Jul 16, 2026
Simmering tensions between two tech behemoths are exploding in the open.
On Friday, Apple sued OpenAI and alleged that the AI lab was stealing intellectual property about products that were still in their development phase. It elaborated on an effort that included job candidates from Apple being asked to share details about confidential projects during the hiring process.
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The lawsuit was filed in the U.S. District Court for the Northern District of California. The iPhone maker said in the filing that it had been left with “no choice” after Apple wrote to OpenAI in February to raise its concerns about intellectual property reaching its business, and whether any precautions were being taken. OpenAI never responded, according to Apple.
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“This is the tip of the iceberg,” Apple said in the 41-page filing. “At every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information.”
The bulk of Apple’s allegations rest on individuals that previously worked at the company who interviewed or joined OpenAI. It listed Tang Tan, a former Apple executive who is now OpenAI’s chief hardware officer, as part of an effort to extract sensitive information from Apple that could benefit OpenAI.
‘Show and tell’
The legal filing alleged Tan had “directed job candidates still working for Apple to bring ‘actual parts’ from Apple to their interviews for ‘show and tell’ sessions in which he and his team at OpenAI can elicit still more Apple confidential information.”
It also said those directions had “surprised” one of the prospective job candidates. Apple also accused another one of its former employees, Chang Liu, of using a co-worker’s Apple-issued laptop to download confidential files about unreleased products and technical presentations.
OpenAI built its fledgling hardware business on “the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets,” Apple wrote in the lawsuit.
OpenAI didn’t immediately respond to Moneywise’s request for comment. But a spokesperson for the AI lab has said in a statement to other media outlets: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
Tan and Liu couldn’t immediately be reached for comment.
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Rising tensions between tech giants
Apple and OpenAI once enjoyed a close partnership. The iPhone maker struck a deal with the AI startup in 2024 to integrate ChatGPT into its products, including Siri, the digital assistant in its smartphone products.
But the joint collaboration steadily unraveled. Starting in January, Apple partnered with Google to incorporate its technology into its iPhone and other products.
Some analysts also view OpenAI as a future hardware rival to Apple, which has long held a commanding position in the smartphone market. OpenAI is reportedly set to release its first physical hardware in the form of a screen-free mobile smart speaker powered by AI.
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Joseph Zeballos-Roig is a policy and politics journalist based in Washington D.C with a focus on economics. He is experienced in connecting the significance of events in the capital to the lives of everyday Americans whether its taxes, tariffs, interest rates or federal programs.
