Apple sues OpenAI, accusing ChatGPT maker of stealing trade secrets

Apple initiated a significant legal confrontation on Friday, 10 July 2026, by filing a lawsuit in the U.S. District Court for the Northern District of California against OpenAI and two of its key personnel. The complaint alleges that the artificial intelligence firm engaged in a systematic effort to misappropriate Apple’s proprietary trade secrets to accelerate its own ambitions in the consumer hardware sector.

The lawsuit marks a severe fracture in a relationship that had previously seen the two companies collaborate to integrate ChatGPT technology into Apple’s software platforms. However, as OpenAI shifts its focus toward developing physical devices—often described as efforts to move beyond traditional interfaces—Apple claims the company has crossed legal boundaries by poaching talent and coercing them to surrender sensitive internal data.

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Key Defendants and Allegations

Apple’s filing identifies two specific former employees as primary defendants:

• Tang Tan: Formerly an Apple vice president of product design for the iPhone and Apple Watch, Tan now serves as OpenAI’s chief hardware officer. The suit alleges he used his senior position to solicit confidential project codenames during interviews and directed job candidates currently employed at Apple to bring "actual parts" from the company to provide "show and tell" demonstrations for OpenAI leadership.
• Chang Liu: A former senior system electrical engineer at Apple. The lawsuit claims Liu failed to return an Apple-issued laptop upon his departure and subsequently accessed the company’s internal network, downloading voluminous files including technical specifications and engineering presentations.

In addition to the individuals, the suit names io Products, the hardware design firm acquired by OpenAI, as a defendant. Apple argues that the misconduct is not isolated but rather represents an "institutional level" of behavior. According to the complaint, OpenAI’s hardware business currently relies on an "illegal reliance on misappropriated trade secrets," rendering its foundational work unstable.

Escalating Tensions

The litigation follows a period of cooling relations. While the companies once touted a partnership involving the integration of ChatGPT into Siri, Apple shifted its strategic direction recently, opting to use Google’s Gemini models for its Apple Intelligence efforts. Meanwhile, the industry has closely watched OpenAI’s acquisition of io Products, an entity founded by former Apple design luminary Jony Ive, as a sign of the firm's intent to compete directly in the hardware market.

Apple reported that it first attempted to resolve these concerns privately in February, when it reached out to OpenAI to request an internal investigation into the suspected data breaches. According to the filing, OpenAI provided no response. Apple now seeks a jury trial, damages, and a court order requiring OpenAI to destroy any proprietary information and redesign upcoming products to ensure they do not utilize Apple’s intellectual property.

Company Responses and Industry Impact

OpenAI has maintained a concise public stance regarding the allegations. We have no interest in other companies' trade secrets, an OpenAI spokesperson stated. We remain focused on building innovative technology that empowers people everywhere.

Apple, through a spokesperson, reaffirmed its position: We will always defend our teams' hard work and innovations, and we are taking all appropriate steps to do so.

The case arrives at a precarious time for OpenAI, which is reportedly preparing for an initial public offering. Analysts note that a prolonged legal battle could introduce significant regulatory scrutiny and complicate the company’s ability to bring new hardware to market.

What to Watch Next

As the legal process begins, the suit stands as one of the most prominent disputes involving intellectual property and employee mobility within the current technology cycle. The court must now weigh the allegations of systemic theft against the broader climate of talent acquisition that has defined recent competition in the sector.