Apple has sued OpenAI, accusing the ChatGPT maker of running a coordinated campaign to steal confidential hardware secrets. The Apple OpenAI trade secrets lawsuit was filed on July 10 in the US District Court for the Northern District of California. It names OpenAI, its hardware unit io Products, and two former Apple engineers as defendants.
The filing marks a dramatic collapse of a partnership that once looked like a model of Silicon Valley cooperation. Apple built ChatGPT directly into Apple Intelligence in 2024. Now the two companies are fighting each other in federal court instead.
Here is what Apple is alleging, who is involved, and why this case could affect OpenAI’s hardware ambitions and its upcoming IPO.
What Apple’s Lawsuit Against OpenAI Actually Claims
Apple’s 41-page complaint accuses OpenAI of trade secret misappropriation and breach of contract. The company says the theft was not the work of a few rogue staffers. Instead, Apple claims the misconduct was “normalized and exemplified by leadership” at OpenAI, according to TechCrunch’s review of the filing.
Apple says the goal was simple. OpenAI wanted inside information on Apple’s unreleased products, supplier relationships, and manufacturing processes to speed up its own consumer AI hardware. More than 400 former Apple employees now work at OpenAI, and Apple argues that is not a coincidence.
The Role of OpenAI’s Hardware Chief
Much of the complaint centers on Tang Tan, OpenAI’s Chief Hardware Officer and a former Apple vice president of product design. Apple alleges Tan began emailing himself confidential supplier information before he left the company. It also claims he used internal Apple codenames during OpenAI job interviews to extract more details from candidates who still worked at Apple.
According to Al Jazeera’s coverage of the complaint, Apple says Tan asked job candidates to bring actual Apple hardware components, including batteries and logic boards, to interviews for “show and tell” sessions. One candidate reportedly said he did not even realize he could take the parts from the office.
A Second Engineer Accused of Accessing Apple’s Systems
The lawsuit also targets Chang Liu, a former senior Apple electrical engineer who joined OpenAI in January 2026. Apple claims Liu kept his company laptop after leaving and later gained access to a former colleague’s Apple work computer. Using that access, Apple alleges he downloaded dozens of confidential files covering unreleased products, technical specifications, and engineering presentations.
Apple’s filing includes a message it attributes to Liu, in which he reportedly joked about finding a way into Apple’s internal network storage. The company is using that exchange as evidence that the access was deliberate rather than accidental.
OpenAI’s Response to the Allegations
OpenAI initially issued a brief denial. A company spokesperson told reporters, “We have no interest in other companies’ trade secrets,” and said OpenAI remains focused on building its own technology, as CNBC reported shortly after the suit was filed.
Days later, OpenAI took a firmer position. On July 14, the company said it was not aware of any evidence supporting Apple’s claims, according to TechCrunch’s report on OpenAI’s pushback. That statement signals OpenAI plans to contest the case rather than settle quickly.
How a Partnership Turned Into a Courtroom Fight
Apple and OpenAI looked closely aligned as recently as 2024, when Sam Altman visited Apple’s headquarters for the ChatGPT integration announcement. The relationship began to cool once OpenAI moved into hardware. In 2025, OpenAI acquired io Products, the startup founded by former Apple design chief Jony Ive, in a deal reportedly worth more than six billion dollars.
Ive now leads OpenAI’s device work, though he is not named as a defendant in Apple’s lawsuit.
Tension has run both ways. Bloomberg reported that OpenAI had separately been weighing legal action against Apple over how ChatGPT is integrated into Apple Intelligence, alleging breach of contract on Apple’s part. Apple, meanwhile, is moving forward with a revamped Siri this fall built on Google’s Gemini models rather than OpenAI’s technology, a sign the companies are drifting further apart on the product side too.
Apple says it first raised its concerns privately, sending OpenAI a letter in February. The company claims it received no meaningful response before deciding to sue.
What Apple Wants the Court to Do
Apple is not simply seeking damages. The company is asking the court to:
- Bar OpenAI from using or disclosing any Apple trade secrets
- Force OpenAI to return all confidential Apple materials in its possession
- Require OpenAI to preserve evidence relevant to the case
That combination of requests suggests Apple wants to slow down OpenAI’s hardware program, not just win a financial settlement.
Why This Case Matters Beyond Apple and OpenAI
The timing is notable. OpenAI is preparing for what is expected to be one of the largest IPOs in tech history, and a high-profile trade secrets case adds legal risk right as the company tries to reassure investors. CNN noted that the lawsuit could complicate both the IPO process and the unveiling of OpenAI’s first hardware device, which had been expected later this year.
This is also not OpenAI’s only trade secrets fight. Elon Musk’s xAI filed a similar lawsuit against OpenAI last year, accusing the company of hiring away engineers to obtain information about its Grok chatbot. Taken together, the cases point to a broader pattern of legal battles over talent and technology as AI companies race to build competing hardware and models.
A Rivalry That Could Reshape the AI Hardware Race
Apple’s lawsuit turns what was once a flagship AI partnership into one of the most closely watched legal fights in tech right now. The Apple OpenAI trade secrets lawsuit raises real questions about how OpenAI built its hardware program and how much of that work depended on former Apple insiders.
OpenAI has pushed back firmly, and the case is still in its early stages. But the accusations are detailed enough that neither company is likely to walk away quietly.
Expect this story to develop quickly over the coming months, especially as OpenAI moves closer to unveiling its first hardware product and its IPO. For now, Apple has made its position clear: it believes OpenAI’s device ambitions were built, at least in part, on Apple’s own confidential work.
Prince Anichi
Founder and Lead Technology Editor at Ortechy. Covering digital economy shifts, tech ecosystems across Africa, cybersecurity intelligence, and emerging software platforms.
