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Apple sues OpenAI over alleged trade secret theft in hardware
Apple filed a lawsuit on July 10, 2026 in the U.S. District Court for the Northern District of California accusing OpenAI of stealing its hardware trade secrets. The complaint alleges that former Apple engineers – notably systems engineer Chang Liu and former vice‑president‑turned‑OpenAI hardware chief Tang Tan – used a previously unknown authentication bug and other methods to access and download dozens of confidential files on unreleased iPhone, Apple Watch and other products after leaving Apple. Apple says Liu kept a company laptop and exploited the bug for weeks, sending a message “LOL, I found out I can access the [network storage], so funny,” while recruiting colleague Yu‑Ting Peng to help. The suit also claims OpenAI instructed job candidates to bring actual Apple parts to interviews and coached departing employees on evading Apple’s security procedures. OpenAI, which acquired the Jony Ive‑founded hardware startup io Products for about $6.4 billion, denies the allegations. Apple seeks damages, an injunction to stop use of the alleged secrets, and destruction of any derived materials, warning that the case could delay OpenAI’s planned AI‑powered hardware product slated for release in 2027.