Apple Files Lawsuit Against OpenAI for Trade Secret Misappropriation
On July 10, 2026, at 1:32 PM PDT, Apple filed a lawsuit against OpenAI in the U.S. District Court for the Northern District of California, alleging trade secret theft and breach of contract. The iPhone maker claims that the misconduct was directed by OpenAI’s senior leadership, including individuals such as Tan, who previously spent 24 years at Apple as VP of product design for the iPhone and Apple Watch. The lawsuit accuses Tan of using Apple’s confidential project code names during OpenAI’s recruiting process, asking job candidates to bring Apple hardware components to interviews, coaching departing Apple employees on how to evade security procedures, and soliciting details about unannounced products.
The Allegations
Apple alleges that the behavior of former employees is part of OpenAI’s broader strategy to extract confidential information. Specific accusations include:
- Asking Apple employees to bring designs and prototypes to interviews.
- Inquiring about component and vendor selection processes.
- Using a proprietary metal finishing technique after allegedly misleading a partner into believing it had Apple’s permission.
The lawsuit also references Liu, a former Apple senior systems electrical engineer who spent eight years at the company. Liu is accused of failing to return an Apple-issued laptop after leaving for OpenAI in 2026 and using the computer to download confidential Apple technical documents. These stolen documents reportedly included information about unannounced technologies, features, and products, such as technical specifications, engineering presentations, and proprietary project data. Liu is also alleged to have shared Apple’s confidential information with other Apple employees applying for jobs at OpenAI and advised at least one on what to study before their interview.
Context and Timing
The accusations come at a time when OpenAI is rumored to be developing its own hardware device, which would likely compete with the iPhone. In April, industry analyst Ming-Chi Kuo suggested that OpenAI’s new device would rely on AI agents instead of apps, posing a significant threat to Apple’s core hardware business. Additionally, Apple’s former lead designer Jony Ive’s device startup io was involved in a $6.5 billion deal to aid OpenAI with its hardware ambitions. While io was named in the filing, Ive was not.
Apple’s Response and Demands
Apple sent a letter to OpenAI in February 2026 to raise its concerns but received no response. The company says its ongoing investigation revealed that OpenAI and its partners have used Apple’s confidential information while developing their own hardware. In the complaint, Apple states: “This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership. As a natural result, OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.”
Apple is asking the court to bar OpenAI from using or disclosing its trade secrets, require the return of confidential materials, and preserve evidence. In a prepared statement, Apple said: “At Apple, our teams are constantly developing breakthrough technologies… Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products. We will always defend our teams’ hard work and innovations.”
OpenAI has been asked for comment. This story is developing and will be updated. The full filing is available online.