In a dramatic escalation of tensions between two of the tech industry's most influential companies, Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence startup of orchestrating a widespread theft of trade secrets related to hardware development. The legal action, made public on July 10, 2026, marks a significant move by Apple to protect its intellectual property amid growing concerns about the exodus of its engineering talent to competitors.
The complaint, filed in a California federal court, alleges that OpenAI has engaged in a "pattern of theft" that includes the misappropriation of confidential information by employees who previously worked at Apple. Specifically, the lawsuit names Tang Tan, a former Apple hardware executive who now serves as OpenAI's chief hardware officer, and Chang Liu, who joined OpenAI from Apple in January 2026. Additionally, the lawsuit targets IO Products — the hardware startup founded by former Apple design chief Jony Ive, which was acquired by OpenAI in 2025 — and accuses the company of benefiting from stolen secrets.
According to the court documents, Apple uncovered evidence that Liu accessed the company's internal systems after his departure and downloaded dozens of sensitive files, including detailed specifications of unreleased products, engineering presentations, and proprietary project data. The lawsuit claims that Liu went further by instructing a former Apple colleague on how to copy confidential materials and avoid detection by Apple's security team, advising her to use Line Messenger as a communication channel. This alleged behavior, Apple argues, constitutes a clear breach of contract and a deliberate effort to funnel Apple's hard-earned innovations to OpenAI's nascent hardware division.
Tang Tan is accused of a similar pattern of misconduct. Before leaving Apple, Tan allegedly emailed sensitive information about Apple's suppliers to his personal account. The lawsuit further asserts that during his time at OpenAI, Tan has been "methodically using Apple's confidential information to benefit OpenAI," including asking Apple employees during recruitment interviews to share proprietary details about prototypes, CAD designs, and other design artifacts. Apple claims that OpenAI has even encouraged applicants to bring physical prototypes to interviews, a practice the company describes as a systemic effort to replicate Apple's secret technologies and supply chain innovations that took decades to build.
The legal filing also highlights OpenAI's broader strategy of targeting Apple's talent pool. Apple asserts that more than 400 former Apple staffers now work at OpenAI, a figure that underscores the depth of the intellectual property risk. The company accuses OpenAI of advising departing Apple employees to alert the startup if Apple personnel "ask you to sign anything," suggesting an organized effort to circumvent non-disclosure agreements and other contractual protections.
Apple's concerns extend beyond individual employees to OpenAI's direct engagement with Apple's supply chain partners. The lawsuit claims that OpenAI has instructed one of Apple's industrial design partners to perform proprietary metal-finishing processes for OpenAI's benefit, effectively using Apple's trade secret methods without authorization. This, Apple argues, is part of a calculated campaign to shortcut the lengthy and costly process of building a world-class hardware ecosystem.
The tensions between the two companies have been simmering for months. Apple reached out to OpenAI in February 2026 to formally raise its concerns and requested information about any internal investigation into the alleged theft. According to the lawsuit, OpenAI never responded to Apple's inquiry, prompting the tech giant to take legal action. An Apple spokesperson told 9to5Mac: "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. 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. We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so."
OpenAI responded through its spokesperson, Drew Pusateri, who said: "We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere." Apple did not immediately reply to a request for comment from The Verge. The contrasting statements highlight the deepening rift between two companies that once had a cordial relationship. Apple and OpenAI have previously collaborated on integrating AI features into Apple's ecosystem, but the relationship soured as OpenAI aggressively pursued hardware ambitions, particularly through its acquisition of IO Products and the hiring of top Apple hardware talent.
OpenAI's first hardware product is expected to launch next year, and the lawsuit casts doubt on the company's ability to deliver without relying on Apple's proprietary work. In the complaint, Apple states that "OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets." The case could have far-reaching implications for the tech industry, where the movement of talent between companies is common but the boundaries of acceptable information sharing are often tested. Legal experts note that Apple's aggressive defense of its intellectual property is not unprecedented; the company has a long history of pursuing legal action against former employees and competitors accused of stealing trade secrets, including high-profile cases against Samsung and a recent dispute with a former engineer who allegedly shared autonomous vehicle technology.
The lawsuit also raises questions about OpenAI's corporate governance and internal controls. As a private company valued at over $150 billion, OpenAI has been under scrutiny for its rapid growth and its ability to manage the complex intellectual property landscape. The allegations that OpenAI instructed employees to avoid detection by using encrypted messaging apps could lead to additional legal and regulatory challenges. Moreover, the naming of IO Products as a defendant suggests that Apple is targeting not just individuals but the entire corporate structure that benefited from the alleged theft. Jony Ive, the legendary designer who co-founded IO Products, has not publicly commented on the lawsuit, but his company's integration into OpenAI has clearly drawn Apple's ire.
The case is likely to proceed slowly, given the complexity of trade secret law and the volume of evidence involved. Apple has requested an injunction to prevent OpenAI from using any of the alleged stolen information and is seeking damages for the misappropriation. The outcome could set a precedent for how tech companies handle the flow of confidential information in an era of intense competition for AI talent and hardware innovation. Meanwhile, the industry will watch closely as two of its most prominent players face off in court, with implications that extend far beyond the immediate dispute.
Source: The Verge News