Apple filed a lawsuit on July 10, 2026, in the U.S. District Court for the Northern District of California against OpenAI, two former employees, and io Products, accusing them of systematically stealing trade secrets related to product design, manufacturing processes, and supply chain to accelerate OpenAI's consumer hardware business. This lawsuit could set a significant precedent for how AI companies compete with established tech giants in hardware, potentially impacting OpenAI's hardware ambitions and the broader industry's approach to intellectual property protection. Apple alleges former employee Chang Liu downloaded dozens of hardware files after leaving the company, and hardware head Tang Yew Tan sent supplier information to his personal email and encouraged job candidates to bring Apple parts to interviews. Apple also claims over 400 former employees now work at OpenAI.
Background
OpenAI has been expanding into consumer hardware, reportedly developing smart speakers and other AI-powered devices. Apple claims OpenAI's hardware business is built on misappropriated trade secrets, including unreleased product designs and manufacturing processes. Io Products, co-founded by former Apple design chief Jony Ive, is also named as a defendant in the lawsuit.