Apple Files Trade Secret Lawsuit Against OpenAI Over Hardware Push
News Summary
Apple has filed a lawsuit against OpenAI and two former Apple employees, alleging a coordinated scheme to misappropriate confidential hardware technology as OpenAI expands into consumer devices. The complaint, submitted to the U.S. District Court for the Northern District of California on Friday, July 10, 2026 (Pacific Time), names OpenAI Foundation, OpenAI Group PBC, io Products, and former Apple engineers Chang Liu and Tang Yew Tan as defendants.
What the Lawsuit Alleges
Apple's filing states that the alleged scheme operated "at every level" of OpenAI's organization, from members of its technical staff up to its chief hardware officer. The complaint describes a pattern in which OpenAI representatives allegedly encouraged Apple employees interviewing for positions at OpenAI to bring proprietary information and physical components with them.
According to the filing, Tang Yew Tan, a former Apple vice president of product design who worked on the iPhone and Apple Watch before joining OpenAI as its hardware lead, allegedly directed job candidates who were still employed at Apple to bring "actual parts" to interviews for so-called "show and tell" sessions. Apple also alleges that Tan used his insider knowledge of Apple's unreleased projects to question candidates in ways designed to extract additional confidential details.
Separately, Apple alleges that Chang Liu, a former senior systems electrical engineer who spent eight years at the company, failed to return an Apple-issued laptop after departing for OpenAI earlier in 2026. Apple claims Liu used that laptop to download confidential technical documents before leaving.
Scope of the Claims
The lawsuit describes a broad and coordinated effort to obtain Apple's trade secrets, including material related to product design, manufacturing processes, and supply chain strategy. Apple's complaint notes that more than 400 former Apple employees currently work at OpenAI, a detail the company cites as context for the scale of its concerns about information flow between the two organizations.
Background on the Apple-OpenAI Relationship
Apple and OpenAI became close partners in 2024, when ChatGPT was integrated directly into the iPhone's operating system as part of Apple's broader AI strategy. That relationship has reportedly cooled since OpenAI signaled its ambitions to enter the consumer hardware market. In 2025, OpenAI acquired io Products, a hardware startup founded by former longtime Apple chief design officer Jony Ive, in a deal reported to be worth roughly $6.4 billion.
Apple's upcoming redesign of Siri, expected to launch this fall, is built on AI models from Google's Gemini family rather than OpenAI's technology, reflecting a broader diversification of Apple's AI partnerships.
Industry Context
The case highlights ongoing tension in the technology industry as major companies compete for AI and hardware talent while also racing to build next-generation consumer devices. Trade secret disputes of this kind are closely watched by the broader tech and legal communities, as they can shape how companies structure hiring practices, non-disclosure agreements, and employee offboarding procedures. Neither OpenAI nor io Products has issued a detailed public response to the specific allegations as of this report.