Apple sues OpenAI entities and employees over alleged trade-secret theft

Apple filed the lawsuit on July 10, 2026, in the U.S. District Court for the Northern District of California, San Jose Division.[1][2] The complaint names Chang Liu, Tang Yew Tan, OpenAI Foundation, OpenAI Group PBC and io Products, LLC.[1] Apple alleges trade-secret misappropriation and breach of contract, describing a pattern of trade-secret theft by OpenAI employees who formerly worked at Apple.[2] The company is seeking a jury trial, damages and an injunction that would bar OpenAI from using its technology.[5] These are allegations in Apple’s complaint, not findings stated in the evidence.

Apple alleges that Liu accessed and downloaded dozens of confidential hardware-related files while developing hardware for OpenAI.[2] It also alleges that he coached a former Apple colleague on copying confidential files and avoiding scrutiny from Apple’s security team.[2] Apple says Tan worked at the company for 24 years and is now OpenAI’s chief hardware officer.[2] The complaint further alleges that Tan emailed himself information about Apple suppliers and internal consumer-electronics industry summaries.[2] The evidence describes these as Apple’s claims; it does not establish that a court has accepted them.

Apple alleges that OpenAI asked Apple job candidates to bring CAD or design materials and prototypes to interviews.[3] The Verge reported Apple’s statement that more than 400 former Apple employees now work at OpenAI.[3] OpenAI says Apple’s outside lawyers emailed the wrong person in February, and says Apple employees asked Liu to help locate Apple information after he left the company.[4] OpenAI also says it does not want or have Apple trade secrets, and said it remained focused on building technology that empowers people.[4][3] The competing accounts make the distinction between allegations and responses important for readers.

The lawsuit followed a partnership under which ChatGPT features were to be added to Siri and Apple Intelligence.[5] Stocktwits reported that OpenAI bought io Products, a startup co-founded by Tan and former Apple design chief Jony Ive, for more than $6 billion.[5] The Verge reported that OpenAI’s first hardware product was expected to arrive the following year, while Bloomberg reported that the first consumer hardware product would be a portable, screen-free smart speaker.[3][6] Stocktwits said Apple shares were flat after hours at the time of its report and had gained about 15% year to date.[5]