Apple sued OpenAI on July 10, 2026, in a federal court in California, accusing the ChatGPT manufacturer of systematic theft of hardware trade secrets. Named in the lawsuit are OpenAI’s hardware chief Tang Tan and former Apple engineer Chang Liu; according to Apple, more than 400 former Apple employees now work at OpenAI, a number that has not been independently verified.
The complaint describes targeted poaching with internal code names
The lawsuit filed on Friday in the U.S. District Court for the Northern District of California describes, according to TechCrunch, a multi-step pattern. OpenAI allegedly used internal project code names when recruiting Apple personnel to specifically query knowledge about unreleased devices. Applicants were asked to bring Apple hardware components to interviews and were questioned about details regarding parts, manufacturing processes, and suppliers. Departing employees were instructed by OpenAI to conceal their new employment and to circumvent Apple’s security procedures upon exit. The case of former systems electrical engineer Chang Liu, who worked for Apple for eight years, is particularly serious: after his transition to OpenAI in 2026, he retained his Apple laptop and downloaded dozens of confidential files from internal cloud storage through a security vulnerability. The allegedly stolen information included technical specifications of unreleased technologies, design drawings, and a proprietary process for metal finishing that OpenAI also shared with external suppliers. Apple believes that it has not yet fully grasped the actual extent of the alleged misconduct and is seeking not only an injunction but also the preservation of all relevant evidence.
OpenAI builds its own hardware business with former Apple team
The central figure in the lawsuit is Tang Tan, Chief Hardware Officer of OpenAI since 2025 and previously Vice President of Product Design for iPhone and Apple Watch for 24 years. Apple accuses him of addressing current colleagues with internal code names and sharing proprietary offboarding documents with applicants. Tan works closely with former Apple design chief Jony Ive, whose company io Products was acquired by OpenAI in May 2025; Ive now leads the company’s device division, which plans to launch its first AI-native hardware product in 2027. Apple describes this hardware business in the complaint as “rotten to its core” – decayed at its core due to the unlawful use of stolen trade secrets. The allegations range from ordinary employees to the executive level and also include external business partners, reports Engadget. OpenAI denies the allegations: Communications Director Drew Pusateri states that the company has no interest in the trade secrets of other companies and focuses on its own technology. According to Apple, it had already contacted OpenAI in writing in February 2026 without receiving a response.
It will be crucial whether Apple can prove that the described actions were systematically orchestrated by OpenAI rather than being limited to individual employees – this will affect the amount of potential damages that a court would have to quantify in further proceedings. The legal dispute hits OpenAI precisely during the development phase of the hardware product planned for 2027, while both companies continue to collaborate on the existing ChatGPT integration in Apple Intelligence.
