Apple sues OpenAI over alleged trade secret theft

What happened

Apple filed a federal lawsuit against OpenAI in Northern California on July 10, 2026, alleging a systematic campaign to steal trade secrets targeting technology for its own AI hardware. This is a stark reversal for two companies that entered a high-profile partnership in 2024.

Context and impact

OpenAI is currently developing its first consumer devices, which could directly compete with the iPhone. The lawsuit suggests access to Apple know-how was key to this project. The case may set precedent for IP protection when employees transition between rival AI firms. Apple seeks damages, an injunction, and an order to stop using its trade secrets.

Details

• Tang Tan (OpenAI Chief Hardware Officer, former 24-year Apple VP of product design) allegedly directed the entire scheme
• Job candidates were asked to bring Apple hardware components to interviews
• Tan allegedly coached departing Apple employees on how to evade Apple's security procedures
• Chang Liu (8-year Apple senior systems electrical engineer) allegedly kept his company MacBook and downloaded confidential technical documents
• Allegations suggest a scheme operating 'at every level' of OpenAI's organization