Apple Sues OpenAI, Alleging Trade Secret Theft in AI Hardware Race

Barchart·07/11/2026 02:12:02

Apple ($AAPL) filed a lawsuit against Microsoft ($MSFT)-backed OpenAI, alleging the AI company orchestrated a campaign to obtain confidential information about unreleased Apple hardware through former employees. Apple is seeking damages, a jury trial, and court orders requiring OpenAI to stop using and destroy any misappropriated trade secrets tied to its hardware development efforts.

• Apple named OpenAI and its chief hardware officer, former Apple executive Tang Tan, as defendants in the Northern District of California.
• The lawsuit alleges former Apple employees downloaded confidential files and were encouraged to share product information, components, and engineering details during OpenAI recruiting.
• Apple claims OpenAI hired more than 400 former Apple employees as it expanded its AI hardware efforts.
• The companies previously partnered to integrate ChatGPT into Apple Intelligence, though Apple's latest Siri AI uses Google's Gemini models.

Relevant Companies

• Apple ($AAPL) – The lawsuit seeks damages and injunctive relief over alleged theft of proprietary hardware technology.
• Microsoft ($MSFT) – Microsoft is OpenAI's largest strategic investor, making the litigation relevant to its AI ecosystem.
• Alphabet ($GOOGL) – Apple's latest Siri AI relies on Gemini, while OpenAI and Apple dispute their hardware and AI partnership.

Editor’s Note: This is a developing story. This article may be updated as more details become available.

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