Apple has taken OpenAI to a federal court in California over a particularly serious allegation: using the hiring of former employees to obtain trade secrets related to hardware design, manufacturing, and supply chain. The lawsuit also targets io Products and former Apple employees Tang Yew Tan and Chang Liu, who were involved in the project with which OpenAI aims to develop a new generation of AI devices.
Elon Musk has used this case to reignite his public dispute with Sam Altman, but it’s important to correct a misconception already circulating in some headlines: Musk has not legally joined Apple’s lawsuit. As of 07/13/2026, he is not listed as a plaintiff or involved in the proceedings. His involvement has been limited to comments on X and new personal attacks against OpenAI’s CEO.
Key points of Apple’s lawsuit against OpenAI
- Apple filed the lawsuit on 07/10/2026 in the Northern District of California.
- The defendants include OpenAI, io Products, and former Apple employees Tang Yew Tan and Chang Liu.
- Apple accuses OpenAI of obtaining confidential information through hiring practices and interviews.
- Liu allegedly kept a corporate laptop and exploited an authentication flaw to access internal files.
- Tan reportedly requested supplier information and encouraged candidates to bring Apple components to interviews.
- OpenAI denies any interest in other companies’ trade secrets.
- Apple requests financial damages, a jury trial, and injunctions to prevent the use of allegedly stolen information.
- Elon Musk has publicly supported the criticism but is not part of this lawsuit.
- The conflict could impact OpenAI’s plans to launch its own hardware, although no court decision has been made yet.
- The integration of ChatGPT into Apple systems has not been immediately withdrawn as a result of the lawsuit.
The lawsuit argues that the misconduct is not merely the isolated act of one or two employees. Apple describes an organized pattern in which OpenAI allegedly used its hiring and selection processes to extract confidential knowledge from employees still working in Cupertino.
OpenAI rejects this characterization. A spokesperson stated that the company is reviewing the lawsuit and assured that it is not interested in other companies’ trade secrets. For now, only Apple’s initial version is known; the accusations have not yet been proven in court.
A laptop, an authentication flaw, and downloaded files
One of the central episodes involves Chang Liu, a former Apple electrical engineer who joined OpenAI in early 2026.
According to the lawsuit, Liu did not return an Apple-owned computer after leaving the company. Apple also claims it discovered an authentication flaw that allowed the device to retain access to certain shared folders even after the employee had moved to OpenAI.
Court documents allege that Liu downloaded several files related to hardware projects. Part of the case relies on messages indicating the engineer was surprised to discover he still had access to the internal system.
The existence of a vulnerability does not by itself prove that OpenAI ordered its exploitation. Apple will need to establish who accessed the files, what information was downloaded, whether it was handed to others, and how it ultimately was used within OpenAI’s hardware project.
The second focus is on Tang Yew Tan, known as Tang Tan, who spent 24 years at Apple and served as vice president of product design. He contributed to devices like the iPhone, Apple Watch, and AirPods before leaving Apple to become one of OpenAI’s hardware project leaders.
Apple claims Tan provided information about suppliers and used interviews to gather details about products, components, and internal processes.
One of the most notable allegations is that candidates from Apple were asked to bring “real parts” for demonstration during interviews. Showing previous work isn’t unusual in the tech sector, but the line is crossed when those parts are prototypes, unreleased samples, or materials under confidentiality agreements.
| Defendant | Relationship with Apple and OpenAI | Main Allegation by Apple |
|---|---|---|
| OpenAI | Partner with Apple in ChatGPT and potential hardware competitor | Promoting and taking advantage of confidential information |
| io Products | Hardware company integrated into OpenAI | Using Apple secrets to accelerate new device development |
| Tang Yew Tan | Former Apple VP of Product Design and hardware lead at OpenAI | Requesting info, suppliers, and components from employees and candidates |
| Chang Liu | Former Apple electrical engineer now at OpenAI | Keeping a laptop, accessing servers, and downloading confidential files |
Apple states it raised concerns with OpenAI in February and received inadequate responses. The lawsuit requests a jury to determine liability, seeks monetary compensation, and asks for orders to prevent OpenAI from using or retaining any improperly obtained material.
The race to create the device after the smartphone
This dispute is about more than a labor conflict between two Silicon Valley companies. OpenAI is trying to turn ChatGPT into a product that doesn’t depend on opening an app on an Apple device or browsing through Google.
Its project with io Products brings together former Apple industrial design executives, including Jony Ive. OpenAI has described its goal vaguely: to create a new way of engaging with AI that surpasses traditional interfaces.
For Apple, this project poses a double threat. It could become a direct competitor to the iPhone and, at the same time, attract engineers familiar with how Apple designs, manufactures, and mass-produces millions of devices.
OpenAI’s knowledge requirement isn’t limited to the exterior of a product. Manufacturing consumer hardware demands mastery over batteries, cameras, microphones, antennas, thermal management, acoustics, materials, assembly, costs, and suppliers capable of delivering millions of units with few defects.
Building that expertise from scratch takes years. Hiring former Apple professionals is legal and common. Taking files, prototypes, or confidential supplier lists would not be.
The lawsuit aims to clarify exactly this distinction.
What Apple will need to prove
In the United States, information is only protected as a trade secret if its owner has taken reasonable measures to keep it confidential and if it has economic value precisely because it is not generally known or easily obtainable through legitimate means.
Federal law considers misappropriation to include acquisition through theft, deception, electronic espionage, or breach of confidentiality duty. It does not include independent development, legitimate reverse engineering, or general professional experience gained during a career.
Apple must precisely identify which secrets were stolen. Merely claiming that Tan and Liu know their products’ design deeply isn’t enough. It must connect specific documents, parts, methods, suppliers, or processes to later work by OpenAI.
Additionally, Apple must demonstrate that OpenAI knew or should have known that the information came from illegitimate sources and that it used or threatened to use it.
This is especially important in California, where non-compete clauses in employment contracts are generally void. State law protects employees’ ability to switch companies and use their professional skills in other projects.
Federal trade secret law also doesn’t allow preventing someone from accepting employment solely based on the information they retain in their memory. An order must be based on actual misappropriation or threat thereof, not simply on the fact that an employee knew sensitive details of their former employer.
Therefore, the central legal question will be: did OpenAI hire experienced professionals or obtain confidential material?
If Apple proves the latter, the court could order the cessation of use, require safeguards for the secrets, and award damages for losses or unjust enrichment. In cases of deliberate, malicious misappropriation, federal law permits increasing damages and awarding legal costs.
Musk joins the critique, not the lawsuit
Musk’s involvement has added noise to an already complex case.
The founder of xAI called OpenAI CEO “Scam Altman” again and used Apple’s lawsuit to attack its credibility. Altman responded by linking the criticisms to their rivalry and questioning some of Musk’s announced projects.
Musk has a clear interest in any issue affecting OpenAI. He was a co-founder, left the organization in 2018, and now competes with it through xAI and Grok. He also has separate disputes related to corporate transformation and governance of OpenAI.
However, none of these circumstances make him a party to Apple’s lawsuit. Legally, they are separate conflicts with different plaintiffs, facts, and claims.
To say Musk “has joined the lawsuit” is inaccurate; what’s correct is that he has publicly aligned himself with the offensive against OpenAI.
From partners in iPhone to rivals in hardware
In 2024, Apple and OpenAI announced the integration of ChatGPT into Siri and the writing tools of iOS, iPadOS, and macOS. Users could authorize sending queries to ChatGPT when Apple’s models did not suffice.
That partnership was mutually beneficial: Apple managed the device, and OpenAI provided one of the most well-known models on the market.
The new hardware project changes this balance. OpenAI no longer wants to be just a service inside Apple’s products. It aims to control its own interface, design, and direct relationship with users.
The lawsuit doesn’t automatically cancel the ChatGPT integration into Apple systems. Both companies could continue their commercial agreements during litigation, though mutual trust may have eroded.
For OpenAI, the immediate risk may not be compensation but the legal discovery process, which could require sharing emails, messages, hiring documents, access logs, and development details of its device.
For Apple, the lawsuit also poses risks. It must describe its trade secrets in sufficient detail to defend the case without publicly revealing what it seeks to protect. OpenAI could challenge internal controls and question how an ex-employee kept a laptop and server access after leaving.
The process is just beginning and could last for years. For now, there are detailed accusations, OpenAI’s denial, and a public intervention by Elon Musk that adds spectacle but doesn’t change each party’s position in court.
Frequently Asked Questions
Is Elon Musk part of Apple’s lawsuit against OpenAI?
No. Musk has publicly criticized OpenAI and Sam Altman but does not appear as a plaintiff or involved party in this case.
Has a court confirmed that OpenAI stole secrets from Apple?
No. These are allegations included in an initial complaint. OpenAI denies them, and no evidence has been presented nor has a verdict been issued.
What is Apple alleging?
Apple requests monetary damages, a jury trial, and orders to prevent OpenAI from retaining or using information allegedly obtained unlawfully.
Will ChatGPT disappear from the iPhone because of this lawsuit?
There are no indications of an immediate impact. The integration remains a separate commercial relationship, although future collaboration could be affected by the dispute.
