Apple filed a lawsuit against OpenAI on July 10, 2026, alleging theft of trade secrets. The complaint names OpenAI, IO Products (the Jony Ive firm OpenAI acquired), and two former Apple employees.

The defendants are Tang Tan, OpenAI’s chief hardware officer and ex-Apple VP, and Chang Liu, who left Apple for OpenAI. Apple alleges systematic theft of confidential data about unreleased hardware, vendor details, and supply chain information.

The Core Allegation

Chang Liu allegedly failed to return an Apple-issued laptop after leaving for OpenAI and used it to download confidential Apple technical documents. Apple alleges over 400 former Apple employees now work at OpenAI.

Apple also claims OpenAI coached departing Apple employees on how to evade Apple’s security procedures, including circulating an internal Apple document on how to avoid immediate removal after giving notice.

The Hardware Play

OpenAI spent the last year expanding into consumer hardware. It acquired Jony Ive’s io Products for about $6.5 billion. It hired dozens of veteran hardware engineers from Apple, Qualcomm, and Samsung.

Apple sees this as existential. Its design advantage, historically, has been hard to copy. If OpenAI and other AI companies can hire the talent and steal the specs, that advantage crumbles.

What Comes Next

This is a headline lawsuit. Discovery will be expensive. Both sides have resources to litigate for years. Settlements are common in trade secret cases, but neither party has signaled willingness to settle yet.

The war for AI hardware talent has moved from quiet hiring to open court.