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Apple sues OpenAI for trade secret theft in blockbuster lawsuit

Published July 11, 2026 at 10:33 AM UTC

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Apple has filed a federal lawsuit against OpenAI, accusing the artificial intelligence company of a systematic campaign to misappropriate trade secrets as it expands into hardware development. The complaint, filed in the Northern District of California, alleges that OpenAI has encouraged former Apple employees to disclose confidential information regarding unreleased products, processes, and technologies. Apple claims this misconduct is part of an institutional effort to accelerate OpenAI's entry into the consumer device market.

The lawsuit specifically names two former Apple employees now at OpenAI: Tang Tan, the company's chief hardware officer and a former vice president of product design at Apple, and Chang Liu, a former senior system electrical engineer. Apple alleges that Liu accessed internal networks and downloaded proprietary files after his departure, while Tan is accused of using internal codenames and institutional knowledge to extract sensitive information from job candidates during interviews.

This legal action marks a significant deterioration in the relationship between the two Silicon Valley giants. While OpenAI previously served as a key partner for Apple’s AI-integrated features, the companies are now direct competitors in the hardware space. Apple reports that more than 400 of its former employees are currently employed by OpenAI, a figure that underscores the scale of talent migration between the two firms.

In response to the allegations, an OpenAI spokesperson stated that the company has no interest in the trade secrets of other firms and remains focused on building its own innovative technology. Apple, however, maintains that its internal investigation uncovered a pattern of theft and that it had attempted to address these concerns with OpenAI prior to filing the litigation.

Apple is seeking a jury trial and demanding that OpenAI cease its alleged practices and destroy any misappropriated proprietary materials. The outcome of the case could have significant implications for OpenAI, which is reportedly preparing for an initial public offering in the coming months.