Apple sues OpenAI and former iPhone engineer Chang Liu over alleged trade secret theft

Apple sued OpenAI and former engineer Chang Liu in federal court on July 10, 2026, alleging Liu retained an Apple laptop and downloaded confidential files on unreleased hardware after joining OpenAI's hardware division. The lawsuit also names former Apple VP Tang Yew Tan, now OpenAI's chief hardware officer, and comes as OpenAI has hired over 400 former Apple employees. The case highlights Apple's efforts to protect trade secrets amid its AI strategy and OpenAI's push into consumer hardware.

Apple sues OpenAI and former iPhone engineer Chang Liu over alleged trade secret theft An eight-year Apple veteran allegedly kept a company laptop and downloaded confidential files on unreleased hardware after jumping to OpenAI's growing hardware division Leaving your old job on good terms is generally considered wise. Leaving your old job while allegedly keeping a company laptop and downloading files about unreleased products? That’s how you end up in federal court. Apple has filed a trade-secret lawsuit against OpenAI, former iPhone engineer Chang Liu, and former Apple VP of Product Design Tang Yew Tan in the US District Court for the Northern District of California. The suit, filed on July 10, 2026, alleges that Liu retained an Apple-issued laptop after departing the company in January 2026, accessed Apple’s internal network post-departure, and downloaded sensitive information pertaining to unreleased hardware. From Cupertino to OpenAI Chang Liu spent eight years at Apple, from January 2018 to January 2026, working as a senior systems electrical engineer focused on iPhone hardware. Liu left to join OpenAI’s hardware division as a Member of Technical Staff. Apple claims he walked out with a company laptop and then continued accessing Apple’s internal network after his employment ended. The company further alleges that Liu downloaded confidential files related to unreleased hardware while already working at OpenAI. Apple’s complaint names Tang Yew Tan as a co-defendant. Tan previously served as Apple’s VP of Product Design and now holds the title of chief hardware officer at OpenAI. The lawsuit suggests that OpenAI and Tan may have coordinated efforts to help departing Apple employees evade the company’s exit protocols. OpenAI’s hardware ambitions and the Apple talent pipeline The lawsuit arrives against the backdrop of OpenAI’s aggressive push into consumer hardware. The company has recruited more than 400 former Apple employees as part of building out its hardware team. OpenAI’s hardware efforts intensified following its 2025 merger with io Products. Apple’s complaint appears to argue that OpenAI actively coached Apple employees on circumventing exit protocols. Apple announced a major overhaul of Siri in June 2026, signaling its intention to compete more aggressively in the AI space. The timing of this lawsuit, coming just weeks after that announcement, suggests Apple views the protection of its hardware pipeline as essential to its AI strategy. What this means for investors and the broader tech landscape For OpenAI, the company is in the midst of transitioning from a pure AI research lab into a consumer products company. Courts have broad authority to impose injunctions that could limit how OpenAI uses any information derived from former Apple employees. California has historically been hostile to non-competes, which is partly why Silicon Valley’s talent market is so fluid. But trade-secret law offers a different legal avenue, one that doesn’t restrict where someone works but does restrict what they take with them. For the more than 400 former Apple employees now at OpenAI, this lawsuit creates an uncomfortable reality. Even those who left completely above board may find themselves subject to discovery requests or internal investigations as Apple seeks to establish the scope of the alleged misconduct. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy https://cryptobriefing.com/editorial-policy/ .