Apple filed a lawsuit against OpenAI on July 10, 2026, in the U.S. District Court for the Northern District of California, accusing the company of orchestrating a scheme to steal confidential Apple hardware secrets through two former Apple employees.
The complaint names OpenAI Foundation, OpenAI Group PBC and io Products as corporate defendants, alongside two individuals: Tang Yew Tan, OpenAI’s chief hardware officer and a 24-year Apple veteran who previously led product design for the iPhone and Apple Watch, and Chang Liu, a former senior systems electrical engineer who spent eight years at Apple before joining OpenAI in 2026.
Apple alleges Liu failed to return an Apple-issued laptop after his departure and used it to download confidential technical documents, engineering presentations and details about unreleased products. The company also claims Tan directed Apple employees interviewing at OpenAI to bring physical Apple hardware components to their interviews for “show and tell” sessions, and coached departing staff on how to remove confidential material without detection. Apple further alleges OpenAI used one of its proprietary metal-finishing techniques without authorization.
According to the filing, Apple sent OpenAI a cease-and-desist letter in February 2026 and received no response before filing suit.
OpenAI denies wrongdoing
An OpenAI spokesperson said the company has “no interest in other companies’ trade secrets” and remains “focused on building innovative technology that empowers people everywhere.”
From partners to rivals
The lawsuit marks a sharp reversal in the companies’ relationship. Apple integrated ChatGPT into iPhone’s operating system in 2024, and OpenAI acquired Jony Ive’s hardware design studio io for $6.5 billion in 2025 as it pushes to build its own consumer AI device — reportedly a screen-free, AI-native gadget. Apple is asking the court to bar OpenAI from using or disclosing the alleged trade secrets, order the return of any confidential materials, and require the company to preserve related evidence.