Observed Signal · Jul 13, 2026 · Lawsuit · Source: techcrunch · Impact: 3/5 · Sentiment: Negative
Apple says ex-employee used rare bug to steal files
Apple has sued OpenAI, alleging the AI company stole trade secrets and recruited former Apple employees to learn proprietary information. In its complaint, Apple says a former system electrical engineer, Chang Liu, exploited a rare, previously unknown authentication zero-day bug to access Apple’s network weeks after leaving for OpenAI and downloaded dozens of confidential hardware-related files containing information about unreleased products. Apple says it has fixed the vulnerability, terminated the employee’s access, and identified the alleged activity in server logs. The suit was filed in the U.S. District Court for the Northern District of California and demands a jury trial. Apple did not provide detailed technical information about the bug in public statements, and TechCrunch reports Apple did not respond to requests for additional comment.
Major legal action between two leading tech companies tied to a zero-day authentication vulnerability highlights risks in access control and employee offboarding; implications for enterprise security and identity infrastructure across tech sectors.
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Key Takeaways & Evidence Grounding
- Apple filed a lawsuit accusing OpenAI of stealing trade secrets and recruiting former Apple employees to obtain proprietary information.
- Apple alleges former system electrical engineer Chang Liu exploited a rare, previously unknown authentication zero-day bug to access Apple’s network after leaving for OpenAI.
- Apple says Liu downloaded dozens of confidential hardware-related files containing details about unreleased products, engineering presentations, and technical specifications.
- Apple states it has fixed the authentication bug and terminated the employee’s access; it filed the suit in the U.S. District Court for the Northern District of California and demanded a jury trial.
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“On Friday, Apple dropped the bombshell news it was suing OpenAI over the alleged theft of trade secrets....”
“Apple spokespeople did not respond to an email from TechCrunch with questions about the security vulnerability, how it was exploited, and wh...”
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Apple Presents New Evidence in OpenAI Trade Secret Lawsuit
Apple has filed what it describes as "shocking evidence" in its ongoing trade secret theft lawsuit against OpenAI. The evidence was uncovered following the forensic analysis of a work laptop returned by former Apple employee Chang Liu, who is now employed at OpenAI. Apple alleges that Liu utilized confidential Apple circuit schematics and internal engineering tools at OpenAI. Furthermore, Apple claims that Liu coordinated with OpenAI colleague Yu-Ting Peng to destroy evidence once he became aware of Apple's internal investigation. OpenAI has defended Liu, attributing his access to "residual access" issues caused by Apple's failure to manage systems properly, whereas Apple alleges he exploited an authentication bug to download files. Apple is currently seeking a preliminary injunction to stop OpenAI from developing hardware based on its proprietary technology.
Apple sues OpenAI over alleged trade secret theft
On July 10, 2026, Apple sued OpenAI in the U.S. District Court for the Northern District of California, accusing OpenAI, its 2025 acquisition io Products and former Apple employees Chang Liu and Tang Yew Tan of stealing trade secrets, breaching contracts and misusing confidential information to speed consumer AI-hardware development. Apple alleges Liu—who joined OpenAI in January 2026—downloaded confidential Apple hardware and supplier files and failed to return an Apple-issued laptop; it says Tang, now OpenAI’s head of hardware, solicited recruits to bring Apple work samples and led a novel AI-device project. Apple seeks injunctions, damages, return of materials and preservation of evidence. OpenAI denies the claims, saying it does not seek others' secrets; reports note OpenAI's work with longtime Apple designer Jony Ive and rising competition over AI hardware.
Apple Seeks Injunction, Alleges More Ex-Employees Shared Data with OpenAI
Apple has asked a court for a preliminary injunction in its trade-secrets lawsuit against OpenAI, aiming to stop the company from developing AI devices or products based on Apple technology. In a new filing Apple requested expedited discovery from accused OpenAI employees Chang Liu and Tang Yew Tan, OpenAI (and its foundation), and io, the device startup co-founded by Jony Ive. Apple says its investigation indicates 11 additional former Apple employees may have been witnesses or involved, and alleges former employees took screenshots or discussed proprietary information before joining OpenAI. OpenAI publicly denied the claims, calling the injunction request false and unnecessary.
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