Apple sues OpenAI and two ex-employees over trade secrets

Apple has filed a federal lawsuit against OpenAI and two former high-ranking employees, alleging a systematic campaign to misappropriate trade secrets to accelerate OpenAI's push into consumer hardware. The complaint, filed on July 12, 2026, in the U.S. District Court for the Northern District of California, marks a dramatic escalation in tensions between the two technology companies.

The lawsuit accuses OpenAI of orchestrating efforts to acquire and exploit Apple's confidential information through former employees, recruiting practices, and supplier relationships. Apple claims this activity is aimed at benefiting OpenAI's foray into consumer hardware, a move analysts believe could involve developing a phone or other device. Such a product could potentially direct consumer attention away from Apple's core iPhone business.

Named in the suit are two former Apple employees: Chang Liu, a former senior system electrical engineer, and Tang Yew Tan, a former vice president of product design for the iPhone and Apple Watch. Apple alleges that Liu failed to return a company-issued laptop and later used an authentication bug to access Apple's internal network, downloading dozens of...