Apple sues OpenAI alleging trade secret theft at every level
Apple sues OpenAI in federal court in Northern California, alleging a coordinated, months-long scheme to steal trade secrets tied to unreleased products, manufacturing processes, and consumer hardware development. Filed July 10, 2026, the lawsuit marks a sharp break from the companies' 2024 Siri partnership and seeks damages plus injunctions.
In a complaint filed in the U.S. District Court for the Northern District of California, Apple accused the ChatGPT maker of misappropriating intellectual property to build its own hardware device. Apple said significant evidence emerged that individuals employed by OpenAI wrongfully took secret and confidential information regarding unreleased technologies, processes, and products, according to CNBC.
"This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information," Apple said in the filing.
Key Takeaways
- Apple filed suit Friday alleging OpenAI stole trade secrets to accelerate a consumer hardware push.
- Former Apple executives Tang Tan and Chang Liu are named as defendants alongside OpenAI.
- Apple says it warned OpenAI in February 2026 and received no response before suing.
- The case targets hardware-related secrets, not Apple's separate ChatGPT-in-Siri partnership.
- Apple is seeking damages, injunctions, and an order forcing OpenAI to stop using its confidential information.
Why Did Apple Sue OpenAI Now?
Apple said it first raised concerns directly with OpenAI in February after uncovering evidence of a months-long scheme. When the AI lab did not respond, Apple investigated further and concluded the conduct described in the filing was "the tip of the iceberg," according to reports citing the complaint.
The iPhone maker alleges OpenAI turned to trade secret misappropriation to free-ride off Apple's decades of innovation rather than invest in legitimate hardware development. OpenAI faces pressure to debut a physical AI device, with its chief global affairs officer Chris Lehane signaling at Davos in January that hardware would arrive in the first half of 2026.
Who Does Apple Accuse of Stealing Trade Secrets?
The complaint names OpenAI and two former Apple employees: Tang Tan, OpenAI's chief hardware officer and former Apple vice president who led iPhone and Apple Watch design, and Chang Liu, a former senior electrical engineer who joined OpenAI in January 2026.
Apple alleges Tan directed job candidates still at Apple to share confidential details during interviews and bring hardware components for "show and tell" sessions. Tan is also accused of circulating an internal Apple offboarding document to new OpenAI hires before they resigned, coaching them on how to evade Apple's security processes.
Apple further alleges Liu kept a work-issued laptop after leaving and exploited a bug to access Apple's cloud file storage while employed by OpenAI. The suit describes a broader pattern of recruits emailing themselves confidential information upon departure.
What Could This Lawsuit Mean for AI Hardware Rivals?
Beyond individual hires, Apple accuses OpenAI of approaching its trusted manufacturing partners with confidential Apple information while developing its hardware device. The filing alleges OpenAI misled one partner into demonstrating a trade secret metal-finishing technique by falsely claiming it had Apple's permission, as reported by Bloomberg.
The dispute represents a sharp reversal for two companies that entered a high-profile partnership in 2024 to integrate ChatGPT into Siri. Bloomberg had reported earlier in 2026 that OpenAI was preparing its own legal action over that arrangement; Apple's filing says the partnership itself is not at issue in this case.
For investors tracking Big Tech litigation and AI infrastructure bets, the case underscores how hardware ambitions are becoming a new legal battleground. Follow more developments in our Fintech & Crypto Alerts section.
What Relief Is Apple Seeking?
Apple is asking the court for damages, injunctive relief, and an order requiring OpenAI and the named defendants to stop possessing, using, or disclosing its trade secrets. The company also seeks preservation and return of Apple materials and damages for loss caused by trade secret misappropriation and breach of contract violations tied to Tan and Liu's employment agreements.