Apple sues OpenAI over alleged trade secret theft

Apple has filed a lawsuit in the U.S. District Court for the Northern District of California accusing OpenAI of misappropriating trade secrets tied to unreleased hardware products. The complaint, dated July 10, 2026, centers on allegations that confidential Apple information was taken and used as OpenAI develops its own consumer hardware devices.

Named defendants in the case are OpenAI, former Apple vice president of product design Tang Yew Tan (also known as Tang Tan), former Apple engineer Chang Liu, and io Products. Apple contends that these parties participated in or benefited from access to proprietary hardware-related information that Apple considers core intellectual property.

Apple alleges that Chang Liu left the company in January 2026 to join OpenAI but did not complete standard offboarding steps. The complaint says Liu failed to return a company-issued work laptop and did not respond to attempts to confirm the return of Apple devices or to participate in an exit interview.

According to the lawsuit, Liu discovered a bug that enabled access to Apple’s cloud file storage and, while employed at OpenAI, used that access to obtain confidential material. Apple claims Liu accessed and downloaded dozens of hardware-related files, including detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data.

Apple’s filing also focuses on alleged conduct by Tang Tan, now OpenAI’s chief hardware officer and previously a senior product design leader at Apple. The complaint states that Tan instructed job candidates who were still working at Apple to bring actual Apple components, such as batteries, logic boards, and other parts, to OpenAI interviews for show-and-tell style sessions.

The suit further alleges that Tan retained or circulated an internal Apple offboarding or “Need to Know” document. Apple says this material was used to advise prospective hires on how to avoid Apple’s exit security checks, potentially facilitating the transfer of confidential information.

Apple states that it raised its concerns with OpenAI in February 2026, after beginning an internal investigation into the alleged conduct. The company says it did not receive a response and continued its inquiry, ultimately deciding to file the July 10 complaint seeking legal remedies.

In the lawsuit, Apple requests injunctions, the return of all allegedly misappropriated materials, and monetary damages. The dispute marks a sharp turn from the companies’ 2024 announcement of a partnership to integrate ChatGPT into Apple products, and comes as Apple alleges that OpenAI has been building a consumer hardware effort using improperly obtained confidential information.