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Apple accuses OpenAI of trade secret theft in new lawsuit

Apple has sued OpenAI in federal court, accusing it of stealing trade secrets via ex-employees. Apple's lawsuit claims OpenAI's hardware arm is compromised due to reliance on these secrets, marking a sharp turn in their relationship.

BRIC Team
BRIC Team
Jul 10, 2026 · 2 min read · 16 views
Apple accuses OpenAI of trade secret theft in new lawsuit

Key Takeaways

  • Apple's lawsuit against OpenAI was filed in federal court on Friday, alleging theft of trade secrets through hiring former employees.
  • The complaint names Chang Liu and Tang Yew Tan, former Apple employees, as key figures in the alleged information theft.
  • OpenAI's spokesperson Drew Pusateri stated, 'We have no interest in other companies' trade secrets,' denying any wrongdoing.
  • Apple's legal action follows its shift to using Google's Gemini model for AI functionalities after previously integrating OpenAI's ChatGPT.
  • The lawsuit seeks unspecified monetary damages and aims to prevent OpenAI from using any allegedly misappropriated information.

Apple Inc. is taking OpenAI to court,accusing the AI firm of swiping trade secrets by hiring ex-Apple staff. lawsuit, filed Friday, names OpenAI and two employees, along with io Products,for systematically lifting confidential details on Apple's product development.

The complaint points fingers at Chang Liu,an electrical engineer who spent eight years at Apple,and Tang Yew Tan, a former VP of design for iPhone and Apple Watch, now OpenAI's chief hardware officer. Apple claims they facilitated alleged theft by passing internal info.

OpenAI allegedly gained insights into secret projects and unreleased products. lawsuit says OpenAI interviewed current Apple staff,trying to extract more secrets, even asking them to bring “actual parts” for “show and tell.”

OpenAI,readying its first hardware—a keyboard for its AI tools—denies the allegations. Spokesperson Drew Pusateri said,"We have no interest in other companies' trade secrets," stressing a focus on innovation.

This lawsuit marks a shift between the tech giants. Apple’s outgoing CEO Tim Cook once integrated OpenAI's ChatGPT into Apple devices. But now Apple uses Google's Gemini model for AI, as tension rises.

Even after Cook's April departure announcement,when Sam Altman from OpenAI praised him as "a legend," the relationship soured. Apple now accuses OpenAI of extracting its secrets.

Apple also targets io Products, a startup by Jony Ive, an Apple veteran. OpenAI bought io Products last year, adding layers to the legal tangle. Apple says the defendants exploited its secrets to boost OpenAI's hardware market entry .

Apple's filing describes OpenAI's hardware unit as "rotten to its core," alleging widespread misconduct. It seeks to bar OpenAI from using the stolen info and demands damages .

Apple tried addressing concerns with OpenAI in February but was shrugged off. This legal move highlights the fierce tech industry rivalry,as firms like OpenAI dive into hardware.

The lawsuit could have major repercussions,especially with OpenAI eyeing public offering. How tech firms handle employee shifts and proprietary info could be reshaped...

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