Apple Sues OpenAI Over Alleged Theft of AI Trade Secrets

Apple has initiated a high-stakes legal battle against OpenAI, filing a lawsuit in a Northern California federal court on July 10, 2026. The Cupertino-based giant accuses the AI startup of orchestrating a coordinated campaign to misappropriate proprietary information to accelerate its development of proprietary AI-first hardware. Apple alleges that OpenAI’s hardware division, which includes several former Apple employees, systematically harvested confidential design specifications and manufacturing methods to bypass the lengthy development process required for its upcoming personal AI devices.

The complaint details specific instances of alleged theft, highlighting the actions of former senior electrical engineer Chang Liu. Apple claims Liu retained access to internal network storage after his departure in January 2026, downloading sensitive hardware schematics and technical project data while allegedly joking about the security flaw in messages to former colleagues. Furthermore, the lawsuit names Tang Tan, OpenAI’s chief hardware officer and a former Apple executive, accusing him of encouraging job candidates from Apple to bring proprietary prototypes and internal schematics to interviews, thereby breaching contractual obligations and intellectual property standards.

This litigation signals a definitive collapse of the strategic partnership formed in 2024, which initially saw Apple integrate ChatGPT into Siri and other core software. OpenAI, which is reportedly preparing for a significant initial public offering, now faces a major hurdle as Apple seeks a court order to freeze the use of its technology and destroy any misappropriated materials. As OpenAI attempts to transition into hardware with designs led by Jony Ive, the legal discovery process could delay product timelines, creating significant uncertainty for investors and potentially impacting the competitive landscape for next-generation personal computing devices in India and globally.