OpenAI Reportedly Weighs Breach-of-Contract Lawsuit Against Apple as AI Rift Deepens

Apple sued OpenAI, its io Products unit and former employees Tang Tan and Chang Liu in the U.S. District Court for the Northern District of California on July 10, 2026, alleging a coordinated effort to misappropriate confidential product designs, manufacturing processes and supply-chain strategies for consumer AI hardware. The dispute marks a sharp turn in a relationship that began with ChatGPT integration on Apple devices. OpenAI acquired Jony Ive’s io in 2025 in a deal valued at nearly $6.5 billion, underscoring the stakes as it moves into hardware.

Apple sought a preliminary injunction on Aug. 3 and identified at least 11 additional former employees in its filing; it says more than 400 former Apple workers have joined OpenAI. OpenAI published emails and iMessages the same day, arguing that Apple’s outside counsel emailed the wrong person on Feb. 23 and falsely said he had spoken with OpenAI’s general counsel. It also blamed Chang Liu’s post-departure access on Apple’s account controls. OpenAI moved to dismiss the case on Aug. 6, saying it neither possesses nor wants Apple trade secrets.

Apple and OpenAI began as partners in 2024, when Apple agreed to integrate ChatGPT into Siri. The relationship shifted as OpenAI moved into consumer devices, announcing in May 2025 a roughly $6.5 billion acquisition of io Products, the hardware venture co-founded by former Apple design chief Jony Ive. The dispute now centers on control of the post-smartphone interface: Apple’s product-design and supply-chain expertise against OpenAI’s effort to build a dedicated physical gateway for artificial intelligence.

On July 10, 2026, Apple sued OpenAI, io Products, hardware chief Tang Yew Tan and engineer Chang Liu in the U.S. District Court for the Northern District of California. Apple alleges OpenAI has hired more than 400 former Apple employees and solicited parts and confidential information during interviews. The complaint says Liu downloaded dozens of files, including a compilation exceeding 1,000 pages. Apple later sent preservation notices to about 40 former employees at OpenAI. OpenAI said it has no interest in rivals’ trade secrets and is unaware of evidence supporting the complaint.