Apple just filed a bombshell lawsuit against OpenAI, accusing it of running a coordinated campaign to steal confidential hardware secrets. The suit, filed July 10 in Northern California federal court, names OpenAI’s Chief Hardware Officer Tang Tan and former Apple engineer Chang Liu as defendants — alongside io Products, the Jony Ive-founded hardware firm OpenAI acquired for $6.5 billion last year. Here’s what Apple claims, why it matters, and what’s next.
What Does Apple Actually Accuse OpenAI Of?
The core claim is straightforward: Apple says OpenAI used former employees to systematically steal trade secrets — directed from the top.
Tang Tan spent 24 years at Apple, most recently as VP of product design for the iPhone and Apple Watch. After leaving in early 2024 to co-found io Products with Jony Ive, he allegedly used Apple’s internal project code names during OpenAI recruiting and told candidates still at Apple to bring physical components — batteries, logic boards, SIPs — to interviews for “show and tell” sessions.
At least one candidate was reportedly surprised, saying he “didn’t even know we could take those from the office.”
Chang Liu, a senior systems electrical engineer who spent eight years at Apple, is the other named defendant. Apple claims Liu left for OpenAI in January 2026 without returning his company laptop, skipped his exit interview, and later discovered a bug that let him access Apple’s cloud storage remotely — then celebrated the exploit in a message to a former colleague.
>be Chang Liu
>senior system electrical engineer at Apple
>8 years working on iphone
>january 2026: leave Apple to join OpenAI
>apple asks for laptop back
>ignore them
>lmao it’s my laptop now
>within HOURS of leaving
>message Yu-Ting “Alyssa” Peng, friend at Apple:Liu: “I… pic.twitter.com/yTOUYBI4QU
— NIK (@ns123abc) July 10, 2026
Apple says Liu downloaded dozens of confidential files — including specs on unreleased products — while building hardware for OpenAI.
The 400-Employee Problem
Here’s the number that stands out: over 400 former Apple employees now work at OpenAI. Apple acknowledged many carry knowledge of confidential projects — but drew a clear line: knowing secrets doesn’t entitle OpenAI to use them.
We think this is the most important signal. It suggests Apple’s investigation has only scratched the surface. By going to court, Apple gains legal discovery rights — meaning it can dig much deeper into how OpenAI used the information.
That changes the dynamic. OpenAI’s already preparing for its IPO, which could value it at above $1 trillion. A trade secret lawsuit from the world’s most valuable company isn’t the headline you want in your S-1.
The Bigger Picture: From Partners to Rivals
This lawsuit didn’t happen in a vacuum. Apple and OpenAI struck a high-profile partnership in 2024 to integrate ChatGPT into Siri. But that relationship has been cooling for months.
OpenAI grew frustrated that the deal didn’t deliver the subscriber growth it expected. Apple, meanwhile, rebuilt Siri’s AI backbone with Google Gemini at WWDC 2026 and started welcoming rival chatbots — including Anthropic’s Claude — into iOS 27. As recently as May, Bloomberg reported that OpenAI was exploring its own legal action against Apple over how the Siri partnership played out.
But Apple struck first. And the filing makes it clear: this lawsuit isn’t about the partnership. It’s about hardware.
OpenAI has been quietly building its own consumer device. Reporting from The Information and The Wall Street Journal describes a smart speaker-like product that’s aware of a user’s surroundings, and Apple analyst Ming-Chi Kuo has said OpenAI is developing a custom AI chip and even working on a smartphone for a potential 2028 launch. That hardware push is what Apple sees as the threat — and what it says was built partly on stolen information.
One Detail That Could Change Everything
Apple’s filing includes an allegation that goes beyond employee poaching. It says OpenAI’s partners used a proprietary metal-finishing technique that belongs to Apple — and that one supplier was led to believe OpenAI had Apple’s permission to use it.
If true, that’s not just a case of an engineer carrying knowledge from one job to the next. It’s an allegation that Apple’s actual manufacturing processes were shared outside the company with OpenAI’s full knowledge. That’s a significantly more serious claim than talent migration, and it’ll be the thread to watch as discovery unfolds.
What OpenAI Says
OpenAI responded on X with a brief statement: it has “no interest in other companies’ trade secrets” and remains focused on building its own technology. The company hasn’t commented further. Jony Ive, who co-founded io Products with Tan and now leads OpenAI’s device work, is notably not named as a defendant in the suit.
Our statement in response to this suit: We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere. https://t.co/lIxGW6hyz5
— Drew Pusateri (@drewpusateri) July 10, 2026
Apple didn’t say whether the lawsuit would affect the ChatGPT integration that’s still live in iOS. Tim Cook, who’s set to hand Apple’s CEO role to John Ternus in September, hasn’t personally commented either.
What Happens Next
Apple wants the court to block OpenAI from using its trade secrets, force the return of confidential materials, and preserve all evidence. An injunction could slow OpenAI’s hardware plans right as it needs IPO momentum.
The case adds to OpenAI’s legal pile. It won its trial against Elon Musk in May, but this is a different fight: a $4.6 trillion corporation with a decades-long record of aggressively defending its IP.
We’ll be watching closely. But here’s our read: the AI hardware race is no longer just about who builds the best product. It’s about who built it — and whose ideas they used to do it.
FAQs
What is io Products and how is it connected to Apple?
io Products is a hardware design firm co-founded by Apple’s former design chief Jony Ive and Tang Tan, a former Apple VP. OpenAI acquired io for $6.5 billion in 2025. The firm is now central to OpenAI’s consumer hardware development and is named as a defendant in Apple’s July 2026 lawsuit.
Will OpenAI’s IPO be affected by the Apple lawsuit?
Potentially, yes. OpenAI confidentially filed its S-1 in June 2026, targeting a valuation above $1 trillion. A major trade secret suit from the world’s most valuable company could spook investors and complicate the regulatory review process ahead of the listing.
What hardware is OpenAI building that triggered this lawsuit?
OpenAI hasn’t officially described its device, but reports point to a smart speaker and potentially a smartphone by 2028. The company has also unveiled its first custom AI chip, Jalapeño, built with Broadcom. Apple claims these hardware efforts relied on stolen confidential information.
Is the ChatGPT-Siri partnership still active after this lawsuit?
As of now, yes. Apple hasn’t said the lawsuit will affect the existing ChatGPT integration in iOS. However, Apple already shifted Siri’s core AI engine to Google Gemini at WWDC 2026 and opened iOS 27 to third-party AI agents, reducing its dependence on OpenAI.
How does this compare to other major AI lawsuits in 2026?
The Apple OpenAI lawsuit is one of several major legal battles shaping the AI industry. OpenAI recently won its trial against Elon Musk and still faces the New York Times copyright suit. But this case is unique because it involves hardware trade secrets rather than training data, and pits two former partners directly against each other.
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