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Apple sues OpenAI over alleged trade secret theft

Apple filed a lawsuit Friday against OpenAI over allegations of trade secret theft and breach of contract.

The iPhone maker alleges that this misconduct, which it says reveals a pattern of theft from OpenAI employees who previously worked at Apple, was directed by OpenAI’s senior leadership, including Chief Hardware Officer Tang Tan.

The lawsuit, which was filed in the U.S. District Court for the Northern District of California, accuses Tan of using Apple’s confidential project code names during OpenAI’s recruiting process, asking job candidates to bring in Apple hardware components to their interviews, coaching departing Apple employees on how to evade the company’s security procedures, and asking for details about the company’s unannounced products.

Before joining OpenAI, Tan had spent 24 years at Apple, most recently as VP of product design for the iPhone and Apple Watch.

The accusations come at a time when OpenAI is rumored to be developing its first hardware product, which would likely compete with the iPhone. In April, industry analyst Ming-Chi Kuo suggested this device could be a smartphone that would rely on AI agents instead of apps. If true, it would be one of the largest threats to Apple’s core hardware business to date.

Apple’s former lead designer Jony Ive’s device startup io was acquired by OpenAI last year in a $6.5 billion deal to aid the AI company with its hardware ambitions. While io was named in the filing, Ive was not.

Tan is not the only OpenAI employee referenced in the new complaint. Apple also alleges that Chang Liu, who spent eight years at Apple as a senior systems electrical engineer, failed to return an Apple-issued laptop after leaving the company for OpenAI in 2026 and had used the computer to download confidential Apple technical documents.

Apple says in the complaint that the stolen documents included information about unannounced technologies, features, and products, including technical specifications, engineering presentations, and proprietary project data.

Liu is also accused in the lawsuit of sharing Apple’s confidential information with other Apple employees applying for jobs at OpenAI, advising at least one of them on what to study before their interview.

Apple sent a letter to OpenAI in February to raise its concerns and received no response, the company said in the complaint.

It alleges that the behavior of these former employees is part of OpenAI’s strategy to extract Apple’s confidential information, which included asking Apple employees to bring designs and prototypes to their interviews, and answer questions about things like component and vendor selection processes.

Apple says its ongoing investigation revealed that OpenAI and its partners have even used Apple’s confidential information while the AI model maker develops its own hardware product. For instance, the filing references a proprietary metal finishing technique that OpenAI used after it allegedly misled a partner into believing it had Apple’s permission to do so.

Like many tech companies, Apple typically investigates potential trade secret theft or other improper activity by analyzing communications that took place on company-owned devices and reading through its server logs. By taking the case to court, Apple will have an opportunity to learn more about the extent of the alleged operation through the legal discovery process.

Apple is asking the court to bar OpenAI from using or disclosing its trade secrets, require the company to return any confidential Apple materials, and preserve evidence related to the case.

“This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership,” the filing states. “As a natural result, OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”

In a prepared statement, Apple also said the following:

At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products. We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so.

OpenAI was asked for comment. The company responded after publication, pointing to its public statement shared on X, which reads: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”

The filing is available here, or you can read it below.

This story is developing and will be updated. It was originally published at 1:32 p.m. PT.

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Hugging Face’s CEO on why companies are done renting their AI

Open source AI is booming, according to Hugging Face CEO Clem Delangue. The company has grown into something like a GitHub for AI in recent years, where AI builders can share and download open models and datasets, now used by roughly half the Fortune 500. Delangue has seen the same story play out again and again: companies start out on frontier APIs, but as they scale, the costs push them towards open source models. 

On this episode of TechCrunch’s Equity podcast, Rebecca Bellan talked to Delangue about why the open vs closed source fight matters in the wake of Anthropic’s halted Fable release, and why he’s worried about the possibility that a handful of big companies could end up controlling everything. 

Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod. 

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Dumb Co dared me to trade my iPhone for a hacked flip phone

When Lydia Peabody saw her friend pull out a flip phone at a party last year, she burst out laughing.

“I was like, ‘Girl, what are you doing with that thing? That has to be a joke!’” Peabody told TechCrunch. But it wasn’t just a prop — her friend was participating in Month Offline, a community challenge in which a small cohort of people exchange their smartphones for flip phones.

Peabody couldn’t fathom giving up her smartphone, but her friend inspired her. A year later, her life looks different. She left her career as a licensed therapist to become the founding CMO of Dumb Co, the flip phone company that grew out of Month Offline. She’s happier.

“I did Month Offline, and I was like, ‘Whoa, why am I suddenly not anxious? Am I feeling good?’” she said. “I didn’t even know that this is what I needed, and that spending this much time on my screen after work was causing me to feel so yucky.”

Dumb Co sells flip phones that sync to your smartphone, rather than replace it, forging a happy medium between the infinite connectivity of the iPhone and the unrealistic limitations of an early 2000s relic. Funded by friends and family, the company is run by a small team in their 20s and early 30s. Like their peers, they’re dissatisfied with the fast pace of plugged-in, frictionless life. They grew up with iPads and Instagram but now crave something simpler.

In the humble shell of a $20 TCL flip phone, Dumb Co loads its own software so that users can access apps like WhatsApp, Spotify, Apple Music, and Uber. You can even access iMessage through a third-party app (shh, don’t tell Apple). By packaging familiar comforts like music streaming, maps, and blue bubble texts in a flip phone, Dumb Co is creating something for people who want to reduce their screen time and be more present but struggle to fully disconnect in a world built for the smartphone.

Image Credits:Dumb Co

“We are trying to make something where you can leave your smartphone at home and literally just live your life and engage with other people,” Afreka Ebanks, Dumb Co’s communications director, told TechCrunch. “And when you want to be on your smartphone and you come back home, you can use it, because the feature for call forwarding and text forwarding can be turned off.”

I spent over a month testing the device — which Dumb Co calls the Dumb Phone — buoyed by the knowledge that in case of emergency, I always had my iPhone on hand. I didn’t use the Dumb Phone that much at first, but as I carried it around to show my friends, I noticed that they weren’t confused by my flip phone — they were envious of it.

“I’ve been getting into a lot of interesting conversations with people as I’m walking and someone sees me at the stoplight like, ‘What is this thing you have?’” said Ebanks, who bedazzled her flip phone. “I think it’s a great conversation starter, and I think it’s incredible watching people — myself included — work through the awkwardness of socializing with others, because I’m no longer distracted because I’m looking down at my phone.”

The author using an iPhone and a Dumb Phone
The author using an iPhone and a Dumb Phone.Image Credits:Sam Rizer (opens in a new window)

The Dumb Phone is clunky at times. It’s slower than I’m used to, and I end up spending more time typing T9 texts than if I just used my iPhone (what I really want is a dumb Sidekick with a QWERTY keyboard). Yet there’s something undeniably refreshing about knowing that if you want to open social media, take a picture you’ll never look at again, or check your email, you can’t.

When I talked to Peabody toward the end of my month of dual iPhone/flip phone ownership, she asked if I had ever left the house with just my flip phone. I confessed that I had not. I explained that sometimes I need to check public transit schedules, or keep up with Slack if I go to an appointment during the day.

“The truth is, when you say the word need, it almost gives the same meaning as like, ‘I need food or shelter,’” Peabody told me. “Yeah, sure, it’s actually helpful to know when the buses are coming, but if you don’t have that information, you turn to your neighbor and say, ‘Do you know when the next bus is coming?’”

Image Credits:Lucy Mauries / Dumb Co

Peabody dared me to leave my iPhone at home. The day we spoke, I had already planned to report on an event at a library across town. I tried to explain that I had never been to this library and wasn’t sure what subway stop to get off at. She told me to just write down directions before I left. I worried that I wouldn’t be able to record interviews at the event. She told me that the Dumb Phone can record audio.

“I really, really want you to do this, because I know that this is something that’s best experienced,” Peabody said. “When I switched to a Dumb Phone last summer, I did not use my smartphone for seven weeks, and I went on a cross-country road trip to New Mexico. I did not think I could do that, but I’m telling you that you can.”

I was running out of excuses. Peabody drove thousands of miles without a smartphone. How could I tell her that I needed my iPhone so that I could triple-check that Tasker-Morris is the right train stop?

Smartphones and social media are not a one-sided evil. There’s real value in connecting with friends online, sending pictures of your dog to your grandma, and using Apple Pay when you forget your wallet. While researchers don’t classify smartphone dependence like they would a substance addiction, there are certainly parallels. Not everyone has an adversarial relationship with their phone, but for people like me, more screen time often makes me feel more anxious, unfocused, and less grounded. Peabody even compared her relationship with her phone to getting hooked on Juul in college.

“It was really, really hard, but I totally broke that addiction, and now when I see a vape or something, I actually detest it — I’m like, ‘Oh no, I do not want that,’” she said. “When I turned off my smartphone for seven weeks, I would think about using it again, and I felt that same repulsion. I actually didn’t look at it or touch it.”

The author using an iPhone and a Dumb Phone
The author using an iPhone and a Dumb Phone.Image Credits:Sam Rizer (opens in a new window)

I was nervous to leave my iPhone at home, but I trusted my knowledge of the transit system and managed to get myself across town without my iPhone (I will admit, I texted someone just to be extra super sure that the library is off the Tasker-Morris stop). When I needed to send a text that was too long for T9 typing, I sent a voice message. I felt more connected with the world around me, and nothing went wrong.

I don’t see myself exclusively switching to the Dumb Phone, but I find it valuable as a tool to help me pay more attention to how and when I’m using my smartphone. The Dumb Phone ships with a black velour pouch, which you’re supposed to put your smartphone in when you leave it at home. I can’t quit the iPhone cold turkey, but I tossed the velour pouch in my bag on a beach trip, just in case. I used it for a few things, like ordering food and checking train times. But while I enjoyed a day on the beach, I didn’t take out my phone. I had a book, a sandwich, two bottles of water, some sunscreen — what else could I need?

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Disney+ is considering a free streaming tier, report says

Disney+ is considering making some of its streaming library available to watch for free, according to a report from Business Insider.

Disney’s chief product and technology officer Adam Smith discussed the possibility of offering free-tier content during a town hall on Thursday, the report says. It’s unknown which shows or movies would be included or when the streaming platform would consider launching the offering.

The rollout of free content would allow Disney+ to better compete with free services like YouTube and Tubi, which are capturing a growing share of consumers’ viewing time.

As streaming giants continue to raise prices, consumers have been turning to ad-supported services. According to data from Neilson, free streaming services represented 18.7% of U.S. television watch time in April 2026, rising from 16.8% in April 2025 and 12.7% in April 2024.

By offering select free content to consumers, Disney+ could better differentiate itself from its streaming peers like Netflix and Amazon Prime, especially as Apple TV+ and Paramount+ already allow non-subscribers to access a few free episodes.

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