Apple Sues OpenAI Over Alleged Trade Secret Theft

Could a single ‘LOL’ message worsen Apple and OpenAI’s relationship? A new lawsuit alleges trade secret theft, unauthorised access and misuse of confidential information.

Apple has filed a lawsuit against OpenAI in the US District Court in San Jose, California, accusing the artificial intelligence (AI) company and several former Apple employees of misappropriating confidential information to support OpenAI’s expanding AI hardware business.

The complaint alleges that former Apple engineer Chang Liu continued accessing Apple’s internal file servers after leaving the company for OpenAI because of a software flaw. Apple claims Liu discovered the vulnerability, retained access instead of reporting it, and informed a former colleague in a message that has become central to the case.

According to the filing, Liu wrote: “LOL, I found out I can access the [network storage], so funny.”

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

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The company further claims he failed to return his Apple-issued MacBook after leaving and remained in contact with former Apple employee Alyssa Peng, who allegedly continued sharing internal company information before later joining OpenAI’s hardware division.

The lawsuit also names OpenAI, its hardware subsidiary io Products, former Apple executive Tang Yew Tan, now OpenAI’s chief hardware officer, and references the AI hardware venture established by Tan, former Apple design chief Jony Ive, OpenAI chief executive Sam Altman, Evans Hankey and Scott Cannon. OpenAI acquired io Products in a deal reportedly valued at US$6.5 billion.

Apple further alleges that interviews conducted by Tan were used to gather information on unreleased Apple products and internal projects, describing the practice as a recurring pattern.

The company contends that OpenAI orchestrated a broader effort to obtain confidential technologies, processes and product information from former employees.

In a statement, Apple said it would take all appropriate steps to protect its intellectual property and innovations. OpenAI denied the allegations, stating that it has no interest in competitors’ trade secrets and remains focused on developing its own technologies.

The lawsuit marks a significant deterioration in relations between the two companies, which partnered in 2024 to integrate ChatGPT into Apple devices. The legal dispute also comes as OpenAI prepares for a widely anticipated initial public offering (IPO).

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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