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Apple sues OpenAI and two ex-employees for stealing trade secrets to build AI hardware

Published
Score
20

Why it matters

Apple sued OpenAI and two former Apple employees on Friday, July 10, 2026, in the U.S. District Court for the Northern District of California, alleging coordinated theft of trade secrets to accelerate OpenAI's consumer hardware development. The complaint names Chang Liu and Tang Tan as defendants and accuses OpenAI of orchestrating a campaign to recruit Apple staff and extract confidential project information, including technical drawings and component specifications. Apple alleges that Tan, while still employed there, used insider knowledge of confidential projects to extract proprietary information from job candidates during OpenAI interviews before his departure.

The lawsuit follows a February 2026 cease-and-desist letter from Apple demanding OpenAI stop using former employees to access confidential data. OpenAI did not respond, prompting the filing. The specific technical details of what information was allegedly taken remain under seal. The case seeks injunctive relief and damages, with Apple asking the court to force OpenAI to redesign its hardware without using Apple's proprietary information.

The suit represents a sharp break from Apple's prior partnership with OpenAI, which included integrating ChatGPT into Siri. For attorneys tracking competitive intelligence disputes and trade secret litigation, this case matters because it signals how aggressively tech companies will now litigate hardware development races. The outcome could significantly delay OpenAI's hardware launch and establish important precedent on what constitutes actionable misappropriation when former employees move between competitors in the AI space. Expect this to be a protracted fight with substantial damages exposure on both sides.

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