Apple Inc. filed suit against OpenAI in the U.S. District Court for the Northern District of California on July 10, 2026, <cite index="6-1">accusing OpenAI of trade secret misappropriation and breach of contract.</cite> The 41-page complaint names OpenAI, its hardware affiliate io Products, and two individual defendants: <cite index="2-7">Tang Tan, OpenAI's hardware chief who previously served as vice president of product design at Apple, and Chang Liu, a former Apple electrical engineer who now works at OpenAI.</cite>
Background
<cite index="1-15,1-18">The lawsuit marks a striking reversal for two companies that entered into a high-profile partnership in 2024, when ChatGPT was integrated into the iPhone's operating system.</cite> Relations deteriorated after OpenAI moved aggressively into consumer hardware. <cite index="3-4">OpenAI recruited from Apple, including hiring some of its top product leaders, and in May 2025 announced it was buying Jony Ive's io Products for $6.4 billion.</cite> <cite index="3-5">OpenAI CEO Sam Altman has made no secret that he envisions a new class of AI gadgets that would replace smartphones as the primary consumer tech device.</cite> <cite index="3-6">Ive is not named in the Apple lawsuit.</cite>
Key Allegations
Apple's complaint asserts an institutional-level pattern of wrongdoing rather than isolated employee misconduct. <cite index="1-17">"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," Apple stated in the filing.</cite>
Regarding Tan, <cite index="2-8,2-9">the suit alleges he began emailing himself information about Apple's suppliers before leaving the company, and that he would use internal Apple codenames when interviewing candidates for OpenAI positions who still worked at Apple, in an effort to extract further confidential information.</cite> <cite index="1-21">"He has directed job candidates still working for Apple to bring 'actual parts' from Apple to their interviews for 'show and tell' sessions," Apple said in the filing.</cite>
Regarding Liu, <cite index="5-6">the lawsuit alleges he kept a work-issued Apple laptop and discovered a bug that allowed him to access Apple's cloud file storage after leaving the company and while employed by OpenAI.</cite> <cite index="6-17">Liu 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," according to the complaint.</cite>
The filing also alleges coordinated evasion of Apple's internal security processes. <cite index="15-2">The complaint claims OpenAI circulated an internal Apple document bearing a "Need to know" designation to new hires, with details on how to avoid the "dreaded walkout," which would immediately remove departing employees from Apple after giving notice rather than allowing them the typical two-week access window.</cite>
Beyond personnel, <cite index="11-7">Apple alleges defendants "used confidential Apple information in approaching Apple's trusted partners, even having one carry out a specific trade secret metal-finishing technique for OpenAI, misleading the partner to believe they had Apple's permission to do so."</cite>
Procedural Context and Remedies
<cite index="13-33,13-34">Apple says it first raised concerns with OpenAI directly in February, asking the company to investigate and address the issue — but OpenAI never responded.</cite> <cite index="1-12">Apple is seeking damages, injunctions, and an order to force OpenAI to stop using its trade secrets.</cite> <cite index="13-10">The filing notes that over 400 former Apple employees now work at OpenAI.</cite>
Broader Implications
<cite index="1-8,1-9">The mounting legal woes present another risk to OpenAI as it gears up for what is expected to be a historic initial public offering (IPO). Apple's complaint comes two months after OpenAI won a high-profile trial against Elon Musk.</cite> <cite index="11-13">OpenAI confidentially filed its S-1 registration paperwork last month, a week after rival Anthropic filed its own S-1.</cite>
OpenAI denied the allegations. <cite index="3-10,3-11">OpenAI told Fortune in a statement that "we have no interest in other companies' trade secrets," adding that it remains "focused on building innovative technology that empowers people everywhere."</cite>