- Apple has filed a federal lawsuit accusing OpenAI of a “coordinated campaign” to steal trade secrets about unreleased products through poached employees.
- The complaint says more than 400 former Apple employees now work at OpenAI, and alleges OpenAI encouraged them to take confidential files during their notice periods.
- It centers on Tang Tan, OpenAI’s chief hardware officer and a former Apple VP of product design, and names former iPhone engineer Chang Liu.
- OpenAI denied the allegations; Apple seeks a jury trial and destruction of all allegedly stolen materials.
What Happened
Apple has sued OpenAI in a California federal court, alleging a “coordinated campaign” to steal trade secrets about unreleased products, according to a July 11, 2026 report from The Decoder, citing Bloomberg. The complaint says OpenAI pushed Apple employees to share information, components, drawings, and materials tied to unreleased products. OpenAI denied the allegations, saying it has no interest in others’ trade secrets.
Why It Matters
The suit pits the world’s most valuable consumer-hardware company against the most prominent AI lab, and ties directly to OpenAI’s move into devices. “At every level, from members of its technical staff to its chief hardware officer… OpenAI has been stealing Apple’s trade secrets and confidential information,” the complaint states, adding that “OpenAI’s nascent hardware business now rests on the shakiest of foundations.” The two companies were partners as recently as June 2024, when ChatGPT was integrated into Apple Intelligence at WWDC.
Technical Details
The lawsuit centers on Tang Tan, OpenAI’s chief hardware officer, who previously led iPhone, Apple Watch, and AirPods development as an Apple VP; Apple claims he encouraged employees to share details about upcoming products during job interviews. It also names former iPhone hardware engineer Chang Liu, who joined OpenAI in January and allegedly downloaded dozens of confidential files over several weeks. More than 400 former Apple employees now work at OpenAI, per the complaint, which says OpenAI “counseled” departing staff not to reveal their new employer and to avoid quitting immediately so they could keep accessing confidential data during a two-week notice period. Apple wants OpenAI to stop the practices, destroy all proprietary materials, redesign products to contain no Apple technology, and is seeking a jury trial.
Who’s Affected
The case affects both companies’ hardware roadmaps and the many ex-Apple engineers now at OpenAI. It grows out of OpenAI’s 2024 acquisition of io Products — the AI-device startup Tan co-founded with former Apple design chief Jony Ive and Evans Hankey — for $6.5 billion; neither Ive nor Hankey is named. Apple has since shifted to working more closely with Google on Siri after the ChatGPT partnership underdelivered.
What’s Next
OpenAI’s first hardware device won’t ship before late February 2027 at the earliest, after the company scrapped the planned “io” brand and hit software, privacy, and infrastructure hurdles. Internally it is exploring a pen-like device (codenamed “Gumdrop”), smart headsets, and a screenless speaker, though analyst Ming-Chi Kuo says the first mass-market product may be a voice-controlled phone built with MediaTek, Qualcomm, and Luxshare for the first half of 2027. The litigation now shadows all of it.
