Apple Sues OpenAI Over Alleged Trade Secret Theft in Hardware Development
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 and confidential information related to Apple’s hardware development. The complaint alleges the scheme occurred “at every level” of OpenAI, including members of its technical staff and hardware leadership.
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 startup OpenAI acquired for $6.4 billion, as defendants.
What changed after the 2024 partnership?
Relations between the two companies deteriorated after a 2024 partnership that integrated ChatGPT into the iPhone operating system, an announcement made during a visit by OpenAI CEO Sam Altman to Apple’s headquarters. Tensions escalated when OpenAI announced plans to enter the hardware industry and acquired IO Products, a startup founded by former Apple designer Jony Ive, for $6.4 billion.
Apple’s updated Siri assistant is now based on Google’s Gemini AI models rather than OpenAI’s technology. The legal filing describes a shift from collaboration to direct competition, with Apple alleging that OpenAI used the partnership as cover to extract proprietary information.
What does the complaint allege?
Apple describes a months-long scheme involving former Apple employees now at OpenAI. The suit alleges that Tang Tan, a former Apple vice president who now leads hardware at OpenAI, directed Apple job candidates to bring “actual parts” from Apple to their interviews for “show and tell” sessions. Apple also claims OpenAI coached departing employees on how to evade Apple’s security processes.
Former employee Chang Liu is accused of stealing an Apple laptop. Apple further alleges that OpenAI asked hardware firms to use a proprietary metal finishing technique while “misleading the partner to believe they had Apple’s permission to do so.” The company described the alleged scheme as “rotten to its core.”
How has OpenAI responded?
A representative for OpenAI denied 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 comes as OpenAI prepares for an initial public offering and two months after it won a federal trial against Elon Musk over similar claims. Altman said in November 2025 that OpenAI had completed its first hardware prototypes.
What remedies is Apple seeking?
Apple is seeking damages, injunctions, and an order to force OpenAI to stop using the alleged trade secrets. The company did not comment on whether the lawsuit will affect its existing partnership with OpenAI, which includes ChatGPT integration into Apple Intelligence. The outcome could set a precedent for trade secret protection in the AI hardware market.
FAQ
What is Apple accusing OpenAI of?
Apple accuses OpenAI of orchestrating a coordinated campaign to steal trade secrets and confidential information related to Apple’s hardware development, allegedly with involvement from OpenAI’s technical staff and hardware leadership.
Who are the defendants in the 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 specific conduct does the complaint describe?
The complaint alleges Tang Tan directed Apple job candidates to bring “actual parts” from Apple to interviews, that OpenAI coached departing employees to evade Apple’s security processes, that Chang Liu stole an Apple laptop, and that OpenAI asked hardware firms to use a proprietary metal finishing technique while misrepresenting Apple’s permission.