Apple sues OpenAI after ex-engineer’s ‘LOL, I found out I can access’ message becomes key evidence in explosive trade secrets battle
One message in particular became the most talked about topic of the case. Former Apple engineer Chang Liu allegedly discovered that he still had access to Apple’s internal file servers even after leaving the company for OpenAI, according to the lawsuit filed in federal court in San Jose. According to Bloomberg, Apple claimed that instead of reporting the problem, he was joking about it in a message he sent to a former colleague.
“LOL, I found out I can reach [network storage]lol,” Liu wrote to former Apple colleague Alyssa Peng.
Apple claimed that Liu left the company with much more than his experience. According to the lawsuit, he was in possession of an Apple-issued MacBook that was never returned, was in close contact with an Apple employee who allegedly continued to share insider information, and most importantly, discovered a software bug that allowed him to continue accessing Apple’s internal file servers even after joining OpenAI.
This signals rising tensions between the two companies, which partnered in 2024 to integrate ChatGPT into Apple products. The lawsuit will complicate OpenAI’s highly anticipated IPO plans.
What does Apple accuse OpenAI of?
Apple alleged that OpenAI orchestrated a campaign to steal the iPhone maker’s trade secrets while it was trying to develop its own consumer hardware device. “Significant evidence has emerged showing that individuals employed by OpenAI wrongfully obtained Apple’s confidential and confidential information regarding our unpublished technologies, processes and products,” Apple said in a statement to AFP. “We will always defend the hard work and innovation of our teams and we are taking all necessary steps to do so.”
According to Apple, the effort went well beyond normal hiring practices, with allegations 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 wrote on Friday: “We are not interested in other companies’ trade secrets. We remain focused on building innovative technologies that empower people everywhere.”
‘LOL’ message that could be important evidence
The lawsuit 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 that 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 was terminated, according to Bloomberg.
According to court records, Liu allegedly sent the following message to former Apple employee Alyssa Peng: “LOL, [network storage]very funny.”
Apple said Liu later downloaded confidential presentations, hardware designs, manufacturing information and testing procedures while working at OpenAI.
The lawsuit also alleges that Peng responded, “I’m ready.”
Apple alleged that Peng later helped obtain additional internal information using his own Apple laptop, and that he also resigned and joined OpenAI’s hardware division in April.
Apple claims interviews were used to gather secrets
Another important focus of the case is Tang Tan, one of Apple’s most senior former hardware executives. Tan spent nearly 25 years at Apple before leaving in late 2023, helping oversee the design of products including the iPhone and Apple Watch.
Following his departure, Tan joined forces with former Apple design chief Jony Ive, OpenAI CEO Sam Altman, Evans Hankey and Scott Cannon for an ambitious AI hardware initiative.
That startup, io Products, was later acquired by OpenAI in a deal reportedly valued at $6.5 billion.
Apple now alleges that Tan played a central role in recruiting Apple engineers and collecting confidential product information during job interviews.
Tan allegedly questioned potential hires about unreleased Apple projects and encouraged them to share internal company details, according to the complaint.
“Later in the interview, Tan asked for more information about the same Apple project. This became an established pattern,” the lawsuit says.
The lawsuit marks a dramatic escalation of tensions between the two companies, which partnered in 2024 to integrate ChatGPT into Apple products.
This relationship has since deteriorated. In May, Bloomberg reported that OpenAI was considering legal action against Apple for allegedly failing to adequately promote the tech giant’s ChatGPT integration. “OpenAI, at every level from Technical Staff members to the Chief Hardware Officer, and in coordination with its partners, is stealing Apple’s trade secrets and confidential information,” Apple said in its 41-page complaint.
(With input from Bloomberg and AFP)
