Apple has filed a federal lawsuit against OpenAI, accusing the AI company of running a coordinated campaign to steal confidential hardware plans through current and former Apple employees.
Apple filed the suit on Friday, July 10, 2026, in the U.S. District Court for the Northern District of California. The complaint alleges that OpenAI systematically solicited and obtained Apple’s trade secrets as it develops its own consumer hardware device — one widely expected to compete with the iPhone.
What Apple Is Alleging
According to Apple’s filing, the misconduct extended from OpenAI’s rank-and-file technical staff up to its senior leadership, and involved coordination with outside business partners. The lawsuit names OpenAI, its hardware unit io Products, and two individuals as defendants: Chief Hardware Officer Tang Tan and former Apple engineer Chang Liu.
Tang Tan, a 24-year Apple veteran who most recently served as vice president of product design for the iPhone and Apple Watch before joining OpenAI, is accused of using Apple’s internal project code names during recruiting interviews to draw out more proprietary information from job candidates who still worked at Apple. Apple’s complaint says Tan directed candidates to bring physical Apple components — including batteries, logic boards, and system-in-package parts — to interviews for “show and tell” sessions. He is also accused of circulating an internal Apple offboarding document to help new OpenAI hires avoid the company’s exit security checks.
Chang Liu, a former senior electrical engineer at Apple, is accused of keeping a work-issued Apple laptop after leaving the company and using a security flaw to access Apple’s cloud file storage, allegedly downloading confidential technical documents after his departure.
Apple also alleges that OpenAI had one of its manufacturing partners demonstrate a proprietary Apple metal-finishing technique, claiming OpenAI misled the partner into believing it had Apple’s permission to do so.
The filing states that Apple first raised these concerns directly with OpenAI in February 2026 and asked the company to investigate, but says OpenAI never responded. Apple’s complaint describes the alleged conduct as “the tip of the iceberg” and argues that OpenAI’s hardware business is now built on misappropriated trade secrets.
What Apple Is Seeking
Apple is asking the court to:
- Bar OpenAI from using or disclosing its trade secrets
- Require OpenAI to return any confidential Apple materials
- Preserve evidence connected to the case
- Grant a jury trial
Some reporting also indicates Apple is seeking a redesign of OpenAI’s forthcoming hardware product.
OpenAI’s Response
An OpenAI spokesperson denied the allegations in a statement to reporters: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
The Backdrop
The lawsuit marks a sharp reversal in the relationship between the two companies. Apple and OpenAI have an active partnership that integrates ChatGPT into Apple Intelligence and iOS, and it’s unclear whether the legal fight will affect that arrangement — Apple has not commented on the question.
OpenAI has not officially detailed its hardware plans, but the company is widely reported to be building a consumer device, with OpenAI’s chief global affairs officer saying at Davos in January that it would launch in the first half of 2026. Industry analyst Ming-Chi Kuo has suggested the device could be a smartphone built around AI agents rather than traditional apps — a potential direct challenge to the iPhone.
OpenAI’s hardware push is led in large part by Jony Ive, Apple’s former chief design officer, whose hardware startup io was acquired by OpenAI last year in a deal reportedly worth $6.5 billion. Notably, Ive himself is not named as a defendant in Apple’s complaint, even though io Products is.
The case also lands at a sensitive moment for OpenAI, which is reportedly preparing for a highly anticipated IPO, and comes about two months after OpenAI won a separate high-profile trial against Elon Musk over claims related to the company’s nonprofit origins.
Source
Apple sues OpenAI alleging trade secret theft, says scheme was ‘at every level’ — CNBC
This is a developing legal story. Details may be updated as court proceedings continue.
