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Apple Sues OpenAI Over Alleged Trade Secret Theft

Published July 10, 2026 at 10:36 PM UTC

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Apple has filed a lawsuit against OpenAI, accusing the AI company of stealing trade secrets to support its efforts in developing consumer hardware. The lawsuit, filed in a California federal court, alleges that former Apple employees Tang Tan and Chang Liu, now working at OpenAI, improperly accessed and transferred confidential Apple information. Tan, OpenAI’s chief hardware officer, is accused of soliciting Apple parts via candidates still employed at Apple, while Liu is alleged to have retained sensitive files after leaving the company. Apple claims the misconduct is institutionally sanctioned and that OpenAI is basing its hardware designs on proprietary Apple knowledge. The dispute marks a breakdown in the companies’ partnership, which began in 2024 when Apple incorporated ChatGPT into the iPhone. OpenAI later partnered with former Apple designer Jony Ive, acquired io Products (co-founded by Ive and Tan), and pursued new AI hardware projects. Apple’s suit also names io Products as a defendant. The lawsuit intensifies the growing competitive tensions between Apple and OpenAI, as the latter continues to explore a hardware release and potential public offering. OpenAI has not yet publicly responded to the allegations.