Apple Takes OpenAI to Court Over Alleged Hardware Secret Theft
Apple has filed suit accusing OpenAI of orchestrating the theft of confidential hardware designs through former employees, naming Jony Ive's io Products among the defendants.
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Apple has launched a legal battle against OpenAI, accusing the artificial intelligence company of engineering a scheme to acquire its confidential hardware designs through staff who once worked at the iPhone maker.
In a complaint made public on July 10, 2026, Apple contends that a recurring practice of misappropriation was carried out by OpenAI personnel who had previously been employed at Apple, with the aim of advancing OpenAI's own interests. The company argues that the wrongdoing was steered from the top of OpenAI, involving a former Apple employee of many years.
The suit identifies several defendants. Among them is io Products, the hardware venture associated with designer Jony Ive that OpenAI purchased in 2025. Also listed are Tang Tan, described as OpenAI's chief hardware officer, and Chang Liu, who left Apple to join the AI firm in January.
Apple further alleges that OpenAI pressed applicants coming from Apple to reveal information about undisclosed initiatives during the hiring process. In its filings, Apple characterized OpenAI's hardware operation in blunt terms, calling it rotten to its core.
An Apple representative provided a comment to 9to5Mac defending the company's approach to guarding its work and its willingness to pursue those it believes have misused proprietary material.
The dispute underscores the mounting friction between the two firms as competition intensifies over the emerging market for AI-powered consumer devices.
Sources
- Engadget – Apple calls OpenAI's hardware business 'rotten to its core' in trade secret theft lawsuit
- TechCrunch – Apple sues OpenAI over alleged trade secret theft
- NYT Technology – Apple Sues OpenAI, Accusing It of Stealing Company Secrets
- The Verge – Apple sues OpenAI for allegedly stealing hardware secrets