Apple's bombshell trade secrets lawsuit against OpenAI — filed July 10 in federal court in Northern California — is already disrupting the AI company's plans for a historic initial public offering, according to multiple reports.

The lawsuit alleges that OpenAI orchestrated a systematic campaign to steal Apple's intellectual property for developing consumer hardware devices. The complaint states: "At every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple's trade secrets."

The most explosive allegation involves OpenAI's Chief Hardware Officer Tang Tan — a former Apple vice president. Apple claims Tan directed Apple employees interviewing at OpenAI to bring "actual parts" from Apple to their interviews for "show and tell" sessions.

Apple also alleges that OpenAI coached departing Apple employees on how to evade security protocols, and that former Apple engineer Chang Liu stole an Apple laptop. IO Products — Jony Ive's startup acquired by OpenAI for $6.4 billion — is also named in the suit.

IPO Under Threat

Bloomberg reports that the damage is already landing. The lawsuit has chilled OpenAI's recruiting efforts and complicated its hardware partnerships. OpenAI confidentially filed for an IPO in June 2026, targeting a valuation of up to $1 trillion.

According to The Next Web, Apple's suit is "already hurting OpenAI's iPhone-killer" ambitions. Semafor reports the lawsuit "highlights broader tensions" between the one-time partners.

OpenAI declined to comment on the IPO impact. A spokesperson stated: "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."

The case comes just two months after OpenAI defeated Elon Musk in a high-profile trial over claims the company abandoned its nonprofit mission.

Apple is seeking damages, injunctions, and a court order barring OpenAI from using its trade secrets. The company declined to comment on whether the lawsuit would affect the existing ChatGPT-Apple Intelligence partnership.

Sources