Apple sues former executive Tang Tan for alleged trade secret theft to benefit OpenAI

Apple has filed a federal lawsuit in California accusing former vice president Tang Tan of orchestrating a systematic effort to steal confidential information and recruit employees for OpenAI's hardware division.

Apple sues former executive Tang Tan for alleged trade secret theft to benefit OpenAI

Apple sues former executive Tang Tan for alleged trade secret theft to benefit OpenAI

Apple has filed a complaint in a California federal court accusing Tang Tan, its former vice president of product design, of organizing a scheme to extract trade secrets and recruit employees for OpenAI's hardware ambitions. The lawsuit, submitted on Friday, targets an executive who spent 24 years at the Cupertino company before departing in early 2024.

According to Frandroid, Tang Yew Tan joined Apple as a mechanical engineer and contributed to the iPod before moving to the iPhone division. He eventually became vice president of product design for the iPhone and Apple Watch, with oversight of AirPods acoustics, reporting to John Ternus. In February 2024, he left for LoveFrom, Jony Ive's design studio, before co-founding io, a hardware company dedicated to OpenAI.

OpenAI acquired io in May 2025 for approximately 6.5 billion dollars, despite the startup having no commercial product. Tan emerged as Chief Hardware Officer at OpenAI, tasked with developing the company's first consumer device.

The legal filing portrays Tan as the central figure in a broader operation. In the months preceding his resignation, he allegedly emailed himself information about Apple suppliers while meeting with OpenAI associates. After joining the artificial intelligence firm, he reportedly used confidential code names during interviews with candidates still employed at Apple, asking them to bring actual components, including batteries and motherboards, for demonstrations at OpenAI. One candidate reportedly expressed surprise, stating he did not know such parts could be removed from the office.

Apple further claims that Tan retained an internal document marked "Need to Know," which detailed security controls applied to departing employees. At OpenAI, this same document was allegedly presented as "a checklist that Tang prepared" and distributed to new hires before they even resigned. What Apple designed as a security protocol would thus have been repurposed as a manual for bypassing its own safeguards.

These allegations add to the case of Chang Liu, another former Apple employee accused of massive data downloads.

Behind the legal dispute lies a personal rivalry. According to Bloomberg journalist Mark Gurman, Tan maintained a tense relationship with John Ternus for years, reportedly coveting the position Ternus was designated to inherit from Tim Cook. Notably, the majority of over 400 former Apple employees recruited by OpenAI came from Ternus's division. A former colleague described Tan as someone known for "flying very close to the sun."

Tan has not made any public statement. OpenAI maintains it has "no interest in the trade secrets of other companies." The timing is sensitive: OpenAI is preparing its initial public offering and a consumer device powered by AI agents, tentatively scheduled for 2028. Apple is seeking damages, restitution of documents, and an injunction preventing the use of its confidential information.

Source: Google News LU FR