Apple Sues OpenAI Over Trade Secret Theft Claims

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Apple and OpenAI logos facing off like legal opponents

By NewSunSEO July 13, 2026

Apple sued OpenAI in the U.S. District Court for the Northern District of California on July 10, 2026, accusing the AI company and its hardware chief Tang Tan of orchestrating a scheme to steal trade secrets and confidential information tied to Apple’s hardware development. The complaint names OpenAI, Tan, former Apple employee Chang Liu, and IO Products, the $6.4 billion startup OpenAI acquired, as defendants.

What did Apple allege?

An Apple representative stated that “significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information.” According to the complaint, the alleged activity occurred at multiple levels of OpenAI, including members of its technical staff and hardware leadership.

How did the Apple-OpenAI relationship sour?

Relations between Apple and OpenAI deteriorated after a high-profile 2024 partnership that integrated ChatGPT into the iPhone operating system. OpenAI CEO Sam Altman visited Apple’s headquarters for that announcement. Tensions later escalated when OpenAI announced plans to enter the hardware industry and acquired IO Products, a startup founded by former Apple designer Jony Ive, for $6.4 billion.

Apple’s updated Siri assistant is now based on Google’s Gemini AI models rather than OpenAI’s technology. The legal filing describes a shift from collaboration to direct competition, with Apple alleging that OpenAI used the partnership as cover to extract proprietary information.

What specific conduct is Apple targeting?

The complaint details a months-long scheme involving former Apple employees now at OpenAI. Apple alleges that Tang Tan, a former Apple vice president who now leads hardware at OpenAI, directed Apple job candidates to bring “actual parts” from Apple to their interviews for “show and tell” sessions. The suit claims OpenAI coached departing employees on how to evade Apple’s security processes.

Former Apple employee Chang Liu is accused of stealing an Apple laptop. Apple further alleges that OpenAI asked hardware firms to use a proprietary metal finishing technique while “misleading the partner to believe they had Apple’s permission to do so.” The company characterized the alleged scheme as “rotten to its core.”

How has OpenAI responded?

A representative for OpenAI denied the allegations, stating, “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that helps people everywhere.”

The lawsuit comes as OpenAI prepares for an initial public offering, and roughly two months after it won a federal trial against Elon Musk over similar claims. Altman said in November 2025 that OpenAI had completed its first hardware prototypes. The case highlights wider concerns in the AI sector, where rising valuations and intense competition have fueled debate about a potential investment bubble.

What remedies is Apple seeking?

Apple is seeking damages, injunctions, and an order requiring OpenAI to stop using the alleged trade secrets. The company declined to comment on whether the lawsuit will affect its existing partnership with OpenAI, which includes ChatGPT integration into Apple Intelligence. The case could set a precedent for trade secret protection in the rapidly evolving AI hardware market.

FAQ

When and where did Apple file the lawsuit against OpenAI?

Apple filed the lawsuit on July 10, 2026, in the U.S. District Court for the Northern District of California.

Who are the named defendants in the case?

The defendants are OpenAI, its hardware chief Tang Tan, former Apple employee Chang Liu, and IO Products, the startup OpenAI acquired for $6.4 billion.