why Apple filed a lawsuit against OpenAI?
Now, you might be wondering — how can Apple and OpenAI possibly be frenemies?
Well, last year, Apple and OpenAI entered into a major partnership. Apple integrated ChatGPT into its Apple Intelligence features so that whenever Siri couldn’t answer a user’s question (which is quite usual ), it could, with the user’s permission, forward that query to ChatGPT. This gave Apple access to far more capable AI features without having to build everything from scratch. At the same time, OpenAI gained access to millions of premium Apple users — people who can afford expensive devices like iPhones, iPads, and Macs — and an opportunity to expose its AI to them while gathering more real-world usage data to improve its models.
In other words, the partnership benefited both companies. But there was another side to the story. OpenAI is now reportedly working on its own AI hardware, and many believe that these devices are being designed to compete directly with the iPhone. That is precisely why something rather unexpected happened. Less than a month ago, on July 10, Apple filed a lawsuit against OpenAI.
Apple’s lawsuit revolves around three major allegations.
1. Allegations against Tang Tan
The first allegation is against Tang Tan. He currently works at OpenAI, but before joining the company, he spent 24 years at Apple and served as Vice President responsible for the design of products such as the iPhone, Apple Watch, and AirPods.
Apple alleges that:
- Poaching Employees for Trade Secrets
Tang Tan interviewed several Apple employees and allegedly encouraged them to steal Apple’s trade secrets by tempting them with job opportunities at OpenAI. - Seeking Secret Hardware Prototypes
Apple claims that he asked employees to secretly bring prototypes of hardware products that Apple was developing and discuss them during job interviews. In other words, the allegation is that he indirectly suggested: if you want a job at OpenAI, bring Apple’s secrets with you. - Teaching Security Bypass Techniques
Apple alleges that Tang Tan taught employees how to bypass Apple’s security systems. - Obtaining Confidential Product Information
Apple also claims that he attempted to obtain confidential information related to Apple’s upcoming products, suppliers, manufacturing processes, and hardware components. - Emailing Confidential Documents to Himself
Before leaving the company, Apple alleges that Tang Tan emailed confidential supplier information and internal industry and market research reports to his personal email account.
In short, Apple accuses Tang Tan of stealing trade secrets, bypassing security measures, and encouraging Apple employees to do the same in exchange for employment opportunities.
2. Allegations Against Chang Liu
The second allegation is against Chang Liu. He also currently works at OpenAI but had previously spent eight years at Apple.
Apple alleges that:
- Failure to Return Company Laptop
After resigning, Chang Liu never returned his company-issued Apple laptop. - Downloading Confidential Documents
Apple claims that he exploited a security loophole in Apple’s internal network to download confidential hardware documents, engineering presentations, technical specifications, and project files. - Exploiting an Authentication Bug
According to Apple, Chang Liu exploited an authentication bug that Apple itself was unaware of at the time. He allegedly used another Apple employee’s laptop as part of the process. - Retaining Unauthorized Access
Apple further claims that he retained access to its internal network for several weeks after leaving the company and continued downloading dozens of confidential files. - Sharing Confidential Information
The lawsuit also alleges that Chang Liu shared Apple’s confidential information with other Apple employees who were applying for jobs at OpenAI. - Instructing Others to Spy
Apple further claims that he even instructed one candidate about which confidential information they should gather before attending an interview.
In short, Apple accuses Chang Liu of illegally accessing Apple’s internal network, exploiting security vulnerabilities, downloading confidential files, and stealing trade secrets.
By the way, doesn’t all of this sound surprisingly cheap? Five or ten years ago, it wasn’t uncommon to hear stories of fresh graduates in India stealing company data, running away with office laptops, or pulling similar stunts. But hearing that employees working at some of the world’s biggest technology companies — people earning enormous salaries — are also accused of doing the same things. Doesn’t it feel rather strange?
What about Jony Ive?
Before we continue, let me clarify one important point. Apple has made no allegations against Jony Ive. I’m mentioning him specifically because he spent nearly 27 years at Apple, eventually becoming its Chief Design Officer.
Under his leadership, Apple designed iconic products including the iMac, iPod, iPhone, iPad, MacBook, Apple Watch, and AirPods. He was one of Steve Jobs’ closest collaborators, and Jobs himself regarded him as one of the most important people at Apple.
However, Jony Ive left Apple in 2019, long before ChatGPT even existed. So, he is not accused of anything in this lawsuit. I guess he was too loyal for OpenAI to buy him!
3. Theft of Metal-Finishing Techniques
Apple’s third allegation is that OpenAI attempted to obtain Apple’s proprietary metal-finishing techniques.
In other words, the secret manufacturing processes that determine how metal components are processed, polished, textured, and ultimately given the premium look and feel associated with Apple products.
At first glance, this may not sound like a big deal. But according to Apple, this is precisely where the real value lies. These manufacturing techniques are the result of years of research, engineering, and billions of dollars in investment. The issue isn’t simply making metal look shiny; it’s the entire process that transforms ordinary metal into something that feels distinctly premium. Apple alleges that OpenAI attempted to acquire this confidential manufacturing know-how.
The Calm Before the Storm
Incidentally, none of this happened overnight. Earlier this year, in February 2026, Apple reportedly sent OpenAI a letter in an attempt to resolve these issues through mutual understanding. Apple claims that it never received a response, and only then decided to file the lawsuit.
What’s more, Apple describes these allegations as merely the “tip of the iceberg,” suggesting that even more serious allegations may emerge as the case progresses.
If Apple’s allegations are true, then in this story, it is quite safe to conclude that OpenAI is the hyena feeding on the lion’s leftovers.