Apple Sues OpenAI Over Trade Secret Theft in Federal Hardware Complaint
Apple has sued OpenAI in the Northern District of California, alleging that former Chief Hardware Officer Tang Tan and hundreds of ex-Apple employees moved confidential product data to fuel OpenAI's new hardware push.
Key Takeaways
Apple sued OpenAI on July 10, 2026 in the U.S. District Court for the Northern District of California, alleging coordinated trade secret theft to seed OpenAI's hardware business.
The complaint targets OpenAI Chief Hardware Officer Tang Tan, a 24-year Apple veteran and former VP of product design for iPhone and Apple Watch, and engineer Chang Liu, who allegedly kept an Apple laptop and downloaded confidential documents on unreleased products.
Apple alleges OpenAI recruited its employees using confidential project code names, asked candidates to bring components and drawings to interviews, and coached departing staff on evading Apple security.
The suit follows OpenAI's $6.5 billion acquisition of Jony Ive's startup io in 2025 and reports of a smartphone-like AI device that could rival the iPhone; Apple says a February warning letter went unanswered.
Apple seeks a court order barring OpenAI from using its trade secrets, return of confidential materials, and evidence preservation; OpenAI says it has no interest in other companies' trade secrets.
Kaan Tınmaz
Apple filed suit against OpenAI on July 10, 2026 in the U.S. District Court for the Northern District of California, accusing the AI company and its Chief Hardware Officer Tang Tan of coordinating trade secret theft to seed OpenAI's own hardware ambitions.
What the complaint alleges
Apple says the misconduct "begins at every level" of OpenAI, from members of technical staff up to its Chief Hardware Officer, and includes recruiting Apple employees using confidential project code names, asking candidates to bring components and drawings to interviews, and coaching departing staff on how to evade Apple's security procedures. Tan, previously VP of product design for iPhone and Apple Watch, joined OpenAI last year after 24 years at Apple.
The filing also names Chang Liu, a former senior systems electrical engineer at Apple who allegedly failed to return an Apple laptop and used it to download confidential technical documents about unreleased products before joining OpenAI in 2026.
Why now, and what OpenAI is building
The suit lands as OpenAI accelerates work on its first consumer hardware, an effort seeded by the $6.5 billion acquisition of Jony Ive's device startup io in 2025. Ming-Chi Kuo has reported the device could resemble a smartphone that replaces apps with AI agents, positioning it directly against the iPhone. Apple sent OpenAI a warning letter in February and says it received no response.
The relief Apple is seeking
Apple is asking the court to bar OpenAI from using or disclosing its trade secrets, to return any confidential materials, and to preserve evidence for discovery. "This is the tip of the iceberg," the filing says. "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 said it has "no interest in other companies' trade secrets."
Apple alleges OpenAI and its Chief Hardware Officer Tang Tan coordinated trade secret theft, including recruiting Apple staff with confidential project code names, asking candidates to bring components and drawings to interviews, and coaching departing employees on evading Apple's security procedures, to build OpenAI's hardware business.
Who are the key individuals named in the complaint?
Tang Tan, OpenAI's Chief Hardware Officer who spent 24 years at Apple as VP of product design for iPhone and Apple Watch, and Chang Liu, a former Apple senior systems electrical engineer who allegedly kept an Apple laptop and used it to download confidential documents about unreleased products before joining OpenAI in 2026.
What is OpenAI building in hardware?
OpenAI is developing its first consumer device, seeded by its $6.5 billion acquisition of Jony Ive's startup io in 2025. Analyst Ming-Chi Kuo has reported it could resemble a smartphone that replaces apps with AI agents, positioning it against the iPhone.
What relief is Apple seeking from the court?
Apple wants OpenAI barred from using or disclosing its trade secrets, the return of any confidential materials, and preservation of evidence for discovery. The filing calls the allegations 'the tip of the iceberg,' while OpenAI says it has 'no interest in other companies' trade secrets.'
