Apple sues OpenAI after ex-engineer's 'LOL, I found out I can access' message becomes key evidence in explosive trade secrets battle

Apple's lawsuit against OpenAI: Apple has launched a sweeping lawsuit against OpenAI, accusing the artificial intelligence company of orchestrating a campaign to obtain the iPhone maker's confidential trade secrets while building its own AI-powered hardware business.

One message, in particular, has become the biggest talking point in the case. According to the lawsuit filed in federal court in San Jose, former Apple engineer Chang Liu allegedly discovered that he could still access Apple's internal file servers even after leaving the company for OpenAI. Instead of reporting the issue, Apple claims he joked about it in a message to a former colleague, reports Bloomberg.

"LOL, I found out I can access the [network storage], so funny," Liu wrote to his former Apple colleague, Alyssa Peng.


Apple alleged Liu left the company with more than just his experience. According to the lawsuit, he kept an Apple-issued MacBook that was never returned, maintained close contact with an Apple employee who allegedly continued sharing internal information, and most importantly, discovered a software bug that allowed him to keep accessing Apple's internal file servers even after joining OpenAI.

This marks an escalation in tensions between two companies that partnered in 2024 to integrate ChatGPT into Apple’s products. The suit will complicate OpenAI’s plans for a hotly anticipated IPO.

What is Apple accusing OpenAI of?

Apple alleged that OpenAI orchestrated a campaign to steal the iPhone maker’s trade secrets as it tries to develop its own consumer hardware device. “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.”

According to Apple, the effort went far beyond normal hiring practices, alleging that interview sessions were sometimes used to gather details about Apple's future products and internal projects.

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

The 'LOL' message that could become crucial evidence

The suit names OpenAI, its hardware subsidiary io Products—the company co-founded by former Apple design chief Jony Ive—and two former Apple employees: Tang Yew Tan, now OpenAI’s chief hardware officer, and engineer Chang Liu.

The company claimed Liu never returned his Apple-issued MacBook and also discovered a software bug that allowed him to continue accessing Apple's internal storage systems after his employment had ended, according to Bloomberg.

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

Apple says Liu then downloaded confidential presentations, hardware designs, manufacturing information and testing procedures while already employed at OpenAI.

The lawsuit further alleges that Peng responded: "I'm ready."

Apple claimed Peng later helped obtain additional internal information using her own Apple laptop before she also resigned and joined OpenAI's hardware division in April.

Apple alleges interviews were used to gather secrets

Another major focus of the lawsuit is Tang Tan, one of Apple's most senior former hardware executives. Tan spent roughly 25 years at Apple, helping oversee the design of products including the iPhone and Apple Watch before leaving in late 2023.

After his departure, Tan joined forces with former Apple design chief Jony Ive, OpenAI CEO Sam Altman, Evans Hankey and Scott Cannon on an ambitious AI hardware venture.

That startup, io Products, was later acquired by OpenAI in a deal reportedly worth $6.5 billion.

Apple now alleges Tan played a central role in recruiting Apple engineers and gathering confidential product information during job interviews.

According to the complaint, Tan allegedly questioned prospective hires about unreleased Apple projects and encouraged them to share internal details.

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

The lawsuit marks a dramatic escalation in tensions between two companies that partnered in 2024 to integrate ChatGPT into Apple’s products.

That relationship has since deteriorated. In May, Bloomberg reported OpenAI was itself considering legal action against Apple, alleging the tech giant had failed to adequately promote the ChatGPT integration. “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,” Apple said in the 41-page complaint.

(With inputs from Bloomberg and AFP)