Apple sues OpenAI for allegedly stealing trade secrets through former employees

rotten to its core by illegal reliance on misappropriated trade secrets
Apple's characterization of OpenAI's hardware business in the lawsuit filed July 10.

When two former partners become rivals, the secrets they once shared become contested ground. Apple's lawsuit against OpenAI, filed in San Francisco on July 10, 2026, alleges that the AI company systematically harvested confidential knowledge about unreleased products by recruiting former Apple insiders — some with decades of institutional memory — and encouraging them to carry proprietary information across the threshold. At its heart, this is a story as old as ambition itself: the moment a protégé decides to build a competing kingdom, and the master reaches for the law.

  • Apple accuses OpenAI of running a coordinated operation in which job candidates were asked to bring device prototypes to interviews and internal documents were downloaded from company laptops before employees departed.
  • The two men at the center of the lawsuit — Tang Tan, OpenAI's chief hardware officer, and engineer Chang Liu — each spent decades at Apple, making the alleged betrayal feel less like corporate espionage and more like a defection.
  • The fracture runs deeper than this lawsuit: a 2024 AI partnership between the companies collapsed, Apple pivoted to Google, and OpenAI accelerated its own hardware ambitions by acquiring Jony Ive's design studio for $6.5 billion.
  • Apple sent a warning letter in February that went unanswered, and now seeks an injunction to halt OpenAI's use of its intellectual property — framing the rival's entire hardware venture as 'rotten to its core.'
  • OpenAI has dismissed the claims in a single sentence, while more than 400 former Apple employees now populate its ranks — a talent migration that signals just how fiercely the two companies are competing for the same future.

Apple filed a federal lawsuit in San Francisco on July 10, accusing OpenAI of orchestrating a deliberate campaign to steal trade secrets about unreleased products. The complaint describes job candidates being asked to bring device prototypes to interviews, employees downloading internal documents before leaving, and manufacturing partners being approached to reveal Apple's proprietary metal-finishing techniques.

The lawsuit names two former Apple veterans now at OpenAI. Tang Tan spent 24 years leading design for the iPhone and Apple Watch before becoming OpenAI's chief hardware officer; Apple alleges he coached departing employees on how to bypass the company's security procedures. Chang Liu is accused of using a former colleague's Apple-owned laptop to download technical documents about unannounced products, and of deliberately withholding an Apple laptop he took when he left.

The legal confrontation is inseparable from a broader falling-out. Apple and OpenAI had struck a partnership in 2024 to integrate ChatGPT into Apple products, including Siri. That arrangement unraveled, and Apple announced in January it would turn to Google instead. Meanwhile, OpenAI acquired IO — the design studio founded by Apple's legendary design chief Jony Ive — for $6.5 billion in 2025, absorbing roughly 55 engineers and researchers and positioning itself as a direct competitor in consumer hardware. More than 400 former Apple employees now work at OpenAI.

Apple says it sent OpenAI a warning letter in February expressing concern that confidential information was reaching the company improperly. OpenAI did not respond. The company is now seeking an injunction to prevent OpenAI from using or retaining its intellectual property, declaring that OpenAI's hardware ambitions rest on a foundation 'rotten to its core.' OpenAI, for its part, said it has no interest in other companies' trade secrets — a denial as brief as the stakes are large.

Apple filed a lawsuit against OpenAI on July 10, accusing the artificial intelligence company of systematically stealing trade secrets about unreleased products through a coordinated campaign involving former Apple employees now working at the startup. The complaint, filed in federal court in San Francisco, paints a picture of deliberate misappropriation: job candidates were allegedly asked to bring device prototypes and components to interviews, internal documents were downloaded from Apple laptops, and manufacturing partners were approached with requests to demonstrate Apple's proprietary metal-finishing techniques.

The two companies had struck a partnership deal in 2024, with Apple agreeing to integrate OpenAI's technology into its products, including the Siri digital assistant. That arrangement has since fractured. Apple grew dissatisfied with how OpenAI's ChatGPT was being implemented, and in January announced it would partner with Google instead. Meanwhile, OpenAI has been building its own hardware business—a direct competitive threat to Apple's core market.

The lawsuit centers on two former Apple employees now at OpenAI. Tang Tan, who spent 24 years at Apple leading design for the iPhone and Apple Watch, is now OpenAI's chief hardware officer. Apple accuses him of coaching newly hired Apple employees on how to circumvent Apple's security procedures for departing staff. The second defendant is Chang Liu, whom Apple says used a former colleague's Apple-owned laptop to download technical documents about unannounced products while working at OpenAI, and deliberately withheld returning an Apple laptop he had taken when he left the company.

The scale of the talent exodus is striking. More than 400 former Apple employees now work at OpenAI, according to the lawsuit. Many came through the acquisition of IO, a design studio founded by Jony Ive, Apple's legendary design chief who spent 27 years at the company shaping its minimalist aesthetic. OpenAI paid $6.5 billion for IO in 2025, bringing Ive and roughly 55 engineers and researchers into the company. Ive himself is not named in the lawsuit.

Apple sent a warning letter to OpenAI in February, expressing concern that confidential information was "making its way to OpenAI's business improperly." The company says OpenAI did not respond. In the lawsuit, Apple wrote that "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."

OpenAI's response was brief and categorical. Spokesman Drew Pusateri said the company has "no interest in other companies' trade secrets" and remains "focused on building innovative technology that empowers people everywhere." Neither Tan nor Liu immediately responded to requests for comment.

Apple is seeking an injunction to prevent OpenAI from possessing, using, or sharing its trade secrets, as well as an order requiring the return of Apple's intellectual property. The company has a history of aggressive defense of its secrets—in 2019, it sued former chief chip architect Gerard Williams III for breaking his employment contract as he worked on a startup called Nuvia, though Apple dropped that case in 2023.

The lawsuit reflects the high stakes of the AI hardware race. Sam Altman, OpenAI's chief executive, has long harbored ambitions to build AI-powered wearable devices—products that could record audio and video or respond to voice commands. His backing of the now-defunct Humane startup, which made a wearable AI device, showed the depth of that vision. Now, with IO's acquisition and a team of former Apple designers and engineers, OpenAI is positioned to compete directly in the hardware space where Apple has long dominated.

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, in the lawsuit
We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere.
— Drew Pusateri, OpenAI spokesman
A Conversa do Hearth Outra perspectiva sobre a história
Inventor

Why does Apple care so much about this now? They've been losing talent to startups for years.

Model

Because OpenAI isn't a startup anymore—it's a rival with $6.5 billion in backing and a clear plan to build hardware. That's not poaching for a different market. That's building a competitor.

Inventor

But the lawsuit specifically mentions manufacturing techniques and metal finishing. Why would that matter to an AI company?

Model

Because OpenAI is trying to make physical devices. They need to know how to build them well. If they can copy Apple's manufacturing secrets, they skip years of development and trial.

Inventor

The letter in February—why didn't OpenAI respond?

Model

That's the question Apple is asking too. Either they ignored it, or they didn't think they'd done anything wrong. Either way, it looks like they kept going.

Inventor

What happens if Apple wins?

Model

OpenAI would have to stop using whatever information they took and hand back Apple's intellectual property. But the real damage might already be done—those 400 former employees know how Apple thinks.

Inventor

Is this about the failed partnership, or the trade secrets?

Model

Both. The partnership failed because OpenAI wanted something different from what Apple was willing to give. Now OpenAI is building that thing themselves, using people and knowledge that came from Apple. That's what made Apple angry enough to sue.

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