Apple Sues OpenAI Over Trade Secret Theft and Hardware IP Misuse

Legal Allegations and the Hardware Conflict

The tension between Apple and OpenAI centers on allegations that the AI lab systematically recruited Apple employees to secure intellectual property for its own hardware ambitions. In a 41-page complaint filed in the U.S. District Court for the Northern District of California, Apple alleges that OpenAI engaged in a coordinated effort to harvest confidential information, specifically naming Chief Hardware Officer Tang Tan as a central figure in these efforts.

Apple’s filing suggests that OpenAI’s move into the hardware space—highlighted by its $6.4 billion acquisition of Jony Ive’s startup, IO Products—is directly fueled by misappropriated Apple trade secrets. The lawsuit claims that OpenAI coached departing employees to bypass security protocols and directed candidates to bring actual parts from Apple to interviews for show and tell sessions. Furthermore, the complaint alleges that former Apple employee Chang Liu stole an Apple laptop.

The Breakdown in Communication

Despite Apple’s assertion in its lawsuit that OpenAI never responded to concerns raised earlier this year, evidence suggests a more chaotic administrative reality. According to reporting by NBC News, OpenAI did initiate a response to Apple’s outreach in February 2026. However, the dialogue fractured when an outside attorney representing Apple mixed up the names and email addresses of two OpenAI staff members, Wang and Chang.

This administrative error appears to have brought the exchange to a halt, contradicting the narrative of total silence presented in Apple’s court filings. The incident highlights the friction between the two companies, which had maintained a high-profile partnership as recently as 2024 when ChatGPT was integrated into the iPhone operating system.

OpenAI’s Defense and Corporate Stakes

OpenAI has formally denied the allegations, characterizing the lawsuit as meritless. While we take these allegations seriously, we’re not aware of any evidence that this complaint has merit, the statement read. This follows an earlier, more general denial from the lab, which stated, We have no interest in other companies’ trade secrets.

The stakes for OpenAI are significant as the company prepares for a planned initial public offering. The firm is currently navigating multiple fronts, having only recently concluded a high-profile legal victory against Tesla and SpaceX CEO Elon Musk, who had challenged the company’s nonprofit structure.

Specific Claims Against Former Employees

The lawsuit details specific instances of alleged misconduct involving former employees who transitioned to OpenAI. Beyond the allegations regarding Tang Tan, the filing focuses on the actions of Chang Liu. Apple alleges that Liu stole an Apple laptop.

The company is currently seeking damages and injunctions to prevent the further use of its intellectual property, though it has remained silent on whether this litigation will terminate the existing partnership that powers Apple Intelligence features.

As the case proceeds in the Northern District of California, the primary question remains whether the court will find evidence of a coordinated effort to steal trade secrets or merely the standard movement of talent within the competitive AI sector. Meanwhile, Apple has begun moving away from OpenAI’s technology for its own products, with the updated Siri assistant scheduled for release this fall utilizing Google’s Gemini models instead.

Find more reporting in our Technology section.