Apple accused OpenAI of stealing trade secrets in a lawsuit filed on July 10, 2026. The company alleges that former Apple employees used stolen confidential information to advance OpenAI's hardware development.
The lawsuit names OpenAI, its chief hardware officer Tang Tan, former Apple engineer Chang Liu, and io Products as defendants. Apple claims a coordinated effort to misappropriate its trade secrets for hardware development.
Apple filed a lawsuit on July 10, 2026, accusing OpenAI of stealing trade secrets to develop its own hardware. The iPhone maker alleges that former Apple employees, now working for the artificial intelligence company, engaged in a coordinated campaign to acquire confidential information about upcoming products and manufacturing processes. The suit names OpenAI, its chief hardware officer Tang Tan, former Apple engineer Chang Liu, and io Products, a hardware startup acquired by OpenAI, as defendants. Apple contends that OpenAI encouraged Apple employees to share proprietary details, components, and designs, forming the basis of its nascent hardware business.
OpenAI acquired io Products, founded by former Apple design chief Jony Ive and Tang Tan, in May 2025 for approximately $6.5 billion. Apple claims that this hardware venture is built on stolen trade secrets, describing OpenAI's business as "rotten to its core by its illegal reliance on misappropriated trade secrets." The lawsuit details allegations against Tang Tan, who Apple states used his insider knowledge of Apple's confidential projects to extract more information during interviews with potential hires. Tan allegedly directed Apple employees interviewing at OpenAI to bring "actual parts" from Apple for "show and tell" sessions.
The complaint also details accusations against Chang Liu, a former senior system electrical engineer at Apple. Apple alleges Liu kept an Apple-issued laptop after his departure and used it to access confidential hardware-related files and detailed manufacturing documents. The lawsuit states Liu exploited a security bug to gain unauthorized access to Apple's internal network and shared folders, texting a former colleague, "LOL," and that it was "so funny" upon discovering the exploit. Apple claims Liu also coached another Apple employee on how to copy confidential information without triggering security alerts and advised her on what materials to study for an OpenAI interview.
Apple stated it began investigating potential compromises of its confidential information and "uncovered a pattern of theft" by former employees now at OpenAI. The company claims it reached out to OpenAI in February 2026 to voice its concerns but received no response, prompting the lawsuit. An Apple spokesperson stated, "At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously."
OpenAI has denied the allegations, with a spokesperson stating, "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." The lawsuit seeks damages and an injunction to prevent OpenAI from using Apple's alleged trade secrets. Apple's legal action comes as OpenAI is reportedly preparing for an initial public offering.