Apple sues OpenAI over alleged trade secret theft linked to AI hardware plans
Apple has filed a lawsuit against OpenAI, accusing former employees of taking confidential hardware information and trade secrets linked to the company's AI hardware ambitions.
Published By: Shubham Arora | Published: Jul 11, 2026, 04:09 PM (IST)
Apple has sued OpenAI, alleging that former Apple employees took confidential company information with them and that it was later used to support OpenAI's hardware plans. The lawsuit, filed in the US District Court for the Northern District of California, includes allegations of trade secret theft, breach of contract and misuse of Apple's proprietary information.
The lawsuit comes at a time when OpenAI is widely expected to be working on its first AI-powered hardware product. Reports have suggested the company is building a consumer device that could eventually compete with products like the iPhone. Apple believes some of the technologies being used for those efforts are based on confidential information taken from the company.
Apple names former employees in the lawsuit
The complaint specifically names OpenAI Chief Hardware Officer Tang Tan and former Apple engineer Chang Liu. Tan spent nearly 24 years at Apple and worked on products including the iPhone and Apple Watch before joining OpenAI.
According to Apple's filing, Tan allegedly used internal Apple project code names while recruiting engineers from the company. Apple also claims candidates interviewing with OpenAI were encouraged to discuss confidential projects, supplier relationships, engineering processes and even bring hardware components or design materials to interviews.
Chang Liu has also been accused of retaining an Apple-issued laptop after leaving the company and using it to download confidential documents. Apple alleges the files included technical specifications, engineering presentations, project data and details related to unreleased products. The lawsuit further claims Liu shared confidential information with other Apple employees who were considering joining OpenAI and even advised at least one employee on how to prepare for interviews.
Hardware ambitions come under focus
The legal dispute comes as OpenAI continues expanding beyond software. Last year, the company acquired Jony Ive's hardware startup "io" in a deal reportedly worth $6.5 billion. While Ive himself has not been named in Apple's lawsuit, the complaint includes IO Products, the company behind the hardware venture.
Apple also claims OpenAI has tried to gain access to its wider supply chain. According to the lawsuit, one of Apple's manufacturing partners was allegedly asked to use a proprietary metal-finishing process for OpenAI after being led to believe Apple had approved the work.
The company argues that these actions form part of a broader effort to replicate technologies and manufacturing processes that Apple says took years to develop.
Apple and OpenAI respond
Apple said it first contacted OpenAI in February to raise concerns about the alleged misuse of confidential information, but claims it never received a response.
In a statement, Apple said protecting its intellectual property remains a priority and that it will continue taking steps to safeguard technologies developed by its teams.
OpenAI has denied the allegations. In a public statement, the company said it has no interest in using another company's trade secrets and remains focused on building products through its own research and engineering efforts.
Apple is asking the court to prevent OpenAI from using any of its alleged trade secrets, return confidential materials, preserve evidence linked to the case and stop any further disclosure of Apple's proprietary information.
The lawsuit also arrives as competition in AI hardware continues to grow. With OpenAI pushing into consumer devices and Apple investing heavily in AI across its own products, the legal battle could become one of the biggest technology disputes involving intellectual property and next-generation hardware development.
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