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Apple Takes OpenAI to Court Over Alleged Trade Secret Theft in Hardware Push
TechnologyThe Vergeยท July 10, 2026(10d ago)

Apple Takes OpenAI to Court Over Alleged Trade Secret Theft in Hardware Push

Cupertino has filed a lawsuit against OpenAI, claiming former Apple engineers funneled confidential technology to the AI firm. The complaint also targets IO Products, the hardware venture founded by Jony Ive and acquired by OpenAI in 2025.

In a bold legal move, Apple has launched litigation against OpenAI, accusing the artificial intelligence powerhouse of systematically pilfering proprietary technology from its former employees. The iPhone maker alleges that a deliberate scheme unfolded in which engineers who once worked on Apple's hardware initiatives carried confidential knowledge to their new roles at the AI company.

According to the complaint filed by Apple, investigators uncovered what the company describes as an ongoing pattern of misappropriation involving personnel who transitioned between the two organizations. The technology giant contends that these individuals leveraged internal Apple innovations to fast-track OpenAI's ambitions in the consumer hardware space, an area where the ChatGPT creator has been working to expand its footprint.

Beyond OpenAI itself, the legal action also targets IO Products, the hardware startup established by legendary Apple designer Jony Ive, which OpenAI acquired earlier this year. Two individuals are specifically named in the suit: Tang Tan, who now serves as OpenAI's head of hardware, and Chang Liu, another engineer who made the jump from Apple's ranks to OpenAI back in January.

An Apple representative offered a statement to 9to5Mac emphasizing the company's commitment to innovation, noting: "At Apple, our teams are constantly developing breakthrough technologies to create the best products and experiences for our consumers." The statement underscores the company's stance that protecting its research and development investments remains a top priority, particularly as competitors increasingly turn to aggressive hiring of former staff.

The case highlights the increasingly competitive battle for talent and intellectual property in the rapidly expanding AI hardware sector. With OpenAI positioning itself as a serious contender in consumer devices through its Ive-led venture, the lawsuit signals that Apple intends to aggressively defend its technological edge. Further details are available in coverage from The Verge.