Apple Sues OpenAI and Former Employees Over Alleged Trade Secrets Theft

In a dramatic escalation, Apple has filed suit against OpenAI and two ex-employees, alleging a systematic campaign to misappropriate confidential hardware data. We unpack the claims, context, and implications for both tech giants.

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1. The Lawsuit Unveiled

On July 10, 2026, Apple initiated legal action against OpenAI and two former employees, Tang Tan and Chang Liu, in the U.S. District Court for the Northern District of California, accusing them of misappropriating its trade secrets . The complaint frames the allegations as a “coordinated pattern of misconduct at an institutional level,” intended to bolster OpenAI’s emerging hardware ambitions . Apple is seeking injunctive relief, monetary damages, and a declaratory judgment to halt further misuse of its proprietary information .

2. Who Are the Defendants—and What’s Alleged?

Tang Tan, OpenAI’s chief hardware officer and a former Apple vice president who worked on the iPhone and Apple Watch, is accused of encouraging Apple employees to bring physical components and confidential materials into OpenAI interviews . Chang Liu, a former senior system electrical engineer at Apple who joined OpenAI in January 2026, allegedly retained an Apple-issued laptop after departure, used it to access Apple’s cloud storage, and downloaded confidential hardware files . The lawsuit also alleges OpenAI solicited CAD/design artifacts, prototypes, supplier information, and internal terminology from departing Apple staff .