'LOL, I found out I can access...': Apple points to former employer's message in lawsuit against OpenAI

According to the lawsuit, Liu discovered that he could still access Apple's internal file servers after joining OpenAI. Apple claims he did not report the issue and instead joked about it in a message to a former colleague.

Kanishka Singharia
Updated12 Jul 2026, 05:22 PM IST
Apple sues OpenAI, alleges theft of trade secrets in AI hardware race.
Apple sues OpenAI, alleges theft of trade secrets in AI hardware race. (REUTERS)

Apple has filed a federal lawsuit against OpenAI, accusing the artificial intelligence company of improperly obtaining confidential trade secrets as it builds its own AI hardware business, Bloomberg reported.

Filed in federal court in San Jose, the complaint centres on allegations that former Apple employees retained access to sensitive company information after leaving and that OpenAI used recruitment efforts to obtain details about Apple's unreleased technologies and products.

One of the key allegations involves former Apple engineer Chang Liu. According to the lawsuit, Liu discovered that he could still access Apple's internal file servers after joining OpenAI. Apple claims he did not report the issue and instead joked about it in a message to a former colleague.

According to court filings, Liu allegedly wrote to former Apple employee Alyssa Peng: "LOL, I found out I can access the [network storage], so funny."

Apple alleges confidential files were accessed after employment ended

Apple claims Liu left the company with more than his professional experience. The lawsuit alleges that he never returned an Apple-issued MacBook, remained in contact with an Apple employee who continued sharing internal information, and exploited a software bug that allowed him to access Apple's internal storage systems after his employment had ended.

According to Bloomberg, Apple alleges Liu downloaded confidential presentations, hardware designs, manufacturing information and testing procedures while already working at OpenAI.

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The complaint further alleges that Peng responded to Liu's message by saying: "I'm ready."

Apple claims Peng later obtained additional internal information using her Apple laptop before resigning and joining OpenAI's hardware division in April.

Apple accuses OpenAI of targeting trade secrets through recruitment

Apple alleges the company carried out a broader effort to obtain its trade secrets while developing its own consumer hardware products.

"Significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes and products," Apple said in a statement to AFP. “We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so.”

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According to the lawsuit, the effort extended beyond standard recruitment. Apple alleges that job interviews were sometimes used to gather information about future Apple products and confidential internal projects.

Responding to AFP's request for comment on Friday, an OpenAI spokesperson said: "We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere."

Former Apple executive Tang Tan also named in complaint

The lawsuit names OpenAI, its hardware subsidiary io Products, and two former Apple employees: Tang Yew Tan, now OpenAI's chief hardware officer, and engineer Chang Liu.

Apple alleges Tang Tan, who spent around 25 years at the company overseeing the development of products including the iPhone and Apple Watch, played a significant role in recruiting Apple engineers after leaving in late 2023.

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Following his departure, Tan joined former Apple design chief Jony Ive, OpenAI CEO Sam Altman, Evans Hankey and Scott Cannon in launching the AI hardware startup io Products. OpenAI later acquired the company in a deal reportedly worth $6.5 billion.

According to the complaint, Tan questioned prospective hires about unreleased Apple projects during interviews and encouraged them to disclose internal information.

The lawsuit states: "Then, in the interview, Tan solicited more information about that same Apple project. This has become an established pattern."

Partnership between Apple and OpenAI under fresh strain

The legal action marks a sharp escalation in tensions between Apple and OpenAI, which partnered in 2024 to integrate ChatGPT into Apple's products.

That relationship has since weakened. In May, Bloomberg reported that OpenAI was considering legal action against Apple, alleging the company had failed to sufficiently promote the ChatGPT integration.

In its 41-page complaint, Apple alleged: "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 and confidential information."

About the Author

Kanishka Singharia is a Senior Content Producer at Mint with a passion for news, trends, and the stories shaping the digital world. She specialises in spotting viral narratives by constantly tracking social media platforms and turning them into engaging, reader-friendly stories. Her work ranges from fast-paced breaking updates to sensitive human-interest features, blending speed with clarity. <br><br> With over four years of experience in news and trend reporting, Kanishka has worked with leading organisations such as Hindustan Times and Times Now. She moves seamlessly between profiling business leaders and telling the stories of everyday people, covering national developments just as effortlessly as the memes and conversations that dominate online culture. <br><br> She also reports on real estate developments and civic challenges in major urban hubs like Bengaluru, Delhi, and Gurugram. Her coverage frequently explores the struggles of startup founders, inspiring journeys of CEOs, and the experiences of candidates dealing with the complexities of visa processes. <br><br> Kanishka holds an undergraduate degree in Journalism from Delhi University and a diploma from the Indian Institute of Mass Communication. Rarely offline, she spends much of her time scrolling through X, LinkedIn, Reddit, Instagram, and Facebook in search of the next big story. When she finally logs off, she enjoys binge-watching shows and exploring cafes in pursuit of good food and better conversations.

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