Apple Sues OpenAI Over Alleged Hardware Trade Secret Theft
Apple filed a lawsuit on July 10, 2026, in the U.S. District Court for the Northern District of California, accusing OpenAI of orchestrating a coordinated campaign to steal trade secrets tied to Apple’s hardware development. The complaint alleges the activity occurred "at every level" of OpenAI, including members of its technical staff and hardware leadership, and seeks damages, injunctions, and a court order barring use of the alleged secrets.
From 2024 Partnership to Direct Competition
Relations between the two companies changed sharply after their high-profile 2024 partnership, which brought ChatGPT integration into Apple’s operating system. OpenAI CEO Sam Altman appeared at Apple headquarters for the announcement. Tensions rose after OpenAI announced plans to enter the hardware market and acquired IO Products, a startup founded by former Apple designer Jony Ive, for $6.4 billion.
Apple’s updated Siri assistant now runs on Google’s Gemini AI models rather than OpenAI technology. The legal filing describes a transition from collaboration to direct competition, with Apple alleging OpenAI used the partnership to extract proprietary information.
Who Is Named in the Lawsuit?
An Apple representative stated that "significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information." The suit names OpenAI, hardware chief Tang Tan, former Apple employee Chang Liu, and IO Products, the $6.4 billion startup acquired by OpenAI, as defendants.
What Does Apple Allege?
The complaint outlines a months-long scheme involving former Apple employees now at OpenAI:
- Tang Tan, a former Apple vice president now serving as OpenAI’s hardware lead, allegedly directed Apple job candidates to bring "actual parts" from Apple to interviews for "show and tell" sessions.
- OpenAI is accused of coaching departing employees on how to evade Apple’s security processes.
- Former employee Chang Liu is accused of stealing an Apple laptop.
- OpenAI allegedly asked hardware firms to use a proprietary metal finishing technique while misleading a partner into believing they had Apple’s permission.
Apple characterized the alleged scheme as "rotten to its core."
How Has OpenAI Responded?
A representative for OpenAI rejected the allegations, stating: "We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere."
The lawsuit arrives as OpenAI prepares for a major initial public offering, and roughly two months after the company won a federal trial against Elon Musk over similar claims. Altman said in November 2025 that OpenAI had completed its first hardware prototypes. The case also lands amid broader concerns about an AI investment bubble driven by rising valuations and intense competition.
What Remedies Is Apple Seeking?
Apple is pursuing damages, injunctions, and a court order requiring OpenAI to stop using the alleged trade secrets. Apple did not comment on whether the lawsuit will affect its existing partnership with OpenAI, which still includes ChatGPT integration within Apple Intelligence.
The outcome could shape how courts handle trade secret claims in the fast-moving AI hardware sector.
FAQ
When did Apple file the lawsuit against OpenAI?
Apple filed the lawsuit on July 10, 2026, in the U.S. District Court for the Northern District of California.
Who are the defendants in Apple’s lawsuit?
The defendants are OpenAI, hardware chief Tang Tan, former Apple employee Chang Liu, and IO Products, the startup acquired by OpenAI for $6.4 billion.
What is OpenAI’s position on the allegations?
OpenAI rejected the allegations, saying it has no interest in other companies’ trade secrets and remains focused on building innovative technology.