Apple has filed a lawsuit against OpenAI, accusing the AI startup's former Apple employees of stealing trade secrets related to hardware plans. The complaint also names Jony Ive's hardware startup IO Products. Apple alleges a pattern of theft to advance OpenAI's hardware ambitions.
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On July 10, 2026, Apple filed a federal lawsuit in the Northern District of California against OpenAI, accusing it of systematically stealing trade secrets — from poaching over 400 employees to requiring job candidates to bring Apple hardware components. The lawsuit reveals a deeper picture: OpenAI's ambitions in hardware may be built on decades of Apple's accumulated secrets.
In a 41-page complaint, Apple describes OpenAI's conduct as 'an extremely aggressive poaching and intelligence gathering strategy.' Apple not only accuses OpenAI of hiring over 400 employees but also provides detailed evidence of direct leadership involvement — Chief Hardware Officer Tang Tan is alleged to have personally asked candidates to bring Apple hardware components during interviews and instructed departing employees on circumventing Apple's security procedures to inquire about unreleased product details. Tan previously spent 24 years at Apple as VP of Product Design for iPhone and Apple Watch.
Another key figure is senior systems electrical engineer Liu Chang, who joined OpenAI in 2026 after eight years at Apple. Apple accuses Liu of failing to return a company-issued laptop and using it to download confidential documents including unreleased technical specs, engineering presentations, and proprietary project data. Apple further claims that Liu shared this confidential information with other Apple employees applying to OpenAI, coaching them on what to study before interviews.
Apple's lawsuit targets not just employee behavior but OpenAI's broader hardware business. In 2025, OpenAI acquired Jonathan Ive's hardware startup io for $6.5 billion (Ive himself is not named in the suit). Industry analyst Ming-Chi Kuo noted in April 2026 that the device OpenAI is developing could be an 'AI agent-driven smartphone that doesn't rely on apps,' directly threatening Apple's core hardware business.
Apple further alleges that OpenAI has used stolen technology directly in its own hardware development. For example, OpenAI allegedly used an Apple-proprietary metal surface finishing process without authorization and misled partners into believing it had Apple's permission. The complaint states: 'OpenAI's hardware business rests on shaky ground; its illegal reliance on stolen trade secrets has caused it to rot from the core.'
Apple is asking the court to bar OpenAI from using or disclosing its trade secrets, order the return of all confidential materials, and preserve related evidence. Apple acknowledges in the complaint that this is only 'the tip of the iceberg' — the company cannot fully know what happens inside OpenAI due to end-to-end encrypted communications and relies primarily on communication records from company devices and server logs.
OpenAI responded on X: 'We have no interest in other companies' trade secrets. We focus on building technology that empowers people everywhere.' The response did not address specific allegations. Court filings show Apple sent a letter to OpenAI in February 2026 but received no reply, prompting Apple to take legal action. The case is in the U.S. District Court for the Northern District of California; no hearing has been scheduled.
Notably, the lawsuit mentions Jonathan Ive's io company, but Ive himself is not named as a defendant. This may indicate that Apple holds OpenAI's top leadership directly responsible rather than Ive personally. Additionally, the specific source and verification method for the number of 400 poached employees are not detailed in the public complaint; this figure may be a preliminary count from Apple's internal investigation.
This lawsuit comes at a critical juncture: AI companies are expanding their competition from the software layer downstream into hardware. OpenAI, Google, and Anthropic are all exploring proprietary hardware to optimize AI experiences and reduce dependence on existing platforms. Apple's lawsuit against OpenAI is fundamentally about protecting its core hardware moat — from chip design to supply chain management, which are its most profitable defenses.
If the court grants Apple's requests, OpenAI's hardware development could be forced to delay or undergo significant adjustments, providing a window for competitors (such as AI hardware projects in collaboration with Elon Musk). Conversely, if OpenAI can prove its technology was independently developed, Apple's brand reputation as an innovator could be damaged. Ultimately, this case may redefine the boundaries of talent mobility and trade secret protection in Silicon Valley.
This analysis is based on Apple's filed court complaint summary, OpenAI's official statement, and reports from two top tech media outlets. The complaint contains Apple's unilateral allegations, which have not yet been adjudicated by the court; OpenAI's response only denies intentional theft without refuting specific details point by point. The case is still in its early stages, and subsequent discovery may introduce new variables.
The legal battle between Apple and OpenAI is essentially a direct conflict between a traditional hardware giant and an emerging AI force in the arena of hardware devices. Regardless of the outcome, it has already exposed a reality: AI companies entering hardware don't rely solely on technology — the struggle over talent and secrets has become a core weapon of competition.
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