Apple Sues OpenAI, Alleging Company Plundered Trade Secrets for A.I. Hardware

By the Editorial Team · Sunday, July 12, 2026

Apple has sued OpenAI, accusing the AI company of stealing trade secrets related to unreleased hardware by recruiting Apple employees and obtaining confidential information through former staff members. The lawsuit highlights growing tensions as OpenAI expands its hardware ambitions, complicating prior collaborations between the two firms and signaling intensified competition in the tech industry.

Apple has filed a lawsuit against OpenAI, accusing the artificial intelligence company of misappropriating trade secrets related to unreleased hardware products. The suit, lodged in the U.S. District Court for the Northern District of California on Friday, alleges that OpenAI solicited current and former Apple employees for confidential information and requested that candidates bring Apple device components or prototypes to job interviews.

According to the complaint, an OpenAI employee downloaded internal Apple documents from a company-issued laptop. Both this employee and OpenAI’s chief hardware officer, Tang Tan—who previously held a leadership role at Apple and co-founded the design studio IO acquired by OpenAI in 2023—are named as defendants. Apple contends that OpenAI leveraged the stolen information to approach Apple’s manufacturing partners, including seeking demonstrations of Apple’s metal finishing techniques.

Apple states it raised concerns about the potential misuse of its proprietary information in a letter to OpenAI in February, but received no response. The technology giant claims OpenAI’s emerging hardware business is “rotten to its core” due to its reliance on illicitly obtained trade secrets.

OpenAI denied the allegations through a spokesperson, emphasizing that the company has “no interest in other companies’ trade secrets” and remains dedicated to developing innovative technologies.

The dispute marks a significant escalation in the relationship between the two Silicon Valley firms. Earlier in 2024, Apple partnered with OpenAI to integrate the latter’s AI models into its products, including the digital assistant Siri. However, OpenAI reportedly grew dissatisfied with how Apple incorporated ChatGPT technology and had considered legal action. In January, Apple announced a new collaboration with Google to power its AI initiatives, signaling a shift away from OpenAI.

OpenAI has been quietly building a new hardware division focused on AI-powered devices intended for wearability and seamless interaction, such as audio and video recording and voice command responses. The company acquired IO, a design firm founded by Apple's former design chief Jony Ive, in a $6.5 billion deal last year. IO brought a team of approximately 559 engineers and designers into OpenAI, including Tang Tan, who previously led design efforts for prominent Apple products like the iPhone and Apple Watch.

Apple’s lawsuit also accuses Tan of instructing former Apple employees now working at OpenAI on how to avoid triggering Apple's security protocols for departing staff. More than 400 former Apple employees are alleged to be currently working at OpenAI, highlighting the scale of personnel movement between the two companies.

Representatives for OpenAI declined to comment further, and Tang Tan did not respond to requests for comment. The legal battle unfolds as both companies navigate the highly competitive AI and technology landscape.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.