In a dramatic escalation of Silicon Valley rivalry, Apple has sued OpenAI, accusing the artificial intelligence company of orchestrating a systematic theft of its trade secrets to build its own hardware. The lawsuit, filed in a California federal court on 10 July 2026, marks a startling breakdown of a partnership that once saw Apple integrate OpenAI’s ChatGPT into its devices.
The case centres on allegations that OpenAI poached long‑serving Apple employees and coaxed them to hand over confidential product designs, manufacturing techniques, and supplier information. Apple claims that OpenAI’s nascent hardware business is “rotten to its core” because it relies on illegally obtained secrets. Two former Apple employees are named: Tang Yew Tan, a vice‑president of design for iPhone and Apple Watch who spent 24 years at Apple and is now OpenAI’s chief hardware officer; and Chang Liu, a senior electrical engineer who worked at Apple for eight years. Apple also sues io Products, a design startup founded by former Apple design chief Jony Ive, which OpenAI acquired last year for $6.4bn.
“Apple sues OpenAI over alleged theft of trade secrets, marking a dramatic breakdown of a major tech partnership.”
According to Apple’s complaint, Tan directed job candidates still working at Apple to bring “actual parts” from the company to their interviews for “show and tell” sessions. Liu is accused of taking an Apple laptop when he left and using an authentication bug to breach Apple’s internal network and download confidential information. OpenAI spokesman Drew Pusateri said the company is reviewing the filing and has “no interest in other companies’ trade secrets”. Apple said “significant evidence” supports its claims.
The lawsuit represents a spectacular reversal of fortunes. In 2024, Apple announced a major partnership with OpenAI to integrate ChatGPT into the operating systems of iPhones, iPads and Macs. But tensions began to simmer when OpenAI acquired Jony Ive’s hardware startup, signalling its ambition to enter the consumer electronics market. Apple later shifted many of its AI features to Google’s Gemini model, and its revamped voice assistant Siri was recently shown running on Gemini rather than ChatGPT. The partnership unravelled further amid the trade secrets allegations.
For UK readers, the case has several real‑world implications. The legal battle could delay or alter the release of future Apple or OpenAI hardware and software in the UK. If Apple wins, OpenAI may be forced to redesign its hardware or pay significant damages, potentially affecting the company’s ability to offer its products competitively in Britain. More broadly, the dispute highlights the intense competition for AI talent and intellectual property, which could lead to tighter non‑compete clauses and increased litigation – affecting UK tech workers and companies. Consumers might also see fewer choices if the two giants stop collaborating on features like AI‑powered Siri or ChatGPT integration on Apple devices.
Q: What are the specific allegations against OpenAI? Apple claims OpenAI hired former Apple employees who took confidential information with them. Specifically, Tang Yew Tan allegedly directed candidates to bring Apple parts to interviews, and Chang Liu is accused of taking an Apple laptop and using a security flaw to download secret data. Apple says OpenAI engaged in a “pattern of theft” to gain an unfair advantage in hardware.
Q: What is io Products and why is it involved? io Products is a design startup founded by Jony Ive, Apple’s former design chief. OpenAI acquired the company in 2025 for $6.4bn, signalling its push into hardware. Apple’s lawsuit claims io Products is part of an “enterprise” that exploited Apple’s secrets to advance OpenAI’s hardware ambitions.
Q: How did the Apple‑OpenAI partnership collapse? The two companies announced a partnership in 2024 to integrate ChatGPT into Apple devices. However, Apple began shifting its AI features to Google’s Gemini model, and OpenAI’s acquisition of Ive’s hardware startup raised competitive tensions. The trade secrets lawsuit, filed in July 2026, marked the final rupture.
What happens next? The lawsuit is at an early stage. OpenAI has said it is reviewing the complaint and denies any interest in trade secrets. The court will hear arguments over the coming months, and a trial could be months or years away. In the meantime, OpenAI has not yet released its first hardware device, and the outcome of the case could significantly shape its plans – as well as the future relationship between two of the world’s most influential technology companies.