Apple has taken a significant step against OpenAI, filing a lawsuit on Friday, July 10, 2026, over allegations of trade secret theft and breach of contract. The iPhone maker claims this misconduct is part of a deliberate pattern by OpenAI employees, many of whom previously worked at Apple, and was directed by senior leadership within OpenAI.
The lawsuit, lodged in the U.S. District Court for the Northern District of California, specifically names OpenAI’s Chief Hardware Officer, Tang Tan. Apple alleges that Tan, who spent 24 years at Apple as VP of product design for the iPhone and Apple Watch, engaged in highly questionable practices during OpenAI’s recruitment process.
Allegations Against Key Leadership and Competitive Practices
According to Apple, Tang Tan stands accused of using Apple’s confidential project code names during interviews and even asking job candidates to bring in Apple hardware components. The lawsuit further claims that Tan coached departing Apple employees on how to circumvent the company’s security protocols and probed for details about Apple’s unannounced products.
These serious accusations surface at a pivotal time, as OpenAI is widely rumored to be developing its inaugural hardware product, a move that could directly challenge the iPhone. Industry analyst Ming-Chi Kuo suggested in April that this device might be an AI-centric smartphone, potentially relying on AI agents instead of traditional apps. Such a product would undoubtedly pose one of the most substantial threats to Apple’s core hardware business to date.
Further fueling OpenAI’s hardware ambitions, the company acquired io, the device startup founded by Apple’s former lead designer Jony Ive, in a massive $6.5 billion deal last year. While io is mentioned in the filing, Jony Ive himself is not directly implicated in the lawsuit.
A Broader Pattern of Alleged Misconduct
Tang Tan is not the sole OpenAI employee implicated in Apple’s detailed complaint. The lawsuit also references Chang Liu, a former Apple senior systems electrical engineer who spent eight years with the company before joining OpenAI in 2026. Apple alleges that Liu failed to return an Apple-issued laptop and subsequently used it to download sensitive Apple technical documents.
These stolen documents reportedly contained critical information about unannounced Apple technologies, features, and products, encompassing technical specifications, engineering presentations, and proprietary project data. Additionally, Liu is accused of sharing Apple’s confidential information with other Apple employees who were applying for positions at OpenAI, even advising at least one on interview preparation.
Apple contends that the behavior of these former employees is symptomatic of a larger strategy by OpenAI to illicitly obtain its confidential information. This alleged pattern included encouraging Apple employees to bring designs and prototypes to their interviews and pressing them for details on component and vendor selection processes.
The ongoing investigation by Apple has reportedly uncovered instances where OpenAI and its partners have leveraged Apple’s confidential information while developing their own hardware. For instance, the filing points to the use of a proprietary metal finishing technique by OpenAI, alleging that the company misled a partner into believing it had Apple’s authorization to do so.
Apple’s Stance and Pursuit of Justice
Apple states that it previously sent a letter to OpenAI in February to express its concerns but received no response. Like many tech giants, Apple typically investigates potential trade secret theft by analyzing communications on company-owned devices and reviewing server logs. By initiating this lawsuit, Apple aims to use the legal discovery process to uncover the full extent of the alleged operation.
The company is petitioning the court to bar OpenAI from using or disclosing its trade secrets, mandate the return of all confidential Apple materials, and ensure the preservation of all evidence pertinent to the case. A statement from Apple underscored its commitment: “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.”
The lawsuit’s filing doesn’t mince words, stating, “This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership.” It further claims, “As a natural result, OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.” Apple has affirmed that it will always defend its teams’ hard work and innovations, taking all appropriate steps to do so.
Source: TechCrunch – AI
