Apple Sues OpenAI, Alleging Theft of Trade Secrets

Apple has filed a lawsuit against OpenAI, the maker of ChatGPT, accusing the company of orchestrating a systematic scheme to steal confidential trade secrets related to Apple’s unreleased hardware technologies. The complaint, filed on July 10 in the U.S. District Court for the Northern District of California, names OpenAI, its hardware subsidiary io Products, and two former Apple employees as defendants, marking a dramatic escalation in tensions between two of the world’s most valuable technology companies.

The Allegations

According to MacRumors, Apple’s lawsuit alleges that OpenAI engaged in a coordinated effort to poach Apple employees and direct them to steal confidential information covering unreleased hardware technologies, components, manufacturing processes, and supplier relationships. The complaint describes a “pattern of theft” that Apple says has been “normalized and exemplified by leadership” at OpenAI.

“At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously,” an Apple spokesperson said in a statement to 9to5Mac. “Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products.”

The lawsuit claims that OpenAI’s hardware division “now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”

Key Defendants

The suit names Tang Yew (Tang) Tan, a former Apple Vice President of Product Design who led iPhone and Apple Watch design before departing in February 2024. Tan now serves as OpenAI’s Chief Hardware Officer and co-founder of io Products. He is accused of using his insider knowledge of Apple’s confidential projects to extract information from job candidates during interviews, including directing candidates still employed at Apple to bring actual hardware components — referred to as “Actual parts” — to interviews for “show and tell” sessions.

Chang Liu, a former Apple senior system electrical engineer who joined OpenAI in January 2026 after eight years at Apple, is also named. Apple alleges that Liu kept an Apple-issued laptop after departing, exploited an authentication vulnerability to download “dozens of Apple’s confidential hardware-related files,” and maintained contact with an Apple employee who continued providing him with confidential updates. When Liu discovered he still had access to Apple’s network storage, he reportedly texted the employee: “LOL, I found out I can access the [network storage], so funny.”

Notably, former Apple Chief Design Officer Jony Ive — who now leads OpenAI’s hardware efforts through io Products, which OpenAI acquired for $6.5 billion in 2025 — is not personally named as a defendant. OpenAI CEO Sam Altman is referenced in the complaint but also not named as a defendant.

Supplier Deception

Apple further alleges that OpenAI used confidential Apple hardware information when approaching Apple’s suppliers. The Guardian reports that Apple claims OpenAI tricked one supplier into using a “specific trade secret metal-finishing technique” for an OpenAI device by falsely claiming it had Apple’s permission. OpenAI also allegedly approached a second longtime Apple supplier using insider terminology to ask “targeted questions” about specific Apple components.

OpenAI’s Response

OpenAI has denied the allegations. Drew Pusateri, Director of Strategic Communications at OpenAI, said in a statement reported by 9to5Mac: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”

Background: A Strained Partnership

The lawsuit represents a stunning reversal for the two companies, which announced a landmark partnership in June 2024 to integrate ChatGPT into Apple’s operating systems for Siri. However, tensions have been building. At WWDC 2026 in June, Apple showcased a revamped Siri powered by Google’s Gemini AI model rather than ChatGPT, signaling a strategic pivot. Bloomberg had previously reported that OpenAI was considering legal action against Apple over the partnership’s performance.

Apple is also facing legal challenges on multiple fronts. The company is currently defending against a separate trade secret lawsuit from hardware startup iyO, which has accused OpenAI and io Products of misappropriating its technology. A federal court issued a preliminary injunction against OpenAI in April 2026 barring use of the “io” name in that case.

What’s at Stake

Apple is seeking an injunction to prevent OpenAI from possessing, using, or disclosing its technologies, as well as unspecified damages. The lawsuit could significantly disrupt OpenAI’s reported plans to launch a smartphone by 2028 and other consumer hardware devices. With more than 400 former Apple employees now working at OpenAI according to the filing, the case also highlights the broader tension in Silicon Valley between employee mobility and the protection of corporate intellectual property.

The legal battle is expected to be closely watched as one of the most significant trade secret disputes in the tech industry’s history, pitting two of the world’s most valuable companies against each other in a fight that could reshape the competitive landscape of AI hardware.