Apple filed a lawsuit against OpenAI in federal court in Northern California on July 10, 2026, alleging that OpenAI engaged in trade secret theft to advance its consumer hardware ambitions [1]. According to the legal filing, Apple claims that OpenAI, from its technical staff up to its Chief Hardware Officer, systematically stole Apple's trade secrets and confidential information, often in coordination with business partners [1]. The lawsuit marks a dramatic shift in the relationship between the two companies, which previously partnered in 2024 to integrate ChatGPT into the iPhone's operating system, an event highlighted by OpenAI CEO Sam Altman's visit to Apple's headquarters [1].
The complaint specifically names OpenAI's Chief Hardware Officer, Tang Tan, a former Apple vice president, as a defendant. Apple alleges that Tan directed Apple employees interviewing at OpenAI to bring 'actual parts' from Apple for 'show and tell' sessions, during which OpenAI could extract further confidential information [1]. Additionally, Apple accuses OpenAI of coaching departing Apple employees on how to evade security processes and claims that Chang Liu, another former Apple employee now at OpenAI, stole an Apple laptop [1]. IO Products, the startup founded by former Apple designer Jony Ive and acquired by OpenAI for $6.4 billion, is also named in the lawsuit [1].
Apple further alleges that OpenAI has asked hardware firms to use a proprietary metal finishing technique invented by Apple, misleading partners into believing they had Apple's permission [1]. The company asserts that significant evidence has recently emerged indicating that OpenAI employees wrongfully took secret and confidential information about unreleased Apple technologies, processes, and products [1].
OpenAI has not announced specific details or timelines for its hardware products, though CEO Sam Altman stated in November that the company had completed its first prototypes [1]. Apple did not comment on whether the lawsuit would impact its partnership with OpenAI regarding ChatGPT's integration into Apple Intelligence [1]. Apple is seeking damages, injunctions, and a court order to prevent OpenAI from using its trade secrets [1].
CONCLUSION
Apple's lawsuit against OpenAI signals a major escalation in tensions between the two tech giants, with serious allegations of trade secret theft involving high-level personnel and proprietary technologies. The legal action could have significant implications for both companies' hardware strategies and their ongoing partnership. Market participants are likely to view this as a high-impact development with potential for further disruption.