Apple filed a lawsuit in a federal court in California on July 11, 2026, accusing OpenAI of using the company's trade secrets while developing its ChatGPT hardware. Apple alleges that OpenAI encouraged former Apple employees to share confidential information and gave instructions on how to avoid surveillance during their transition. The lawsuit states, "This case concerns former Apple employees who stole Apple trade secrets for the benefit of OpenAI." Among the defendants are two former Apple employees now at OpenAI: Tang Tan, who helped design the iPhone, Apple Watch and iPod and is currently OpenAI's head of hardware, and Chang Liu, a former Apple electrical engineer who had access to sensitive product development information before joining OpenAI this year. Apple claims an internal investigation uncovered a “pattern of theft,” alleging Liu downloaded confidential files onto an Apple device and kept them after leaving, and that Tan suggested candidates still at Apple bring "real parts" of Apple products to job interviews at OpenAI. OpenAI spokesman Drew Pusateri said the company “has no interest in the trade secrets of other companies.” The dispute follows a 2024 partnership between Apple and OpenAI to integrate ChatGPT into the iPhone, but reports indicate the relationship is turning into a rivalry after OpenAI developed a secret hardware project with former Apple designer Jony Ive.