Apple Lawsuit Reveals How Former Engineer Exploited Authentication Bug to Access Secret Files

Apple's escalating legal battle with OpenAI has revealed new allegations that a former engineer exploited an authentication bug to continue accessing its confidential network storage after joining the AI startup. The comapny says the incident was part of a broader effort to obtain trade secrets and accelerate OpenAI's hardware ambitions.



According to Bloomberg, the breach centered on an authentication vulnerability that former iPhone engineer Chang Liu discovered still allowed him to access Apple's internal network storage after leaving the company to join OpenAI's newly formed hardware division. Apple alleges Liu realized he could still access the company's internal network storage and, rather than report the issue, messaged former colleague Alyssa Peng, "LOL, I found out I can access the [network storage], so funny." The company claims Liu then downloaded dozens of confidential files, including engineering presentations, hardware designs, manufacturing details, and testing procedures. Peng later allegedly helped obtain additional confidential information before joining OpenAI herself a few months later.


The lawsuit portrays the incidents as part of a broader effort led by Tang Tan, Apple's former vice president of product design who now serves as OpenAI's chief hardware officer. Tan originally departed Apple to co-found io Products alongside former design chief Jony Ive, a hardware venture OpenAI subsequently acquired for $6.5 billion. Known during his 25-year career at Apple for moving fast and taking risks, Tan led design work on the iPhone and Apple Watch before his exit. Apple alleges that in his new role, Tan turned job interviews into intelligence-gathering sessions. He reportedly asked prospective hires to bring confidential prototypes and hardware components, including batteries and main logic boards, to show-and-tell meetings at OpenAI's offices.

According to the complaint, OpenAI distributed an internal Apple offboarding document that employees referred to as "a checklist that Tang put together." The document allegedly helped recruits anticipate Apple's security procedures before resigning. The aggressive recruiting drive specifically targeted engineers working under incoming Apple CEO John Ternus. The recruiting effort continued as recently as June, when Apple's head of vision products and smart glasses, Paul Meade, left for OpenAI. OpenAI now employs more than 400 former Apple workers, drawing them in with competitive salaries and lucrative stock options.

Before filing suit, Apple says it attempted to resolve the dispute privately in February, asking OpenAI to investigate the transferred data and halt the practice. After receiving no response, the company filed its formal complaint. OpenAI spokesperson Drew Pusateri responded to the lawsuit on X, writing, "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."

The tension underscores a growing hardware rivalry between the two tech giants. OpenAI is actively developing AI-powered consumer hardware, including a potential smartphone replacement and wearable devices that could eventually challenge the iPhone. At the same time, Apple is pushing forward with its own ambitious hardware roadmap, preparing to launch camera-equipped AirPods and intelligent smart glasses in the coming years.