Apple has filed suit against OpenAI and two former Apple employees, accusing them of misappropriating closely guarded hardware trade secrets as the two companies increasingly compete in consumer devices. The complaint was lodged on July 10, 2026, in the U.S. District Court for the Northern District of California, naming OpenAI-affiliated entities and two ex-Apple staffers now working on OpenAI's hardware efforts.
July 10, 2026 · U.S. District Court, N.D. California
Apple Sues OpenAI Over Alleged Hardware Trade-Secret Theft
Once partners on Apple Intelligence, the two firms are now direct rivals in consumer devices. Apple accuses OpenAI and two former employees of improperly taking and eliciting closely guarded hardware secrets.
400+
former Apple employees now said to work at OpenAI
$6.5B
OpenAI's 2025 acquisition of io Products, Jony Ive's hardware startup
2
named ex-Apple engineers among the defendants
From Partners to Rivals — The Timeline
2024
Apple & OpenAI partner to bring ChatGPT into Apple Intelligence & Siri
→
2025
OpenAI buys io Products for ~$6.5B, entering consumer hardware
→
Jul 2026
Apple files trade-secret suit as the two become direct rivals
The Named Ex-Apple Defendants
Tang Yew Tan
24 yrs at Apple, ex-VP product design (iPhone, Watch) → OpenAI Chief Hardware Officer
Used internal Apple codenames to probe candidates on secret projects
Asked employed candidates to bring physical parts for "show and tell"
Emailed himself supplier information before leaving
Chang Liu
8+ yrs at Apple, senior systems/electrical engineer → OpenAI (Jan 2026)
Failed to return a company-issued MacBook
Exploited an authentication bug to reach Apple's internal network
Downloaded dozens of sensitive manufacturing files (e.g. circuit boards)
OpenAI's Response
Denies wrongdoing, saying it "has no interest in other companies' trade secrets." California law broadly protects job mobility, so recruiting Apple veterans is not itself unlawful.
The Legal Exposure
Turns on whether documents were improperly taken or confidential information deliberately elicited. Poaching alone would not sustain a trade-secrets claim.
What's At Stake
Apple seeks injunctive relief and damages. The complaint centers on unreleased, confidential projects — so no device specs, pricing or launch timing were disclosed.
A hardware trade-secret fight over physical parts, suppliers and manufacturing is a new front, differing from the software-centric battles that have dominated AI litigation.
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