Apple has officially filed a federal lawsuit against OpenAI and its hardware subsidiary, io Products, alleging a systematic campaign to steal confidential trade secrets.
The complaint filed in California on July 10, 2026, claims that OpenAI is using stolen data to accelerate its entry into the consumer hardware market.
Allegations of misconduct
Apple asserts that over 400 of its former employees now work at OpenAI, creating what it describes as a “pattern of theft.”
The lawsuit claims that OpenAI leadership normalized this misconduct, with the filing stating 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.”
Key individuals named
The suit specifically targets two former Apple employees now at OpenAI: Chang Liu and Tang Tan. Liu is accused of keeping a company laptop after the departure and exploiting an authorization bug to download sensitive files.
Tan, OpenAI’s current Chief Hardware Officer, is accused of directing employees to bring proprietary Apple prototypes to job interviews for “show and tell sessions.”
Escalating tensions
This legal action marks a sharp decline in the relationship between the two tech giants who previously partnered to integrate ChatGPT into Apple devices. Apple stated, “We will defend our teams’ hard work and innovations and we are taking all appropriate steps to do so.”
OpenAI’s response
OpenAI has denied the claims 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 company reportedly intends to continue its current hardware development timeline.
