Apple entered federal court on Friday with a lawsuit that blames OpenAI for profiting from confidential Apple hardware data allegedly pilfered by a former employee. The complaint identifies Chang Liu, an engineer who spent eight years on Apple’s most sensitive product programs before leaving for OpenAI in January 2026.
According to the filing, Liu uncovered an “authentication bug” on February 9 that let him access Apple’s shared network folders using a laptop that should have been returned to the company. Rather than reporting the flaw, Liu allegedly used the loophole to download a trove of files, including detailed engineering presentations, technical specifications, and proprietary project data related to unreleased Apple products.
Apple claims the stolen materials span “dozens” of documents, many marked confidential, and cover intricate circuit‑board designs that would be “invaluable to anyone developing hardware.” The lawsuit contends Liu continued to siphon data for several weeks while working on hardware projects for OpenAI, effectively giving the AI firm a shortcut to Apple’s next‑generation technology.
Legal claims and requested relief
The complaint seeks multiple injunctions to prevent OpenAI from using or disclosing the purportedly misappropriated information. Apple also asks the court for damages and a permanent injunction that would bar OpenAI from any future exploitation of Apple’s trade secrets.
In addition, Apple alleges that OpenAI conspired with Liu as part of a “grand scheme” to launch AI‑powered devices that could compete directly with Apple’s iPhone lineup. The filing includes internal messages between Liu and Yu‑Ting “Alyssa” Peng, a current Apple employee, where Liu reportedly mocked the bug’s discovery and boasted about his continued access.
Apple emphasizes that the bug was swiftly fixed after the company detected Liu’s activity. Server logs, the lawsuit says, show that only a few other users were affected by the flaw and none appear to have accessed confidential data.
OpenAI has not yet responded to the allegations. The case adds to a growing wave of litigation surrounding AI firms and the protection of proprietary information as the industry races to integrate advanced machine learning into consumer hardware.
This article was written with the assistance of AI.
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