Apple sued OpenAI on July 10 in California federal court, alleging the AI company orchestrated a scheme to steal trade secrets as it develops its first consumer hardware device. The 41-page complaint names OpenAI's chief hardware officer Tang Tan and ex-Apple engineer Chang Liu, claiming they misappropriated product designs, manufacturing processes, and supply chain strategies. The lawsuit arrives as OpenAI prepares to launch its first physical device in 2026 and pursues a potential initial public offering near an $852 billion valuation, marking a dramatic reversal from the companies' 2024 partnership that integrated ChatGPT into the iPhone operating system.
Apple Alleges OpenAI Orchestrated Trade Secret Theft Scheme
The lawsuit filed Friday in federal court alleges OpenAI orchestrated a scheme to obtain Apple's product designs, manufacturing processes and supply chain strategies as the AI firm builds its first consumer hardware device. 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." The filing argues OpenAI's hardware business "rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets."
Tang Tan and Chang Liu Named in 41-Page Court Filing
Tang Tan, OpenAI's chief hardware officer and a 24-year Apple veteran, allegedly used Apple's confidential project code names while recruiting, directed candidates still employed by Apple to bring hardware components to their interviews, and coached departing employees on evading Apple's security procedures. Chang Liu, a senior systems electrical engineer who spent eight years at Apple, allegedly failed to return an Apple-issued laptop after joining OpenAI in 2026 and used the machine to download confidential technical documents.
![Allegations against Tang included in the lawsuit]()
The stolen material cited includes technical specifications, engineering presentations and a proprietary metal finishing technique that Apple claims was misused in OpenAI's hardware development.
Apple Requests Court Bar OpenAI from Using Trade Secrets
Apple is asking the court to bar OpenAI from using the trade secrets, force the return of confidential materials and preserve evidence. No hearing date has been set.
Companies' 2024 Partnership Turned to Legal Conflict
The clash represents a complete reversal from 2024, when the two companies struck a landmark deal to integrate ChatGPT into the iPhone's operating system. Relations cooled after OpenAI bought io Products, the device startup founded by former Apple design chief Jony Ive, for $6.4 billion in May 2025 and confirmed plans to ship its first physical AI device in 2026.
OpenAI Denies Claims Amid 2026 IPO Preparations
OpenAI pushed back on the allegations, explicitly stating: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." The suit lands at a delicate moment for OpenAI. The company is widely expected to pursue a public listing in the second half of 2026, with private funding rounds valuing it around $852 billion, part of an initial public offering wave that some analysts argue could pull capital from bitcoin and other risk assets as investors chase AI exposure.
FAQ
What did Apple accuse OpenAI of in the July 10 lawsuit?
Apple accused OpenAI of orchestrating a scheme to steal trade secrets including product designs, manufacturing processes, and supply chain strategies. The 41-page complaint filed in California federal court alleges theft occurred "at every level" of OpenAI's organization as the AI company develops its first consumer hardware device.
Who are the individuals named in Apple's lawsuit against OpenAI?
Apple named Tang Tan, OpenAI's chief hardware officer and a 24-year Apple veteran, and Chang Liu, a senior systems electrical engineer who spent eight years at Apple. The complaint alleges Tang Tan used confidential Apple project code names while recruiting and coached employees on evading security procedures, while Chang Liu allegedly kept an Apple-issued laptop and downloaded confidential files after joining OpenAI in 2026.
How did Apple and OpenAI's relationship change before the lawsuit?
The two companies struck a landmark partnership deal in 2024 to integrate ChatGPT into the iPhone's operating system. Relations cooled after OpenAI bought io Products for $6.4 billion in May 2025 and confirmed plans to ship its first physical AI device in 2026, leading to the July 10 lawsuit filed by Apple in California federal court.
