Apple filed a lawsuit in July 2026 accusing OpenAI of stealing trade secrets related to unreleased hardware designs. The suit names former Apple senior systems electrical engineer Chang Liu and former Apple vice-president of product design Tang Tan, now OpenAI’s Chief Hardware Officer, as key defendants [1, 2, 3, 4, 5, 6].
The lawsuit alleges Liu exploited an authentication vulnerability to access Apple’s cloud storage after leaving and directed others on avoiding detection while downloading files. Apple claims at least 11 additional former Apple employees may be involved or witnesses in the case [3, 4].
Apple filed a motion on August 3 seeking a preliminary injunction to bar OpenAI and the former staff from accessing or disclosing the alleged confidential information during the proceedings [2, 4, 7].
OpenAI denies the allegations, calling the lawsuit “careless, aggressive and oddly personal.” The company states it neither has nor wants Apple’s trade secrets. OpenAI also accuses Apple lawyers of contacting the wrong people in February over trade secret concerns and claims Apple’s poor offboarding and security allowed residual access for former employees, undermining the lawsuit [1, 3, 4, 6, 7, 8, 9].
OpenAI further says Liu was asked by Apple employees after leaving to help locate files and answer questions, contrary to the theft accusations [3, 7, 8, 9]. OpenAI filed its own motion on August 5 to dismiss the lawsuit as baseless and a pretext to cover Apple’s failure to retain talent [5, 10].
The case highlights a fierce talent battle between the companies, with over 400 former Apple employees now working at OpenAI. OpenAI is developing AI-driven hardware that could rival Apple’s iPhone and other products [1, 2, 3, 5, 10].
OpenAI released private communications publicly to refute Apple’s claims and shape public view [3, 7, 9, 11]. As of early August 2026, no court ruling has been made on Apple’s request for a preliminary injunction or on OpenAI’s motion to dismiss [2, 5, 10].
On August 6, OpenAI filed additional legal documents highlighting Apple’s alleged poor security practices that weaken the trade secrets allegations [6]. The court will next consider these competing motions as the case moves forward.
