Apple has filed a federal lawsuit against OpenAI and two of its former employees, alleging that confidential hardware files were stolen. The case, filed in the US District Court for the Northern District of California on July 10, 2026.

The company is accusing Chang Liu, a former senior systems electrical engineer, of downloading dozens of confidential Apple hardware files after he joined OpenAI in January 2026.

The players and the playbook

Liu isn’t the only former Apple employee named in the complaint. The lawsuit also targets Tang Tan, who now serves as OpenAI’s Chief Hardware Officer. Tan spent 24 years at Apple, rising to the level of Vice President before making the jump.

Apple claims that over 400 former employees have transitioned to OpenAI. The lawsuit paints a picture of systematic recruitment practices that, in Apple’s telling, may have facilitated the extraction of proprietary information. Apple is seeking injunctions to prevent further use of its intellectual property, the return of stolen materials, and the preservation of evidence.

OpenAI has denied any wrongdoing involving trade secrets, but hasn’t offered a more detailed rebuttal.

Why AI hardware is the real battleground

This lawsuit arrives against the backdrop of OpenAI’s aggressive expansion into physical hardware. OpenAI’s $6.5 billion acquisition of Jony Ive’s io in 2025, the design studio founded by Apple’s legendary former design chief, has intensified competition with Apple in the consumer technology sector.

What this means for investors and the broader tech landscape

The case raises a fundamental question about the AI talent economy. Trade secret law has always struggled with the line between what an employee knows and what a company owns. When over 400 employees move from one company to another, that line is about to get tested in court.