Apple sues OpenAI over alleged theft of iPhone and Watch designs

Apple sued OpenAI on July 10, 2026, alleging that former Apple engineers stole iPhone and Apple Watch hardware designs and manufacturing data to aid OpenAI’s nascent hardware division, seeking injunctive relief and damages [1]. The case threatens OpenAI’s upcoming AI‑powered devices and could reshape the fragile partnership that began with ChatGPT integration on iOS.

Allegations and alleged methods

Apple’s complaint details a “pattern of theft” by OpenAI employees who left Apple, focusing on two senior hires. Tang Tan, who led iPhone and Apple Watch design at Apple before departing in February 2024, allegedly instructed interviewees to bring unreleased Apple parts and CAD files to “show‑and‑tell” sessions, extracting component selections and vendor relationships [1]. Chang Liu, after eight years at Apple, is accused of exploiting a security bug to download a “compilation of technical files” exceeding a thousand pages, including detailed circuit‑board manufacturing documents, and of coaching other candidates on which confidential material to study before their OpenAI interviews [1].

Apple says it first raised the issue with OpenAI in February, but received no response, describing the conduct as “the tip of the iceberg” and noting that more than 400 former Apple employees now work at OpenAI [1]. The lawsuit also alleges that OpenAI used a trusted Apple supplier to apply Apple’s proprietary metal‑finishing technique without permission, and that it approached another long‑time Apple battery partner with insider terminology to extract component details [1].

Market and partnership implications

The filing arrives as OpenAI prepares its first consumer hardware product, a move that has already strained its relationship with Apple. Apple’s integration of ChatGPT into Siri, launched in 2024, is being reconsidered; the company is now shifting toward Google’s Gemini models for its upcoming Siri overhaul [2]. If Apple secures an injunction, OpenAI could be barred from using any of the allegedly stolen designs, potentially delaying or reshaping its hardware roadmap, which includes rumored AI‑driven smartphones slated for 2028 [1].

OpenAI’s hardware ambitions were bolstered by its $6.5 billion acquisition of io Products, Jony Ive’s former design studio, in 2025, bringing over 50 engineers into its fold [1]. The lawsuit therefore not only targets individual former employees but also challenges the broader strategy of leveraging Apple‑trained talent to accelerate OpenAI’s device development.

What to watch

• Court filings: Follow the U.S. District Court for the Northern District of California for any motions on injunctive relief or damages.
• OpenAI hardware timeline: Monitor announcements on the rumored AI smartphone and smart‑speaker projects for potential delays.
• Apple’s AI roadmap: Watch Apple’s next iOS release for the rollout of Gemini‑powered Siri features, signaling a further pivot from OpenAI.

The lawsuit underscores the high stakes of talent poaching in the AI hardware race and raises the question of whether OpenAI can continue building its devices without relying on proprietary Apple knowledge.