APPLE SUES OPENAI, ALLEGING THEFT OF AI HARDWARE TRADE SECRETS

Apple sued OpenAI on Friday in the U.S. District Court for the Northern District of California, alleging trade secret misappropriation and breach of contract tied to OpenAI's development of not-yet-unveiled AI hardware. CNBC, CNN Business, CBC News, TechCrunch and Axios reported the lawsuit on July 10. Apple's complaint alleges that OpenAI obtained and used confidential Apple hardware information through former Apple employees, recruiting practices and business partners. The allegations are unproven civil claims. No court has found OpenAI, its executives or any former Apple employee liable for trade secret theft in this case.

Apple's filing states that "at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information." That language is Apple's allegation, not an established fact. OpenAI denied wrongdoing. A representative for the company said, "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." The dispute marks a sharp escalation between two companies that were recently public partners in consumer AI.

One of Apple's central allegations concerns Chang Liu, who spent eight years at Apple as a senior systems electrical engineer before leaving for OpenAI in 2026. Apple alleges that Liu failed to return an Apple-issued laptop after his departure and used it to download confidential Apple technical documents. The complaint also alleges that Liu's actions were part of a wider pattern rather than an isolated employee departure. Those claims remain allegations in a civil filing. Liu has not been found liable in court on the facts described in Apple's complaint.

Apple also makes allegations involving Tang Tan, OpenAI's chief hardware officer and a former Apple executive. Apple accuses Tan of using Apple confidential project code names during OpenAI recruiting, asking job candidates to bring Apple hardware components to interviews, coaching departing Apple employees on evading Apple's security procedures, and asking for details about unannounced products. Those claims go to Apple's broader argument that OpenAI's hardware effort was allegedly built through improper access to Apple information. OpenAI denies interest in other companies' trade secrets, and the accusations against Tan remain unproven.

A third part of Apple's complaint focuses on supply-chain conduct. Apple alleges that OpenAI asked hardware firms to carry out a metal finishing technique Apple says it invented, while misleading a partner into believing OpenAI had Apple's permission. Supply-chain allegations can be important in trade secret cases because confidential manufacturing knowledge may sit not only inside a company but also with vendors, contractors and component partners. Apple's complaint argues that OpenAI's alleged conduct reached beyond employee recruitment into the hardware production ecosystem.

The case lands in a broader fight over the next generation of consumer AI devices. Apple and OpenAI partnered in 2024 when ChatGPT was integrated into the iPhone operating system, giving OpenAI prominent placement inside Apple's consumer software ecosystem. Relations cooled after OpenAI moved further into hardware, including its acquisition of former Apple designer Jony Ive's startup IO Products in a deal reported at $6.4 billion. OpenAI's hardware plans have not yet been fully unveiled, but the company's move into physical devices has made it a potential competitor to Apple in a market Apple has long dominated.

The lawsuit also touches a long-running tension around employee mobility and trade secret protection in Silicon Valley. California generally protects workers' ability to change jobs, but companies can sue when they allege that employees took confidential material, disclosed proprietary information or helped a new employer use protected knowledge. Apple's case therefore depends on more than the fact that former Apple employees joined OpenAI. The complaint alleges specific acts: retained devices, downloaded documents, recruiting practices involving confidential code names and components, and supplier conduct around a manufacturing technique. OpenAI is expected to challenge those allegations or argue that its hardware work was independently developed.

The next stage of the case will determine whether Apple can support its allegations with documents, device records, witness testimony, supplier communications or internal OpenAI materials. OpenAI may seek dismissal of some claims, deny factual allegations, challenge whether the information qualifies as trade secrets, or argue that Apple cannot show misuse. The court may also consider requests related to evidence preservation, discovery, confidentiality orders or possible restrictions on the use of disputed information. Until then, the public record is limited to Apple's complaint, OpenAI's denial and news reporting on the allegations.

Fact-check date: 12 July 2026
Article type: News
Sources: CNBC, CNN Business, CBC News, TechCrunch and Axios reporting on Apple's July 10, 2026 lawsuit against OpenAI; Apple's civil complaint filed in the U.S. District Court for the Northern District of California as quoted by those outlets; statement from an OpenAI representative denying wrongdoing.