Apple Sues OpenAI Over Alleged Hardware Trade Secret Theft

AI | The Verge· July 10, 2026 View original

▶ The 2-minute explainer

Summary

Apple has filed a lawsuit against OpenAI, alleging that former Apple employees, now at OpenAI, stole trade secrets related to Apple's hardware plans to benefit OpenAI's hardware initiatives.

Apple has initiated legal action against OpenAI, accusing the AI startup of engaging in a pattern of trade secret theft. The lawsuit claims that several OpenAI employees, who previously worked at Apple, misappropriated confidential information pertaining to Apple's hardware development. The complaint specifically names IO Products, a hardware startup acquired by OpenAI in 2025 and founded by Jony Ive, along with two key individuals: Tang Tan, OpenAI's chief hardware officer, and Chang Liu, who transitioned from Apple to OpenAI in January. Apple asserts that these individuals used stolen secrets to advance OpenAI's hardware ambitions.

Why it matters

This lawsuit highlights the intense competition and intellectual property risks in the rapidly evolving AI and hardware integration space, potentially impacting talent mobility and corporate partnerships.

How to implement this in your domain

  1. 1Review and strengthen internal intellectual property protection policies and agreements.
  2. 2Conduct thorough due diligence on new hires, especially those from competitors, regarding their prior employment agreements.
  3. 3Implement robust data access controls and monitoring for sensitive projects.
  4. 4Educate employees on trade secret protection and non-disclosure obligations.
  5. 5Consult legal counsel to assess potential risks related to hiring from competitors or engaging in M&A activities involving IP-sensitive companies.

Who benefits

LegalTechAI DevelopmentHardware Manufacturing

Key takeaways

  • Apple alleges a pattern of trade secret theft by former employees now at OpenAI.
  • The lawsuit targets OpenAI, IO Products, and specific individuals.
  • The case underscores the high stakes in AI hardware development.
  • Companies must reinforce IP protection and employee offboarding/onboarding protocols.

Original post by AI | The Verge

"Apple has sued OpenAI, alleging that engineers stole Apple secrets to advance the AI startup's hardware plans. In its complaint, Apple says it uncovered "a pattern of theft of Apple's trade secrets by OpenAI employees who were formerly at Apple." In addition to OpenAI, the lawsui…"

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