Apple Sues OpenAI, Alleges Theft of Trade Secrets for AI Gadgets

Apple has filed a lawsuit against OpenAI, alleging that the artificial intelligence company stole trade secrets to advance its nascent hardware business. The suit, lodged in a California federal court on July 10, 2026, names OpenAI, its Chief Hardware Officer Tang Tan, and technical staffer Chang Liu as defendants, both of whom are former Apple employees.

Apple's complaint outlines a "coordinated pattern of misconduct," accusing OpenAI leaders of soliciting confidential information, including prototypes and product designs, from Apple employees during recruitment interviews. It further alleges that Tang Tan, a former Apple VP, directed a broad scheme to misappropriate trade secrets, and that Chang Liu improperly accessed and downloaded sensitive hardware files after joining OpenAI. OpenAI, through a spokesperson, has stated it does not seek other companies' trade secrets and focuses on its own innovation.

This legal battle marks a significant deterioration in relations between the companies, which previously partnered on AI integration before Apple announced plans to use Google's Gemini for upcoming launches. Apple contends that OpenAI's push into consumer devices, including a reported screenless gadget, relies heavily on stolen proprietary information, asserting its hardware business is "rotten to its core."