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Apple sues OpenAI, alleging coordinated trade secret theft for AI hardware

Published
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25

Why it matters

On July 10, 2026, Apple filed a federal lawsuit in the Northern District of California against OpenAI, former Apple executives Tang Tan and Chang Liu, and io Products, LLC, alleging a coordinated scheme to steal trade secrets and accelerate OpenAI's entry into consumer hardware. The complaint accuses OpenAI of systematically acquiring confidential Apple information—including product designs, manufacturing processes, and supply chain strategies for the iPhone, Apple Watch, and MacBook—to build competing AI devices.

Apple names Tang Tan, formerly its VP of Product Design and now OpenAI's Chief Hardware Officer, and electrical engineer Chang Liu as the architects of the alleged theft. The company claims OpenAI encouraged job candidates to bring Apple prototypes and components to interviews, disclosed unreleased product details to third parties, and deceived Apple's manufacturing partners by falsely claiming Apple approval to access proprietary metal finishing technologies. The filing notes that over 400 former Apple employees currently work at OpenAI. The specific scope of the alleged misappropriation and OpenAI's formal response remain undisclosed.

The lawsuit marks a sharp escalation following months of tension between the companies. Apple and OpenAI had partnered to integrate ChatGPT into Siri before the relationship fractured. In February 2026, Apple demanded OpenAI cease recruiting employees with access to confidential information; OpenAI did not respond. Apple is seeking an injunction to force destruction of confidential materials and redesign of OpenAI's hardware to exclude Apple technologies. The case will likely turn on whether Apple can prove OpenAI's institutional knowledge of and encouragement for the alleged conduct—a high bar in trade secret litigation. Attorneys should monitor discovery for evidence of internal OpenAI communications and hiring directives, as well as any settlement discussions that might signal broader industry norms around talent acquisition in AI.

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