Apple Sues OpenAI Over Alleged AI Hardware Trade Secret Theft

Tech giant Apple has initiated a federal lawsuit against OpenAI, its chief hardware officer Tang Tan, and former Apple engineer Chang Liu, alleging the systematic misappropriation of trade secrets concerning Apple's proprietary hardware. Filed on July 10, 2026, in the U.S. District Court for the Northern District of California, the lawsuit contends that OpenAI’s push into the hardware market, particularly following its acquisition of io Products in 2025, has been built upon unlawfully obtained confidential information. The complaint details accusations that Tang Tan, a former Apple Vice President of product design, and Chang Liu, a senior systems electrical engineer, along with other former Apple employees, illicitly transferred sensitive data. This allegedly included unreleased iPhone blueprints, manufacturing processes, and supply chain data. Apple claims that these individuals not only brought confidential files to OpenAI but also encouraged prospective employees to share proprietary Apple hardware components during interviews, effectively turning recruitment into a scheme to extract trade secrets. The lawsuit highlights the escalating 'talent war' and intellectual property disputes in the fiercely competitive AI and hardware sectors, as companies race to integrate AI into consumer devices beyond software. This legal battle could significantly impact how tech companies manage employee transitions and protect their innovations in the rapidly evolving AI hardware landscape.