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theverge ai · July 14, 2026

Apple sues OpenAI over hardware trade secrets — what this means for its device plans

apple sued openai, accusing three former employees of stealing hardware secrets to help build openai's new device. the lawsuit threatens openai's aggressive expansion into consumer hardware.

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apple has sued openai in federal court, accusing former apple employees tang tan, chang liu, and yu-ting peng of taking trade secrets to benefit openai's hardware division. the 41-page complaint alleges specific misconduct, including coaching employees on bypassing offboarding security and moving proprietary hardware for interviews. openai recently hired tan as chief hardware officer following its acquisition of jony ive's firm lovefrom to develop a new ai device. this lawsuit adds to openai's mounting legal troubles and threatens to delay or derail its hardware ambitions.

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