Apple Sues OpenAI for Stealing AI Hardware Trade Secrets; 400 Former Employees Involved

On July 10, 2026, Apple filed a lawsuit in the U.S. District Court for the Northern District of California against OpenAI, hardware head Tang Tan, and former engineer Chang Liu, accusing them of orchestrating a systematic theft of Apple's trade secrets concerning unreleased AI hardware products. More than 400 former Apple employees are now employed at OpenAI.

The lawsuit documents reveal that Chang Liu downloaded dozens of confidential files before leaving his position, while Tang Tan exploited his knowledge of Apple's departure procedures to guide new OpenAI hires in bypassing security checks. OpenAI is accused of requiring Apple employees during recruitment interviews to provide details on unreleased devices, components, manufacturing processes, and supplier relationships, with IO Products named as a co-defendant.

Mechanism Breakdown

At the core of the incident lies the business logic of talent mobility and information transfer. After leaving Apple, Tang Tan retained internal "Need to Know" documents describing the security screening process for departing employees, and shared them with new recruits alongside OpenAI colleagues. OpenAI used this method to have former Apple employees send confidential materials via their work email before leaving, while also leveraging Apple supplier information to contact manufacturers. One company was misled into using a specific metal surface treatment process.

Apple previously attempted an out-of-court resolution, demanding that OpenAI stop using and destroy the proprietary materials, but received no response, leading to the lawsuit. OpenAI's hardware business relies on this information in its early stages, forming a fragile foundation.

Industry Impact

For Apple, this case protects its AI hardware R&D achievements, preventing competitors from using former employees' knowledge to accelerate product development, and may force OpenAI to redesign its devices, increasing its time and costs.

For OpenAI and IO Products, the lawsuit directly challenges the foundation of their AI hardware plans. With over 400 former Apple employees already onboard, the talent acquisition model faces legal scrutiny, potentially affecting future hiring and IPO preparations.

For developers and enterprise users, the relationship between Apple and OpenAI has taken a turn. Apple's next-generation Siri plans to use Google Gemini instead of ChatGPT, increasing uncertainty in hardware ecosystem integration. Upstream and downstream suppliers must reassess cooperation risks with both parties.

Strategic Assessment

The lawsuit will subject OpenAI to discovery and settlement pressure. Apple will continue to monitor whether OpenAI's hardware prototypes incorporate the allegedly stolen technologies. Whether the court approves Apple's motion for a redesign, and whether OpenAI publicly responds to the specific allegations, will determine the next steps for both sides.