Apple Files Lawsuit Against OpenAI Accusing Trade Secret Theft
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Apple filed a lawsuit against OpenAI on July 10, 2026, in the U.S. District Court for the Northern District of California, accusing the AI lab of trade secret theft and breach of contract. At the center of the case lies OpenAI’s systematic employee transfer from Apple and the acquisition of the company’s confidential technologies.
Key Allegations
According to Apple’s allegations, OpenAI’s senior leadership, particularly Chief Hardware Officer Tang Tan, directed this conduct. Tan had worked at Apple for 24 years, most recently as Vice President of Product Design for iPhone and Apple Watch.
The allegations in the complaint include:
- OpenAI used Apple’s secret project code names during its hiring process
- Job candidates were asked to bring Apple hardware components to their interviews
- Departing Apple employees were coached on how to evade the company’s security procedures
- Details about unannounced Apple products were requested
Additionally, Apple alleges that Chang Liu, who spent eight years at Apple as a senior systems electrical engineer, failed to return an Apple-issued laptop when leaving for OpenAI in 2026 and used that computer to download confidential Apple technical documents.
Hardware Competition
These allegations come amid rumors that OpenAI is developing its first hardware product. Industry analyst Ming-Chi Kuo suggested in April that this device could be a smartphone that relies on AI agents instead of apps. If true, this would represent one of the greatest 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. io was named in the filing, but Ive was not.
Apple’s Official Statement
Apple said in a statement: “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’s Response
OpenAI said in a statement on X: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
Demands and Potential Impacts
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. The filing states: “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, and OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”
This lawsuit also increases legal risks for OpenAI at a time when it’s unclear when and what type of hardware products it will announce, and as the AI lab prepares for a record-breaking IPO.