Apple's OpenAI lawsuit follows months of simmering tensions and highlights OpenAI's hardware chief Tang Tan's strained relationship with former boss John Ternus

When iPhone engineer Chang Liu quit for a job at OpenAI's nascent hardware division, Apple Inc. says he left with more than just years of experience.

Bloomberg 2026-07-12 Mark Gurman

Context & Ripple Effects

The coverage traces an escalating dispute between Apple and OpenAI around OpenAI’s nascent hardware operation: first through allegations involving former Apple hardware leader Tang Tan and prospective hires, then through Apple’s lawsuit and the specific departure of iPhone engineer Chang Liu.

The reported concentration of former Apple personnel at OpenAI makes the case more than an individual-employment conflict. It puts a high-profile AI company’s effort to build hardware in direct tension with an incumbent whose product-development knowledge is central to its competitive position.

First-order effects

Apple’s lawsuit places OpenAI’s hardware recruiting and handling of former Apple employees under legal scrutiny, while forcing the companies to contest Apple’s allegations over confidential material.
Chang Liu and Tang Tan become central figures in a dispute that may affect how OpenAI manages recruiting, onboarding, and access to work related to former employers.

Second-order effects

OpenAI’s hardware effort could face added compliance and operational friction if it must more tightly separate new hires from prior-employer information; Apple may likewise reinforce controls around sensitive hardware work and employee exits.
Other companies hiring experienced staff for AI-device initiatives may reassess interview practices, confidentiality procedures, and the degree to which they recruit from tightly concentrated hardware teams.

Third-order effects

If disputes of this kind recur, competition to turn AI capabilities into dedicated consumer hardware may increasingly be shaped by trade-secret governance and talent-mobility constraints, not only product design and model capability.
The case could test the practical boundary between legitimate employee expertise and proprietary product knowledge as AI firms expand into device development; the outcome remains uncertain because these are allegations in an active dispute.

The trend: This is one data point in AI companies’ move from software and models toward proprietary hardware, intensifying competition for the specialized teams that build consumer devices.

Discussion

@sama Sam Altman on x
homeboy you're the one sellling public market investors on short-term space datacenters
@elonmusk Elon Musk on x
He takes scamming to a whole new level
@ns123abc Nik on x
I spent all night figuring out Apple v. OpenAI lawsuit and the actual story is more serious than what mainstream has figured so far. Full investigative report INCOMING
@markgurman Mark Gurman on x
Notably, Tan and incoming Apple CEO John Ternus have had a rocky relationship for years. The vast majority of the 400 people poached by OpenAI came from Ternus's division, while Tan wanted the head of hardware engineering role over him five years ago.
@sama Sam Altman on x
@iliketeslas i am not afraid of apple, but i have tremendous respect for them. s-tier company.
@gergelyorosz Gergely Orosz on x
I am sometimes really surprised by how dumb very highly paid people in tech can be. 1. Leave Apple 2. Start building hardware at OpenAI 3. Access confidential Apple files on hardware, from an unreturned Apple laptop 4. Expect... what? To get away with it? A damning lawsuit
@raywongy Ray Wong on x
Simple: you're greedy *and* stupid
@raywongy Ray Wong on x
Who actually believes Jony Ive and Evans Hankey weren't aware of what Tang Tan was illegally doing? Sure they're not named in the lawsuit between Apple and OpenAI but come on
@leakerapple @leakerapple on x
I don't get how you can spend 24 years at a company like Apple, lead development of ground-breaking technology like the iMac, iPhone and Apple Watch, and then steal trade secrets on your way out to get pre-IPO OpenAI shares, screwing the company you helped build.
@morningbrew @morningbrew on x
What a quote... “LOL, I found out I can access the [network storage], so funny” [image]
@biohazard3737 @biohazard3737 on x
Hope Apple succeeds at taking everything from him. Incredible level of betrayal. Would really trigger my sense of justice if he ended up being a billionaire based on pure thievery.
@firstadopter Tae Kim on x
History is filled with examples of slow, blumbering incumbents that can't execute or get out of their own way (see Apple Car, Vision Pro) suing up-and-coming innovative disrupters. It's a huge red flag of weakness. As @dylan522p would say, total loser mentality
@universeice @universeice on x
Apple has had three major incidents in a row lately: a CEO transition, the Tata supply chain data leak in India, and its lawsuit accusing OpenAI of stealing trade secrets. I can't help but feel these aren't just random coincidences. They all seem to point to the same underlying
@markgurman Mark Gurman on x
When OpenAI bought Tan's AI startup for $6.5 billion last year, the company had little to show beyond concepts and early prototypes. With OpenAI racing to an IPO, the pressure was on. Now they're looking at a phone but that likely won't be their first device.
@markgurman Mark Gurman on x
Also worth noting: Apple considers OpenAI's hardware a real threat, combining some of the best engineers with the best AI. Suing OpenAI for trade secret theft could seriously slow down or even completely alter OpenAI's ability to compete with Apple devices.
@markgurman Mark Gurman on x
At the heart of Apple's suit against OpenAI is former iPhone chief Tang Tan, who was famous for “flying very close to the sun,” according to a person who worked with him. “Tang is well known for moving fast, playing fast and loose and breaking things.” https://www.bloomberg.com/.…
@ronaldmannak Ronald Mannak on x
We already have enough drama for the next The Social Network. Opening scene: a young Sam Altman presenting his first startup Loopt during Apple's 2008 keynote. Who would've guessed he'd end up as the movie's villain? [image]
@patrickmoorhead Patrick Moorhead on x
The Apple- OpenAI lawsuit filing is troubling, and if true, the two employees should be fired immediately and face the justice system. But... Apple doesn't like its employees to leave and other employees following them out the door. Remember when Apple sued Nuvia founder
@leakerapple @leakerapple on x
Apple seems to be the only Mega-corp left that seems to have a soul. I hope Ternus keeps this going.
@playerinthgame @playerinthgame on x
Having been to Apple's campus for meetings, I can tell you they're out for blood. As locked down as their phones and OS. IP is their religion.
@leakerapple @leakerapple on x
Steve would burn OpenAI to the ground. Tim, make us proud and crush OpenAI before you go.
@signulll @signulll on x
the coolest potential part of this case if it is not settled is that the internal emails guy account on here will have an absolute field day when discovery happens. i absolutely love reading internal company emails.
@gerritd Gerrit De Vynck on x
The Apple lawsuit against OpenAI is the most aggressive and intense I've seen since Waymo/Uber. Apple is saying OpenAI has been trying to rip them off cold and the whole OAI hardware drive is built on Apple IP This is a way bigger deal to OpenAI than the Elon lawsuit was IMO
@tomfgoodwin Tom Goodwin on x
Craziest part is the idea OpenAI should make hardware.
@app_settings @app_settings on x
just read the details of the Apple v. OpenAI suit and wow, this is insane what stands out to me the most is that the people involved were at Apple for YEARS, Tang having worked there for nearly 25 years i could never imagine stealing from a place i helped build for so long... [im…
@anshelsag Anshel Sag on x
The whole OpenAI v Apple dispute has been slowly boiling to this point. Apple has been poaching so many of Apple's people (ignoring Ive). Not to mention the souring of the Siri partnership. This is going to be a major tech story for quite some time.
@financedircfo Alastair Thomson on x
I can only hope this bankrupts OpenAI. It's no less than they deserve.
@bluthcapital @bluthcapital on x
“A few months after that initial 2013 meeting, $AAPL hired Masimo's chief medical officer. Later it added a top engineer who was working at a Masimo spinoff, as well as dozens of other Masimo employees.” [image]
@niccruzpatane Nic Cruz Patane on x
Maybe it's time for companies to think twice about working with Jony Ive. He's responsible for nearly ruining Ferrari's reputation overnight with the Luce. Now, he's named in a lawsuit over OpenAI allegedly stealing trade secrets from Apple to make a new AI device, which he is [i…
@bubbleboi Bubble Boi on x
Lmaoooo cheating on the interview is like cherry on top here.
@batuhan @batuhan on x
we lost Jobs too early. oh the crash out would've been so delicious.
@ns123abc Nik on x
it's over [image]
@gbrl_dick Gabriel on x
the best way for apple to get back at openAI here would be to release an excellent and near-frontier model that is deeply integrated into iOS.
@sahilypatel Sahil on x
apple has the chance to do the funniest thing ever [image]
@paularambles @paularambles on x
the worst possible name for a company in a lawsuit: i owe [image]
@andrewhart Andrew Hart on x
y'know, just some “former Apple leaders” [image]
@scobleizer Robert Scoble on x
OpenAI getting sued by Apple could lead to delays in OpenAI's hardware plans, MG surmises. Reading the evidence sure looks damning. Funny one of the times I met Steve Jobs when I worked for Microsoft he said “nice to meet the folks copying us.” Either way glad I don't work
@beffjezos @beffjezos on x
Apple should acquire Thinking Machines and go to all out war with OpenAI and put that war chest to good use
@forgebitz Klaas on x
imagine steve jobs seeing openai poaching employees from apple chatgpt would be gone from iphones before monday
@garymarcus Gary Marcus on x
breaking: company built on stolen IP and lies allegedly steals more IP
@mweinbach Max Weinbach on x
This really seems like the suit is against Liu and Tan personally and OAI by extension Apple seems to really be pushing Liu and Tan as the bad actors and OAI because it owns IO rather than OAI was asking them to do all of this stuff Nuance, but feels worth mentioning
@lexnfx Alexei Oreskovic on x
Apple's lawsuit lists IO Products as defendant but carefuly avoids naming Jony Ive, citing only Tang Tan and “other former Apple leaders” A nod to the indecorous optics of suing Ive? Or is the suit essentially Apple's way of doing a non-compete in California?
@doganuraldesign Dogan Ural on x
If Apple removed ChatGPT from store today And ChatGPT was only available on OpenAI's new devices... Would you switch to a new device? Or would you simply stick with your iPhone and use other AI apps instead?
@katiemiller Katie Miller on x
Sam Altman, thief.
@bonegpt Bone on x
apple's openAI case is so bearish for oAI. apple controls the most valuable surface. they are accusing the whole company, not just some ex employees. if discovery shows openAI really does act like this who will want to deal with them? apple has huge leverage right now, bet sam
@damonspiegel Damon on x
I spent some time with Sam Altman a few summers ago. After my chat, I cancelled my Chat GPT subscription and have never used it since. There was something about my conversation that just rubbed me the wrong way. This was the summer of 23. I continue to hear of more and more
@tekbog @tekbog on x
everything gets leaked in sv but “bring your project to the interview to show and tell” is next level
@garymarcus Gary Marcus on x
and let's not forget, liar.
@sahilypatel Sahil on x
apple is probably the last company you want to fight in court they've got some of the best lawyers in tech and $140b in cash apple doesn't file nor lose lawsuits very often. they definitely have a very strong case and will fight this aggressively. this is not going to end well
@edludlow Ed Ludlow on x
Apple is seeking: · A jury trial. · An order requiring OpenAI to stop the alleged misuse of Apple's trade secrets. · Destruction of any Apple proprietary materials in OpenAI's possession. · Redesign of upcoming OpenAI hardware products so they do not incorporate Apple's techn…
@neil_shah Neil Shah on x
Classic way to slow down the competition especially driven by former employees and with high chances the OpenAI devices might end up looking like Apple devices. Would be good to see more specifics of the alleged lawsuit on what IP infringement it highlights and how Apple knows
@signulll @signulll on x
just so that this is clear, apple is suing openai & io, the company founded by its own former chief design officer, jony ive. you genuinely could not write an episode of the ai wars this dramatic. that script would be rejected for being too on the nose. can you imagine steve j…
@katiemiller Katie Miller on x
OpenAI's last 24 hours: > Top Exec unexpectedly departs > Shuts down browser tool after 9 months > Sued for trade theft by Apple > Caught selling product to China against sanctions
@parkerortolani Parker Ortolani on x
never in a billion years would I have thought we'd see Jony Ive and Apple on opposite sides of a case, let alone one like this
@zackkorman Zack Korman on x
The Apple v OpenAI case is a good reminder that everyone sucks at insider threat detection. [image]
@gerritd Gerrit De Vynck on x
Major allegations about an Apple employee who joined OpenAI in Jan 2026, kept a laptop, found an exploit in Apple's systems and stole files over a multi-week time. This is similar to what Anthony Levandowski was accused of doing by Google back in 2018 [image]
@joyoftech @joyoftech on bluesky
Apple VS Open AI! www.geekculture.com/joyoftech/ jo... [image]
@carlquintanilla Carl Quintanilla on bluesky
GURMAN: “.. Suing OpenAI for trade secret theft could seriously slow down or even completely alter OpenAI's ability to compete with Apple devices.” — @bloomberg.com $AAPL — www.bloomberg.com/news/article... [image]
r/apple r on reddit
OpenAI Engineer's ‘LOL’ Moment Set Stage for Legal Fight With Apple
r/siliconvalley r on reddit
OpenAI Engineer's ‘LOL’ Moment Set Stage for Legal Fight With Apple
r/law r on reddit
OpenAI Engineer's ‘LOL’ Moment Set Stage for Legal Fight With Apple
r/ArtificialInteligence r on reddit
OpenAI Engineer's ‘LOL’ Moment Set Stage for Legal Fight With Apple
r/artificial r on reddit
OpenAI Engineer's ‘LOL’ Moment Set Stage for Legal Fight With Apple
r/tech_x r on reddit
OpenAI Engineer's ‘LOL’ Moment Set Stage for Legal Fight With Apple
@exoticspice101 @exoticspice101 on x
California and the Federal courts takes IP theft very seriously. Imagine giving up your career for OpenAI of all companies.
@givnerariel Ariel Givner on x
After reading through the Complaint, I think it's important to share the core legal elements as I think this will be one worth following. Apple's filing (July 10, 2026, N.D. Cal.) accuses Chang Liu, Tang Yew Tan, OpenAI, and io Products of federal trade secret misappropriation [i…
@mgsiegler M.G. Siegler on x
Some quick late Friday thoughts on the holy shit Apple v. OpenAI lawsuit. Potential damages aside, this could sidetrack OpenAI's hardware aspirations for years. Possibly forever. https://spyglass.org/...

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