Apple sues OpenAI for alleged theft of trade secrets regarding ChatGPT hardware development

Apple has filed a lawsuit against OpenAI and two former employees, accusing them of stealing trade secrets linked to the development of hardware for ChatGPT. The complaint was lodged on July 10, 2026, in a California federal court, marking a significant breakdown in the relationship between the tech giant and the AI company.

Allegations of Trade Secret Theft

The lawsuit claims that OpenAI's hardware chief, Tang Yew Tan, and former senior electrical engineer, Chang Liu, engaged in a coordinated effort to misappropriate Apple’s confidential information. This includes proprietary product designs and manufacturing processes. Apple alleges that Liu retained a company-issued laptop and utilized an authentication bug to access sensitive internal files.

According to the complaint, Liu downloaded “dozens of Apple’s confidential hardware-related files” before leaving the company. Apple also asserts that Tan used Apple’s trade secrets to benefit OpenAI, including sharing information about Apple’s suppliers via email.

OpenAI's Hardware Ambitions

OpenAI has not disclosed the specific type of hardware it aims to develop. However, it seeks to create a new way to interact with AI, moving beyond conventional products and interfaces. This initiative is part of a broader trend to integrate AI into physical devices, akin to the introduction of screen-free talking speakers by Amazon and Google a decade ago.

Apple's lawsuit highlights concerns that OpenAI's hardware project is partly based on knowledge obtained from its trade secrets. The tech giant claims that OpenAI employees attempted to solicit confidential information from Apple’s suppliers, further exacerbating the strained relationship between the two companies.

The Strained Relationship Between Apple and OpenAI

The relationship between Apple and OpenAI has been tense, particularly as both companies compete for talent and proprietary technology in the AI sector. In its complaint, Apple notes that it reached out to OpenAI in February with concerns over the potential leakage of confidential information but received no response.

Previously, in 2024, Apple had integrated its own AI technology across its apps, including Siri, and allowed users to access ChatGPT directly from their devices. Despite the ongoing legal battles, the partnership has enabled users to interact with AI in new ways, demonstrating the complexities of collaboration in the rapidly evolving tech landscape.