Apple files trade secrets lawsuit against OpenAI, alleging pattern of misconduct

Apple filed a trade secrets lawsuit against OpenAI, accusing the AI company of a pattern of misconduct aimed at recruiting current and former Apple employees to share confidential information. The complaint names OpenAI’s chief hardware officer, Tang Tan, and alleges that more than 400 Apple employees now work at OpenAI. OpenAI responded by stating it is 'not aware of any evidence that this complaint has merit.'

The lawsuit was filed on July 19, 2026, and includes allegations that OpenAI’s actions could be intended to benefit a competing hardware product. TechCrunch’s Equity podcast discussion highlighted concerns that the lawsuit could lead to delays in OpenAI’s hardware plans, even if no injunctive relief or restraining order is granted.

OpenAI is reportedly pursuing a confidential IPO filing, with speculation it could occur as early as the end of 2026 or early 2027. Analysts suggest the lawsuit raises questions about how OpenAI’s hardware ambitions factor into its IPO valuation, given that the company’s current business is overwhelmingly software-focused.

The litigation also raises broader questions about talent movement between the two companies and the potential reputational impact on OpenAI, which recently concluded a trial with Elon Musk that, while resulting in a victory, included embarrassing disclosures.

TechCrunch’s reporting frames the lawsuit as a significant escalation in the competitive dynamics between Apple and OpenAI, particularly as OpenAI pursues hardware initiatives in partnership with Jony Ive’s design team.