Apple Sues OpenAI Over Trade Secrets, Citing 400 Ex-Employees as IPO Nears
Updated
Updated · TechCrunch · Jul 17
Apple Sues OpenAI Over Trade Secrets, Citing 400 Ex-Employees as IPO Nears
3 articles · Updated · TechCrunch · Jul 17
Summary
Apple’s lawsuit alleges a broad misconduct pattern at OpenAI that reaches up to its chief hardware officer, escalating a trade-secrets fight disclosed earlier Friday.
More than 400 former Apple employees now work at OpenAI, according to the complaint, giving Apple a central factual basis for claims tied to hardware-related know-how.
About 40 former Apple employees at OpenAI were already ordered to preserve documents, as Apple seeks to block any use of its information and press claims of misappropriation and contract breaches.
The case lands at a sensitive moment for OpenAI, which is reportedly considering an IPO later this year, and could complicate its hardware ambitions and investor scrutiny over data handling.
Apple is suing OpenAI for theft while partnering on AI. Can this contradictory relationship possibly survive?
With 40 ex-employees targeted, is the line between experience and corporate secrets about to be redrawn?
Apple Sues OpenAI: The High-Stakes Legal Battle Over Trade Secrets and the Future of AI Devices
Overview
In July 2026, Apple escalated its legal battle with OpenAI by filing a lawsuit against the company and two former senior employees, Chang Liu and Tang Yew Tan, accusing them of orchestrating a scheme to steal Apple’s trade secrets for OpenAI’s hardware ambitions. Shortly after, Apple sent communication preservation letters to dozens of OpenAI employees, aiming to secure evidence and prevent data destruction. Apple alleges breach of contract by the ex-employees and seeks an injunction to stop OpenAI from using any Apple information in its AI hardware development, as well as monetary damages. This aggressive legal strategy highlights Apple’s determination to protect its intellectual property.