Apple has filed a federal lawsuit accusing OpenAI of systematically stealing confidential hardware designs to accelerate its own AI device ambitions. The case marks a sharp turn from their recent Siri integration partnership to a high-stakes intellectual property battle over consumer AI hardware.
Apple Sues OpenAI Over Alleged Trade Secret Theft
Apple has filed a federal lawsuit against OpenAI, accusing the ChatGPT maker of orchestrating a systematic campaign to steal confidential hardware secrets as it races to build AI-powered consumer devices. The suit, filed Thursday in the Northern District of California, marks a sharp break in a relationship that only months ago was centered around integrating ChatGPT into Siri.
The partnership was supposed to be a strategic win for both companies. Apple got early access to generative AI for its devices, while OpenAI gained a massive distribution channel. That deal has clearly soured. Apple’s 41-page complaint claims OpenAI institutionalized the collection of Apple’s confidential information, targeting departing employees and actively encouraging them to bring proprietary components to job interviews.
The Mechanics of the Alleged Scheme
Tang Tan, OpenAI’s Chief Hardware Officer and a former Apple VP of Product Design, is named directly. The suit alleges Tan used his knowledge of Apple’s exit procedures to help staff covertly deliver sensitive data. He reportedly warned departing employees not to mention OpenAI to their current employers so they could extend their tenure, and improperly kept an internal managers’ document detailing departure security protocols.
Then there’s Chang Liu, a former Apple electrical engineer also listed as a defendant. Apple claims Liu kept an issued laptop after leaving, exploited a network vulnerability to download dozens of confidential documents, and even texted a current Apple contact about retaining access. “LOL, I found out I can access the network storage, so funny,” the complaint quotes Liu writing. It’s not the kind of text you expect to see in a legitimate IP dispute.
Apple alleges more than 400 former employees now work at OpenAI, with the misconduct occurring at every level. OpenAI also reportedly used Apple’s confidential hardware specs to approach suppliers, tricking one into using a specific metal-finishing technique by claiming it had Apple’s blessing. The company doesn’t hide its disdain in the filing. Apple’s attorneys write that OpenAI’s hardware business is “rotten to its core” because of its illegal reliance on misappropriated secrets.
From Strategic Partners to Legal Adversaries
This lawsuit didn’t come out of nowhere. Apple and OpenAI first partnered in 2024 to bring ChatGPT to Siri and Apple Intelligence. The relationship began cooling as Apple quietly expanded its AI work with Google’s Gemini, while OpenAI aggressively pivoted toward physical hardware. The acquisition of io Products, Jony Ive’s AI device startup, in a multibillion-dollar deal last year fundamentally changed OpenAI’s trajectory.
Apple claims OpenAI is under intense pressure to debut a hardware device that might eventually replace the iPhone, leading the company to take shortcuts. Apple says OpenAI “turned to trade secret misappropriation to free-ride off Apple’s decades of innovation.” The suit was filed Friday, July 10, 2026, after Apple’s attempts to contact OpenAI in February went unanswered. OpenAI’s CEO, Sam Altman, and Ive are referenced in the complaint but not named as defendants.
Apple is seeking an injunction to stop OpenAI from using or disclosing the alleged secrets, alongside unspecified damages and breach of contract claims against Tan and Liu. The ongoing Siri partnership isn’t directly at issue right now, but a prolonged legal battle could easily jeopardize it. If Apple prevails, OpenAI could be forced to abandon or heavily redesign its AI hardware push. For what it’s worth, these hardware cases rarely move fast.
The case raises familiar questions about employee mobility in the AI race and how companies protect confidential information from departing staff. AI-powered hardware from OpenAI is already facing potential delays, and the outcome will likely shape market dynamics for years. Keep in mind that these cases take time to unwind, and the tech industry will be watching closely to see if OpenAI’s hardware ambitions survive the lawsuit.
