Apple filed a federal trade secret lawsuit on July 10 against OpenAI, alleging former employees stole confidential hardware files to advance the AI company’s push into consumer devices.

The complaint, filed in the U.S. District Court for the Northern District of California under the Defend Trade Secrets Act (DTSA), names former senior system electrical engineer Chang Liu and former Vice President of product design Tang Yew Tan, now OpenAI’s Chief Hardware Officer, along with OpenAI and its hardware subsidiary io Products.

According to the 41-page filing, Liu left Apple after eight years, skipped his exit interview, and did not return his work laptop. Weeks into his tenure at OpenAI, the complaint states, Liu exploited a “rare, previously unknown authentication bug” to access Apple’s shared network storage and downloaded dozens of files covering unreleased products, engineering specifications, and technical presentations.

Apple said it discovered the breach while reviewing messages between Liu and a then-current employee. “LOL, I found out I can access the [network storage], so funny,” Liu wrote in one message cited in the complaint. The flaw allowed Liu to retain valid access credentials after his termination without triggering standard intrusion detection.

The lawsuit accuses Tan of using Apple’s internal project code names during OpenAI recruiting sessions, asking candidates to bring Apple hardware components to interviews, and coaching departing Apple employees on how to avoid Apple’s security exit procedures.

Tan co-founded io Products with designer Jony Ive, a startup OpenAI acquired. Ive is not named as a defendant. Apple said the scheme sought to give OpenAI an “unlawful shortcut” to launch AI-powered devices competitive with the iPhone.

“This case is about Apple’s former employees stealing Apple’s trade secrets for the benefit of OpenAI,” the complaint states.

OpenAI denied the allegations, saying the company has “no interest in” Apple’s confidential technology.