Apple Sues OpenAI Over Alleged Trade-Secret Theft

On July 10 2026, Apple filed a complaint in the U.S. District Court for the Northern District of California accusing OpenAI, its hardware subsidiary io Products, and two former Apple engineers—Tang Yew Tan and Chang Liu—of misappropriating Apple’s confidential hardware information. The filing alleges that OpenAI orchestrated a coordinated campaign to obtain Apple’s unreleased product designs, manufacturing processes and supplier data to accelerate its own consumer-hardware program. Apple seeks a preliminary injunction to halt the alleged use of its trade secrets, the return or destruction of all proprietary materials, and unspecified damages.

Interesting EngineeringApple accuses OpenAI of stealing secrets to fast-track its hardware ambitionsApple Sues OpenAI, Alleges Systematic Theft of Hardware Trade Secrets — BigGo Finance

Apple and OpenAI began a public partnership in 2024, integrating ChatGPT into Apple’s “Apple Intelligence” features and allowing Siri to surface ChatGPT results. The collaboration soured as OpenAI announced a multibillion-dollar acquisition of the design startup io Products—co-founded by former Apple chief design officer Jony Ive—in 2025 and signaled plans to launch AI-centric devices that could compete with the iPhone. Analysts note that both firms now view each other as rivals in the emerging AI-device market.

BloombergApple sues OpenAI, alleging trade secret theft in blockbuster Big Tech battleAs Apple filed a lawsuit against OpenAI for theft of trade secrets, the two once artificial intellig. .

• Apple Inc. – the iPhone maker alleging trade-secret theft.

Engadget

• OpenAI – the artificial-intelligence company developing ChatGPT and pursuing hardware.

Apple sues OpenAI, alleging trade secret theft in blockbuster Big Tech battle

• Tang Yew Tan – former Apple vice-president of product design for the iPhone and Apple Watch; now OpenAI’s chief hardware officer.

BBC News

• Chang Liu – former senior system electrical engineer at Apple; joined OpenAI in January 2026.

Bloomberg

• io Products – hardware startup acquired by OpenAI for $6.5 billion in 2025.

As Apple filed a lawsuit against OpenAI for theft of trade secrets, the two once artificial intellig. .

• Over 400 former Apple employees are now employed by OpenAI, according to the complaint.

The Verge

• $6.5 billion was the reported price of OpenAI’s acquisition of io Products.

Apple sues OpenAI, alleging trade secret theft in blockbuster Big Tech battle

• The lawsuit cites dozens of confidential Apple files downloaded by Liu and multiple instances of “show-and-tell” sessions where Tan asked interviewees to bring actual Apple parts.

Euronews

The case pits two of the world’s most valuable tech firms against each other in a battle over the next generation of consumer computing. If Apple succeeds, OpenAI may be barred from using any Apple-derived designs, potentially delaying its hardware rollout and affecting its upcoming IPO. Conversely, a dismissal could embolden other AI firms to recruit talent from established hardware companies, reshaping talent-poaching norms in Silicon Valley.

Reuters

Apple’s legal team said the company “cannot tolerate the theft of its trade secrets” and that it will “always defend our teams’ hard work and innovations.” OpenAI’s spokesperson responded that the company “has no interest in other companies’ trade secrets” and remains “focused on building innovative technology that empowers people everywhere.” Both parties declined to comment further on the specific allegations.

Apple Sues OpenAI for Trade Secrets Theft

Industry observers warn that the lawsuit could impede OpenAI’s hardware timeline, even if the claims are not ultimately proven. Analyst Paolo Pescatore of PP Foresight noted that Apple perceives OpenAI as shifting from “partner to potential rival,” while OpenAI seeks to reduce its dependence on the iPhone.

Interesting EngineeringReutersApple sues OpenAI, alleging trade secret theft in blockbuster Big Tech battle

The complaint provides detailed accounts of Liu’s alleged use of an authentication bug and Tan’s “show-and-tell” requests, yet OpenAI has not publicly disclosed the nature of its hardware projects, leaving the extent of any actual reliance on Apple information unclear. No independent verification of the alleged supplier-finishing technique has been presented.

Apple Sues OpenAI, Alleges Systematic Theft of Hardware Trade Secrets — BigGo Finance

• “Apple sees OpenAI moving from partner to potential rival, while OpenAI is trying to reduce its dependence on the iPhone and build a direct relationship with consumers.” — Paolo Pescatore, Analyst, PP Foresight

Interesting Engineering

• “OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.” — Apple complaint

Apple Sues OpenAI, Alleges Systematic Theft of Hardware Trade Secrets — BigGo Finance

• “That OpenAI now employs people who were once entrusted with Apple’s trade secrets does not entitle OpenAI to use that information to jumpstart its hardware efforts,” — Apple complaint

Reuters

• “We have no interest in other companies' trade secrets.” — Drew Pusateri, OpenAI spokesperson

BBC News

• “We remain focused on building innovative technology that empowers people everywhere.” — Drew Pusateri, OpenAI spokesperson

Apple Sues OpenAI for Trade Secrets Theft

• “LOL, I found out I can access the [network storage], so funny.” — Chang Liu, internal message cited in the complaint

Apple Sues OpenAI Over Trade Secret Theft, Exposing the Legal Limits of Silicon Valley's Talent Wars — Glitchwire