Apple sues OpenAI over alleged trade secret theft

A major legal battle is brewing in the artificial intelligence world. Tech giant Apple has officially sued OpenAI, the company behind ChatGPT, alleging a widespread pattern of trade secret theft. The lawsuit, filed on Friday, July 10, 2026, in a federal court in the Northern District of California, claims that OpenAI's efforts to build a competing hardware business are rooted in illegally obtained confidential information from Apple. This move highlights the intense competition and intellectual property concerns that define the current AI landscape.

The Core of the Allegations: Coordinated Trade Secret Theft

Apple's complaint paints a picture of deliberate and coordinated misconduct, accusing OpenAI of engaging in "a coordinated pattern of misconduct at an institutional level." The lawsuit specifically names two former Apple employees who now hold senior positions at OpenAI: Tang Tan, who is OpenAI's Chief Hardware Officer, and Chang Liu, a technical staffer.

Tang Tan, a former Vice President of Product Design at Apple with over two decades at the company, is accused of directing a broad effort to steal Apple's trade secrets. Apple alleges that Tan brought confidential information about Apple suppliers with him to OpenAI. More significantly, the lawsuit claims Tan encouraged job candidates who were still employed by Apple to share highly confidential material, including product designs and other sensitive information, during their interviews with OpenAI. Apple's complaint even states that Tan asked these candidates to bring "actual parts" from Apple for "show and tell" sessions, using his insider knowledge to extract more confidential data.

Chang Liu, a former senior system electrical engineer at Apple, who departed for OpenAI in January 2026, faces equally serious accusations. Apple claims Liu failed to return a company laptop upon his departure. An investigation by Apple allegedly revealed that Liu exploited a "previously unknown" authentication bug to access Apple's internal network even after he had started working at OpenAI. Through this exploit, Liu is accused of downloading "dozens of Apple's confidential hardware-related files," which included detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data. Adding to the gravity of the allegations, Apple claims Liu joked about this security breach in messages, using phrases like "LOL" and "so funny." Furthermore, Liu is accused of coaching another Apple employee he was recruiting to OpenAI on which confidential materials to review before her own interview.

Beyond individual actions, Apple's lawsuit also implicates OpenAI directly, alleging that the company approached a long-time Apple supplier, which works on power and battery manufacturing, using insider terminology to ask "targeted questions" about specific Apple components. The complaint states that OpenAI also misled an Apple partner into carrying out Apple's proprietary metal-finishing technique, making them believe they had Apple's permission.

OpenAI's Hardware Ambitions and Apple's Protective Stance

This lawsuit comes amidst OpenAI's clear and aggressive push into the hardware sector. Last year, OpenAI acquired io Products, a startup founded by former Apple design guru Jony Ive, in a deal reportedly worth $6.4 billion. This acquisition, coupled with the recruitment of numerous former Apple executives and engineers, signaled OpenAI's intent to develop its own consumer hardware devices. Apple's complaint directly challenges the foundation of this new venture, stating, "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."

For its part, Apple emphasized its commitment to protecting its intellectual property. An Apple spokesperson stated, "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, through its spokesperson Drew Pusateri, issued a brief response, stating that the company is reviewing the court filing. Pusateri added, "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."

A Shifting Partnership and the Broader AI Landscape

The lawsuit marks a dramatic turning point in what was once a notable, albeit brief, partnership between the two tech giants. In 2024, Apple and OpenAI announced a major collaboration that would see Apple integrating OpenAI's ChatGPT into its operating systems for iPhones, iPads, and Macs. However, this relationship appears to have soured. When Apple unveiled its revamped voice assistant Siri last month, its core AI component was based on Google's Gemini AI model, not ChatGPT.

Apple has been actively developing its own comprehensive AI strategy, branded as "Apple Intelligence." Announced on June 10, 2024, at the Worldwide Developers Conference, Apple Intelligence is a suite of AI features designed to be deeply integrated into iOS 18, iPadOS 18, and macOS Sequoia. Apple's approach emphasizes on-device processing, privacy, and seamless integration into its ecosystem, rather than focusing solely on a standalone chatbot. The full rollout of Apple Intelligence is expected by 2026, with the first features becoming available in beta with iOS 18.1, iPadOS 18.1, and macOS Sequoia 15.1 in late October 2024.

This legal action also comes at a time when OpenAI is navigating a highly competitive and often controversial environment. The company has faced numerous challenges, including the temporary ousting and subsequent reinstatement of CEO Sam Altman in late 2023, which stemmed from concerns about AI safety and allegations of abusive behavior. OpenAI is also embroiled in other legal disputes, including copyright lawsuits from authors and media organizations like The New York Times, which allege that its AI models were trained using copyrighted material without permission. These ongoing controversies and the increasing scrutiny of AI ethics and intellectual property rights add another layer of complexity to OpenAI's operations, especially as the company reportedly prepares for a potential initial public offering (IPO).

Implications for the AI Industry

The Apple-OpenAI lawsuit could have far-reaching implications for the entire AI industry. It underscores the critical importance of intellectual property in a rapidly evolving field where innovation often builds upon existing technologies and talent. The movement of employees between leading tech companies is common, but allegations of trade secret theft raise serious questions about the boundaries of competitive practices and the protection of proprietary information.

For Apple, this lawsuit signals a strong stance on safeguarding its innovations, especially as it ramps up its own AI capabilities with Apple Intelligence. The company is known for its stringent control over its ecosystem and proprietary technologies, and this legal action reinforces that commitment. For OpenAI, facing such a high-profile lawsuit from a major tech player like Apple could impact its reputation, talent acquisition efforts, and potentially its valuation, particularly if it moves forward with an IPO. It also highlights the intense pressure on AI companies to develop distinctive hardware, as devices become a key battleground for AI integration.

The outcome of this lawsuit will be closely watched by companies across the tech sector, as it could set precedents for how intellectual property is protected in the age of generative AI and how companies manage the flow of talent and information in a highly competitive market.

Frequently Asked Questions

What are the main allegations Apple is making against OpenAI?

Apple alleges that OpenAI, along with former Apple employees Tang Tan and Chang Liu, engaged in a coordinated effort to steal Apple's trade secrets. These secrets include confidential hardware-related files, information about unreleased products, engineering presentations, and proprietary project data, all intended to benefit OpenAI's nascent hardware business.

Who are Tang Tan and Chang Liu, and what are their alleged roles?

Tang Tan is OpenAI's Chief Hardware Officer and was previously a Vice President of Product Design at Apple for over 20 years. Apple accuses him of directing efforts to steal trade secrets, including soliciting confidential information from Apple employees during job interviews at OpenAI and sharing details about Apple suppliers. Chang Liu is a technical staffer at OpenAI and a former Apple electrical engineer. Apple alleges Liu used a security bug to illegally access and download numerous confidential Apple files after leaving the company and joining OpenAI.

How does this lawsuit relate to Apple's own AI strategy?

This lawsuit comes as Apple is heavily investing in its own AI capabilities through "Apple Intelligence," a system designed for deep integration into its operating systems and devices, with a strong focus on privacy and on-device processing. The legal action can be seen as Apple's aggressive move to protect its intellectual property as it competes directly in the AI space and expands its own AI offerings.

What has been OpenAI's response to the lawsuit?

OpenAI spokesperson Drew Pusateri stated that the company is reviewing the court filing and maintains that OpenAI has "no interest in other companies' trade secrets." He added that OpenAI remains focused on building innovative technology.