News

Apple Sues OpenAI, Accuses Former Employees of Stealing Hardware Trade Secrets

• By John K. Waters
• 07/13/2026

Apple has sued OpenAI in federal court, alleging that former employees misappropriated confidential hardware designs and manufacturing information to support OpenAI's push into consumer devices, a filing that marks a sharp break in a relationship that began with a high-profile software partnership less than two years ago.

The lawsuit places new legal pressure on OpenAI's hardware ambitions and underscores the risks posed by Apple's claims that the company recruited former Apple engineers as OpenAI moves beyond software into consumer devices.

Apple and OpenAI struck up a partnership in 2024 to integrate ChatGPT into Apple's operating systems, an arrangement announced with OpenAI chief executive Sam Altman visiting Apple's headquarters, according to Bloomberg. Relations cooled after OpenAI moved into hardware, and Apple's forthcoming version of Siri is built on Google's Gemini models rather than OpenAI's technology.

The complaint, filed July 10 in the U.S. District Court for the Northern District of California and assigned to Magistrate Judge Virginia K. DeMarchi, names OpenAI Foundation, OpenAI Group PBC and io Products LLC as corporate defendants, alongside two individuals: Chang Liu, a former Apple senior systems electrical engineer, and Tang Yew Tan, OpenAI's chief hardware officer, according to the case docket published by CourtListener.

"This case is about Apple's former employees stealing Apple's trade secrets for the benefit of OpenAI. Apple brings this suit to put a stop to it," the complaint states.

Allegations against Liu
According to the complaint, Liu left Apple on January 22, 2026, after eight years with the company, and did not complete Apple's standard exit process, including confirming return of company devices, scheduling an exit interview, or signing a confidentiality reminder.

Apple alleges that in February, Liu discovered he retained unauthorized access to Apple's internal network storage, a repository containing engineering files and product documentation, and that instead of reporting the lapse, he continued to use it. Apple also alleges he downloaded a compilation of technical files totaling more than 1,000 pages, including detailed manufacturing documentation for circuit boards used in Apple products.

The filing also names Yu-Ting "Alyssa" Peng, described as a former Apple employee whom Apple alleges shared confidential updates with Liu while still employed at Apple before she herself joined OpenAI in April. Apple further alleges that Liu separately coached another former colleague on which of Apple's confidential materials to study ahead of an OpenAI interview and directed her to communicate via a separate messaging application to conceal the activity.

Allegations against Tan and OpenAI leadership
Tan spent 24 years at Apple, most recently as vice president of product design for the iPhone and Apple Watch, before departing in February 2024 to join designer Jony Ive's startup, io, which OpenAI later acquired for roughly $6.4 billion. Tan now serves as OpenAI's chief hardware officer.

Apple alleges that Tan directed job candidates who were still employed at Apple to bring "actual parts," including batteries, logic boards, and system-in-package components, to interviews for "show and tell" sessions, and that he used Apple's internal project code names to elicit further confidential information. Apple further alleges that Tan possessed and distributed an internal Apple document outlining departure security protocols to incoming OpenAI hires before they gave notice at Apple.

The complaint states: "This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets and confidential information."

Apple further alleges that OpenAI approached at least two of Apple's manufacturing partners using insider terminology, including asking one partner to carry out a proprietary metal-finishing technique after allegedly leading the partner to believe OpenAI had Apple's authorization.

Company statements
An Apple spokesperson said in a statement: "At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes, and products."

OpenAI's director of strategic communications, Drew Pusateri, responded on social media with a brief statement: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere." OpenAI did not address the specific allegations concerning Liu, Tan, or the company's manufacturing partners.

Context
Apple's complaint states that the lawsuit does not concern that commercial software partnership. Separately, Bloomberg and the New York Times have reported that OpenAI had been preparing its own legal action against Apple over how the ChatGPT integration was handled, though no such filing from OpenAI has been made public.

Apple's filing says more than 400 former Apple employees now work at OpenAI. It is also not the first trade secret dispute tied to OpenAI's hardware unit. Hardware startup iyO sued OpenAI and io Products over branding shortly after their partnership was announced, then amended its complaint in March 2026 to add trade secret claims naming Tan.

Apple is seeking injunctive relief barring OpenAI from further use or disclosure of what it describes as its trade secrets, requiring the return of any confidential materials in the defendants' possession, ordering the preservation of evidence, and awarding unspecified damages. The case arrives roughly two months after OpenAI prevailed in a separate trial against Tesla and SpaceX chief executive Elon Musk over claims related to OpenAI's nonprofit origins, and as the company prepares for what is expected to be a large initial public offering, according to CNBC.