Apple Sues OpenAI Over $6.4 Billion Hardware Push as Trade Secret Rift Engulfs Ex-Employees
Updated
Updated · CNBC · Jul 10
Apple Sues OpenAI Over $6.4 Billion Hardware Push as Trade Secret Rift Engulfs Ex-Employees
3 articles · Updated · CNBC · Jul 10
Summary
Apple sued OpenAI, hardware chief Tang Tan, former employee Chang Liu and IO Products in federal court, alleging they stole confidential Apple technology to build OpenAI consumer hardware.
The complaint says Tang urged Apple job candidates to bring “actual parts” to interviews, OpenAI coached departing staff to evade Apple security, and Liu took an Apple laptop.
Apple also alleges OpenAI used business partners to pursue a metal-finishing technique Apple invented while implying it had Apple's permission, and is seeking damages, injunctions and an order halting use of its secrets.
The lawsuit marks a sharp break in a relationship that produced the 2024 ChatGPT-on-iPhone partnership, after OpenAI moved into devices by buying Jony Ive's startup IO Products for $6.4 billion.
Apple's Siri overhaul due this fall already relies on Google's Gemini rather than ChatGPT, underscoring how the companies' AI alliance has cooled as they edge into hardware competition.
A judge dismissed a similar lawsuit. Can Apple prove OpenAI's hiring was theft, not just aggressive recruiting?
Is Apple's lawsuit a defense of its secrets or a strategic move to crush a future iPhone competitor?
Apple’s 2026 Lawsuit Against OpenAI: Trade Secrets, Talent Wars, and the Future of AI Hardware
Overview
On July 10, 2026, Apple filed a major lawsuit against OpenAI, io Products, and two individuals, accusing them of systematic trade secret theft and breach of contract as OpenAI pushed into the consumer hardware market. Apple claims OpenAI’s new hardware business is built on misappropriated Apple secrets, with misconduct allegedly normalized by OpenAI’s leadership. Apple also believes it cannot see the full extent of the wrongdoing and is using the legal discovery process to uncover more. This lawsuit marks a dramatic escalation in their rivalry and could have significant consequences for both companies and the tech industry.