Apple sues OpenAI after ex-engineer allegedly used bug to steal trade secrets - Ars Technica
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Apple is gunning for OpenAI, demanding steep penalties after stumbling on a “rare” bug that temporarily allowed a poached employee that joined OpenAI to maintain access to confidential information on Apple servers for weeks after his termination.
In a lawsuit filed Friday, Apple sought several injunctions blocking OpenAI from using confidential information allegedly stolen by former employees. According to Apple’s complaint, OpenAI conspired with former Apple employees as part of a grand scheme to “take an unlawful shortcut” and launch a line of AI-powered devices as marketable as Apple’s iPhone.
Apple explained that it found a bug while investigating internal messages between a then-current employee, Yu-Ting “Alyssa” Peng, and an engineer who spent eight years “working on some of Apple’s most sensitive product development programs,” Chang Liu.
Liu left Apple for OpenAI in January 2026. However, on February 9, Liu discovered an “authentication bug” that was unknown to Apple at the time. The bug allowed him to “access Apple’s shared network folders,” while using an Apple-issued work laptop that he should have returned, the lawsuit said.
Rather than report the bug to Apple, Liu allegedly seized the opportunity to download files detailing various aspects of Apple’s business.
Specifically, Apple alleged that “over several weeks, while developing hardware for OpenAI, Mr. Liu surreptitiously accessed and downloaded dozens of Apple’s confidential hardware-related files, including voluminous, detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data,” the lawsuit claimed.
Particularly concerning to Apple, Liu allegedly downloaded a presentation on Apple’s complex circuit boards that Apple claimed would be “invaluable to anyone developing hardware.” Some files were “expressly labeled as confidential,” Apple claimed.
“LOL,” Liu wrote in a message to Peng, which was among many mocking Apple that Liu apparently left on his Apple-issued work laptop. “I found out I can access the [network storage], so funny.”
In a footnote, Apple confirmed that the bug was “quickly fixed” after they found Liu’s messages and that it did not appear to be widely exploited.
“Although Apple is still investigating, server logs show that, unlike Mr. Liu, the few other users affected by this bug do not appear to have accessed or stolen Apple’s confidential information,” the lawsuit said.
Yet fixing the bug won’t end the alleged theft of Apple trade secrets, the complaint said.
The exchanges between Liu and Peng, as well as other evidence that Apple cited—including support for allegations that Apple’s former vice president of product design for iPhone, Tang Yew Tan, is spearheading the OpenAI scheme—are just the “tip of the iceberg,” Apple claimed.
In a statement provided to Ars, a spokesperson confirmed that OpenAI is still reviewing Apple’s complaint but disputes the core claim that OpenAI is relying on Apple insights to build a hardware business that could rival Apple’s device empire.
“We have no interest in other companies’ trade secrets,” OpenAI’s spokesperson said. “We remain focused on building innovative technology that empowers people everywhere.”
This weekend on X, OpenAI CEO Sam Altman went further when responding to another user claiming that OpenAI was afraid of Apple’s lawsuit. In a post, Altman wrote, “I am not afraid of Apple, but I have tremendous respect for them.”
OpenAI requested Apple “show and tells”
Apple is urging the court to intervene and stop OpenAI from benefiting from the allegedly rampant theft after poaching more than 400 former Apple employees.
Beyond Liu and Peng’s alleged conspiring, the discovery process will reveal an even broader “pattern of theft of Apple’s trade secrets by OpenAI employees who were formerly at Apple,” the smartphone manufacturer alleged.
Supposedly directing the recruiting scheme is Tang Tan, who spent 24 years at Apple before joining former Apple design chief Jony Ive’s io Products and then becoming OpenAI’s chief hardware officer in 2025.
According to Apple, Tan has relied on his insider knowledge, like knowing secret project code names, to get Apple employees to discuss unreleased products during job interviews. He also allegedly used an internal Apple document to create a checklist to help departing Apple employees evade security measures when stealing trade...