Apple Sues OpenAI Over Trade Secret Theft, Calls Hardware Business 'Rotten to Its Core'

Apple filed a lawsuit against OpenAI on July 10, 2026, in the U.S. District Court for the Northern District of California, accusing the AI company of stealing trade secrets about products still in development. The complaint alleges that OpenAI asked job candidates from Apple to share confidential details and bring device components and prototypes to interviews.

According to the lawsuit, an OpenAI employee downloaded internal documents from an Apple-owned laptop that had not been returned after the employee left the company. Apple also claims OpenAI used the stolen information to approach Apple's manufacturing partners, including asking one partner to demonstrate Apple's proprietary metal finishing technique under false pretenses.

Former Apple Executives at Center of Allegations

The lawsuit names Tang Tan, OpenAI's chief hardware officer and a former Apple executive, as a key figure. Apple alleges Tan coached new hires from Apple on how to evade the company's security processes for departing employees. Another former Apple employee, Chang Liu, is accused of using a former colleague's laptop to access and download technical documents while working at OpenAI. Liu allegedly told that colleague what information about unannounced products she should study before job interviews.

Apple sent a letter to OpenAI in February 2026 raising concerns that confidential information was "making its way to OpenAI's business improperly," according to the suit. OpenAI did not respond. The lawsuit also names io Products, the hardware company led by former Apple design chief Jony Ive, as a related party.

• Apple seeks an injunction preventing OpenAI from possessing, using, or sharing Apple's trade secrets.
• Apple also demands an order requiring OpenAI to return all stolen intellectual property.
• The lawsuit accuses OpenAI of misleading a manufacturing partner into believing it had Apple's permission to view the metal finishing technique.
• Apple's complaint states that "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."

Broader Implications for AI Hardware Competition

The lawsuit escalates tensions between two tech giants racing to dominate AI hardware. OpenAI has been building a hardware division, reportedly working on custom AI chips and devices. Apple, which has its own AI chip efforts and a massive hardware ecosystem, views OpenAI's moves as a direct threat. The case could set a precedent for how companies protect trade secrets when employees move to competitors in the fast-moving AI sector.

Legal experts say Apple's detailed allegations of coaching and document theft strengthen its case, but OpenAI is likely to argue that the information was not truly secret or that it independently developed its hardware. The court will next consider Apple's request for a temporary restraining order. A hearing is expected within weeks.