Apple Sues OpenAI for Trade Secret Theft by Former Employees
Apple Files Landmark Trade Secret Lawsuit Against OpenAI
Apple sued OpenAI and two former employees on Friday in U.S. District Court for the Northern District of California, alleging a coordinated campaign to steal trade secrets about unreleased hardware products. The complaint, filed July 10, 2026, names OpenAI as the company, plus Tang Tan, OpenAI's Chief Hardware Officer and former Apple designer of the iPhone, Apple Watch, and iPod, and Chang Liu, a former senior electrical engineer who joined OpenAI in January 2026 Bloomberg.
Apple alleges the stolen information was used to develop OpenAI's own hardware devices, not transferred to ChatGPT. The complaint states: "At every level, from members of its technical staff to its chief hardware officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information" Axios.
Alleged Misconduct: Downloads, Components, and Encouragement
According to the lawsuit, Liu "surreptitiously accessed and downloaded dozens of Apple's confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications and proprietary project data" while developing hardware for OpenAI. Liu allegedly used a work-issued Apple laptop he retained after departure and accessed a former colleague's computer post-exit CNN.
Tan allegedly directed job candidates still employed at Apple to bring "actual parts" from Apple to their OpenAI interviews and informed OpenAI about critical supplier meetings before leaving the company. The suit contends OpenAI actively encouraged Apple employees to share information, components, and drawings while coaching them on avoiding detection during job transitions Wall Street Journal.
Apple contacted OpenAI in February 2026 demanding it stop soliciting information from current and former employees; OpenAI did not respond, court records show.
Remedies Sought: Injunction, Destruction, Redesign
Apple seeks a jury trial and demands OpenAI cease the practices immediately, destroy any proprietary materials obtained, and redesign upcoming products to exclude Apple technology. The company is also seeking damages for trade secret misappropriation and breach of contract, plus an injunction preventing further use or disclosure of the secrets Reuters.
No sentences, penalties, or dollar amounts have been awarded; the case was only just filed. No regulatory action by the FTC, DOJ, or other government agencies has been announced. This remains a private civil lawsuit in federal court.
