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Apple Sues OpenAI, Alleges Trade Secret Theft Over Hardware Project

Apple Inc. has taken legal action against OpenAI, filing a lawsuit in the U.S. District Court for the Northern District of California on July 10, 2026. The tech giant accuses OpenAI of stealing trade secrets and breaching contracts, marking a significant escalation in the rivalry between the two companies in the artificial intelligence space.

At the heart of the complaint are allegations that OpenAI's senior leadership, including Tang Tan—a former Apple vice president who now serves as OpenAI's chief hardware officer—engaged in systematic espionage. The suit claims that during the hiring process, OpenAI used Apple's confidential project codes, asked job candidates to bring Apple hardware components to interviews, and guided departing employees to bypass security procedures.

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Another key figure is Liu Chang, a former senior systems electrical engineer at Apple. According to the lawsuit, Liu downloaded confidential technical documents—including unpublished specs, engineering demonstrations, and project data—onto an Apple laptop that he never returned after leaving the company in 2026 to join OpenAI. He is then accused of leaking that information to former colleagues.

Apple asserts that ongoing investigations reveal OpenAI and its partners have used its confidential information in developing hardware products, including a proprietary metal surface treatment technology. OpenAI is currently pushing forward with its first hardware device, following a $6.5 billion acquisition of the startup io. Industry analysts speculate the device could be a smartphone that relies entirely on AI agents rather than traditional apps, posing a direct threat to Apple's core business.

In response, Apple has stated it will "resolutely protect its team's innovative achievements" and has asked the court to prohibit OpenAI from using or disclosing its trade secrets. OpenAI fired back on X, saying it has "no interest in other companies' trade secrets" and will continue to focus on innovation and R&D.

The outcome of this case could have far-reaching implications for the AI hardware ecosystem, potentially reshaping the competitive landscape.

Key Points

  • Apple filed a lawsuit against OpenAI on July 10, 2026, alleging trade secret theft and contract breaches.
  • The suit involves former Apple executives, including Tang Tan, now at OpenAI.
  • A former Apple engineer is accused of downloading confidential data and leaking it to colleagues.
  • OpenAI is developing its first hardware product, possibly an AI-only smartphone.
  • Apple seeks to block OpenAI from using its trade secrets; OpenAI denies the allegations.