Apple Inc. has filed a lawsuit against OpenAI and several former Apple employees, alleging that OpenAI used improper hiring practices and misappropriated Apple's confidential technical and supply-chain information to accelerate the development of its AI hardware products.
The complaint seeks injunctive relief and damages, and Apple filed it on 10 July 2026 in the U.S. District Court for the Northern District of California. Apple alleges that OpenAI's hardware efforts were built on the unlawful use of Apple trade secrets and argues that while employee mobility is normal in the market, OpenAI is not entitled to exploit confidential information retained by departing staff.
Apple is asking the court to order OpenAI to immediately cease the alleged infringing conduct, destroy any Apple confidential materials, and redesign any upcoming hardware products to ensure they do not incorporate Apple technology. OpenAI denied the allegations in a statement, saying it has no interest in other companies' trade secrets, the report said.
Apple alleges that more than 400 Apple employees have moved to OpenAI. The lawsuit names two former Apple staff members as key figures: Tang Yew Tan, described as a former Apple vice president of product design who later joined OpenAI as chief hardware officer, and Chang Liu, described as a senior systems electrical engineer who joined OpenAI in January 2026.
Apple alleged Tang Yew Tan asked Apple employees interviewing with OpenAI to bring physical Apple hardware components—such as batteries and circuit boards—to interviews to explain technical details and that he retained supplier and industry information via a private email account before leaving Apple.
Apple also alleged Chang Liu failed to return an Apple-issued computer and exploited an authentication vulnerability to access Apple's internal network, downloading multiple confidential hardware documents, including engineering presentations and technical parameters, the report said.
Apple and OpenAI had announced a high-profile partnership in 2024, with ChatGPT technology positioned to support Siri and Apple Intelligence. It added that tensions escalated as OpenAI increased activity in AI hardware and that Apple said it attempted to resolve the dispute privately before pursuing litigation.
Bloomberg commentary described the case as highlighting intensifying competition in AI-focused consumer hardware, an area where Apple's industrial design and supply-chain capabilities are viewed as core strengths.
OpenAI previously disclosed plans to release its first in-house hardware device by the end of this year, and that the lawsuit could add uncertainty during a period when OpenAI is said to be preparing for a potential listing.
(Source: Ta Kung Pao)
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