Apple Sues OpenAI Over Alleged Trade Secret Theft

Apple filed a lawsuit on July 10, 2026, in the U.S. District Court for the Northern District of California, accusing OpenAI of stealing its confidential trade secrets to speed up development of its own artificial intelligence devices. The complaint alleges the conduct ran “at every level,” from engineers to the executive in charge of hardware, and Apple is seeking damages, an injunction and an order barring OpenAI from further using what it regards as its intellectual property.

Two companies that were partners until recently now sit on opposite sides. Apple and OpenAI struck a deal in 2024 to integrate language models into Apple’s devices, but the relationship cooled once OpenAI moved into hardware. Last year OpenAI paid $6.4 billion for io Products, the startup founded by Jony Ive, Apple’s former chief designer. That deal turned the two firms from collaborators into direct rivals in consumer electronics.

What exactly does Apple allege?

The suit names Tang Tan, now OpenAI’s hardware chief and a former Apple vice president. According to the complaint, Tan directed job candidates who were still working at Apple to bring actual device components to interviews at OpenAI for so-called “show and tell” sessions, in which his team allegedly drew out further confidential information. Apple also says Tan forwarded supplier data to his personal email before leaving, and advised incoming hires on how to bypass the security procedures meant for departing employees.

The second person named is Chang Liu, an engineer who, per the complaint, spent eight years at Apple and then failed to return a company laptop after joining OpenAI in 2026. Apple says the machine held confidential technical documents, including specifications, engineering presentations and data on unreleased products and features. It is worth stressing that these remain allegations in a filing that a court has not tested, and the other side disputes them.

Why does this dispute matter?

The clash opens at a moment when the industry’s center of gravity is shifting toward devices designed around artificial intelligence from the ground up. OpenAI has signaled its ambition to build a new hardware category, and Apple’s team has for decades been the reference point for consumer device design and engineering. The departure of experienced Apple people for OpenAI is therefore not only a staffing question but a question of who controls the know-how needed for the next wave of products.

OpenAI, in a brief response, rejected the accusations, saying it has no interest in other companies’ trade secrets. As the case only now enters its court phase, the claims on both sides still need to be backed by evidence, testimony and possibly expert analysis. For now, the only clear thing is that two companies that recently worked together are preparing for a long legal battle whose outcome could shape the rules for specialists moving between technology firms. Do you think the line between legitimate hiring and the theft of know-how in the tech industry is growing thinner?