Apple Sues OpenAI Over Trade Secret Theft — A Landmark Legal Battle for the AI Era
Apple has filed a lawsuit against OpenAI, alleging trade secret theft orchestrated by senior leadership incl
On July 10, 2026, Apple filed a landmark lawsuit against OpenAI in the U.S. District Court for the Northern District of California, alleging trade secret theft, breach of contract, and systematic intellectual property misappropriation. This is not a routine legal dispute — it is a declaration of war between two technology giants that could reshape the entire AI industry.
Who Are the Accused?
At the center of the complaint are two former Apple employees now working at OpenAI. The primary figure is Tang Tan, OpenAI's Chief Hardware Officer who spent 24 years at Apple, most recently as VP of product design for the iPhone and Apple Watch.
Apple alleges that OpenAI's senior leadership orchestrated a systematic campaign of trade secret theft. The accusations include:
- Using Apple's confidential project code names during OpenAI's recruiting process
- Asking job candidates to bring Apple hardware components to their interviews
- Coaching departing Apple employees on how to evade the company's security procedures
- Requesting details about Apple's unannounced products
The Second Defendant: Chang Liu
The lawsuit also names Chang Liu, a senior systems electrical engineer who spent eight years at Apple before leaving for OpenAI in 2026. He is accused of:
- Failing to return an Apple-issued laptop after leaving the company
- Using that computer to download confidential Apple technical documents
- Sharing Apple's confidential information with other Apple employees applying to work at OpenAI
- Advising at least one of them on what to study before their interview
OpenAI's Hardware Ambitions
This lawsuit comes at a time when OpenAI is reportedly developing its first hardware product, which would likely compete directly with the iPhone. Industry analyst Ming-Chi Kuo has suggested this device could be a smartphone that relies on AI agents instead of traditional apps — potentially one of the largest threats to Apple's core hardware business.
Apple's former lead designer Jony Ive's device startup io was acquired by OpenAI last year for $6.5 billion to aid the AI company with its hardware ambitions. While Ive was not named in the suit, io was referenced in the filing.
Apple's Legal Demands
Apple is asking the court to:
- Bar OpenAI from using or disclosing Apple's trade secrets
- Require OpenAI to return any confidential Apple materials
- Preserve evidence related to the case
What This Means for the AI Industry
This lawsuit raises profound questions about the future of the technology industry. AI companies are in an intense talent war, and the boundaries of intellectual property are being tested. Apple alleges that the stolen documents included information about unannounced technologies, features, technical specifications, engineering presentations, and proprietary project data.
The complaint also references a proprietary metal finishing technique that OpenAI allegedly used after misleading a partner into believing it had Apple's permission to do so. For businesses worldwide — including Georgian IT companies — this case serves as a stark reminder about the importance of intellectual property protection in the AI era.