Apple Files Lawsuit Against OpenAI Over Alleged Trade Secret Theft
In a stunning legal development that sent shockwaves through Silicon Valley, Apple lodged a lawsuit on Friday, July 11, 2026, against OpenAI in the U.S. District Court for the Northern District of California. The tech giant alleges a coordinated effort to steal trade secrets to boost OpenAI’s clandestine hardware pursuits.
The lawsuit singles out Tang Tan, OpenAI’s Chief Hardware Officer and a seasoned Apple veteran of 24 years. Tan, who previously held the position of VP of product design for the iPhone and Apple Watch, is accused of orchestrating a scheme to siphon off confidential Apple technology. The complaint details that Tan utilized Apple’s internal project code names during recruitment interviews, encouraged job applicants to bring actual Apple hardware components for “show and tell” sessions, and guided departing Apple employees on how to bypass the company’s internal security checks.
Also implicated is Chang Liu, a former senior systems electrical engineer who dedicated eight years to Apple before transitioning to OpenAI in January 2026. Apple accuses Liu of failing to return a company-issued laptop, which he allegedly used to download dozens of confidential files — including technical specifications and data on unreleased products — while working on hardware development for OpenAI.
Apple is not only seeking damages and injunctions but also an order compelling OpenAI to cease using its trade secrets. This lawsuit throws a wrench into the works of OpenAI’s highly anticipated IPO, which was expected to take place as early as September 2026. OpenAI has denied the allegations.