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Apple Sues OpenAI and Hardware Chief Tang Tan for Alleged Trade Secret Theft to Build Competing Devices

Published
Score
17

Why it matters

Apple filed a federal lawsuit on July 10, 2026, alleging that OpenAI and its chief hardware officer Tang Tan orchestrated a systematic campaign to steal confidential trade secrets related to unreleased Apple products. According to the complaint, OpenAI encouraged former Apple employees and job candidates to share components, drawings, and internal product information to accelerate OpenAI's own hardware development efforts.

The lawsuit centers on whether OpenAI deliberately solicited proprietary information from people it was recruiting or interviewing. Apple is seeking an injunction to prevent OpenAI from using the stolen data in its hardware designs and has indicated the case will proceed as a multiyear jury trial. The specific details of what information was transferred and the full scope of OpenAI's alleged solicitation remain unclear from public filings.

This dispute escalated after Apple's private outreach failed. In February 2026, Apple contacted OpenAI requesting it cease accepting information from former employees and interviewees. When OpenAI did not respond, Apple moved to litigation. The case matters because it tests intellectual property protections as AI companies expand into hardware—a direct threat to Apple's device business. A judgment against OpenAI could significantly delay or reshape its hardware rollout and establish precedent for how trade secret law applies to cross-company recruitment in the AI sector.

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