Apple filed a civil lawsuit on July 10, 2026 [1], alleging that OpenAI and two former Apple engineers misappropriated trade secrets regarding AI hardware [2].
The legal action marks a significant escalation in the competition for artificial intelligence dominance, as Apple seeks to protect the proprietary technology behind its hardware integration.
Filed in the U.S. District Court for the Northern District of California [2], the complaint alleges that the former engineers stole confidential information and coached a colleague to do the same before joining OpenAI and its hardware subsidiary, io Products [2]. Apple alleges the theft was intended to provide OpenAI with a shortcut into Apple’s AI-hardware business [3].
A key component of the lawsuit involves a security failure. According to the complaint, a bug allowed one former employee to retain access to Apple servers for several weeks [4] after he was fired [4].
"We take the protection of our intellectual property very seriously and will vigorously defend our trade secrets," an Apple spokesperson said [5].
OpenAI has denied the allegations. "OpenAI has not engaged in any wrongdoing and will defend itself against these baseless allegations," OpenAI’s legal team said [6].
The lawsuit focuses on the misappropriation of intellectual property that Apple claims is critical to its competitive edge in the AI sector. The company is seeking to prevent the further use of these secrets, and to hold the former employees and the AI firm accountable for the alleged theft [3].
“"We take the protection of our intellectual property very seriously and will vigorously defend our trade secrets,"”
This lawsuit highlights the intensifying 'war for talent' and intellectual property in the AI sector. By targeting both the individuals and OpenAI, Apple is signaling that it will use aggressive legal measures to prevent its hardware blueprints from accelerating the development of competitors' products, particularly as OpenAI expands into physical hardware via io Products.
