• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Apple

Apple Calls on Bloomberg to Retract Story That Claimed China Snuck Spy Chips on Apple Servers

By
Glenn Fleishman
Down Arrow Button Icon
By
Glenn Fleishman
Down Arrow Button Icon
October 19, 2018, 6:59 PM ET

Apple CEO Tim Cook said Bloomberg Businessweek should retract an investigative article it published Oct. 4 that claimed servers bought by Apple, Amazon, and over two dozen other unidentified companies contained spy circuitry installed by China.

In an interview with Buzzfeed News, Cook said: “There is no truth in their story about Apple. They need to do that right thing and retract it.” Cook, who said he was involved in discussions with Bloomberg reporters from the beginning, stated that the news organization never presented Apple with specific details, and believes the story relied on “vague secondhand accounts.” Apple previously denied it had contacted or been contacted by the FBI or other government agencies, also claimed in the story.

Apple didn’t immediately reply to Fortune‘s request for comment.

Buzzfeed noted that Apple has never previously asked publicly for an article’s retraction, even when the company has denied its accuracy. A search of newspaper archives appears to confirm that. The radio program This American Life chose to retract a 2012 episode about Apple’s major Chinese manufacturing partner, Foxconn, after it says it discovered the story’s primary contributor had invented details and changed facts.

Bloomberg’s investigation said that the Chinese government had infiltrated the supply chain for Super Micro, a major manufacturer of motherboards used in servers. Motherboards contain the primary processor, memory, and other circuitry for a computer to operate.

Through secret design changes in the factory, the Chinese military was able to insert a small custom chip it had designed into motherboards for the video-compression server maker Elemental, which relied on Super Micro for manufacturing. These circuits could subvert the operating system and communicate over the Internet to control servers operated by China to siphon information of any kind, including sensitive data—such as private encryption keys—transmitted within a server, and launch attacks from a privileged position inside the corporate and government networks on which Elemental servers were installed.

The blockbuster account has roiled information security experts as well as journalists who have extensively covered the field, as no one has yet been able to confirm the story. The Bloomberg article relied on 17 anonymous sources in the U.S. government and associated with Apple and other companies.

While no party involved has argued that Bloomberg fabricated information, Cook’s call for a retraction comes closest to alleging that the news outlet failed to verify accounts provided by its sources.

One expert quoted in the story by name, Joe Fitzpatrick, spoke to Bloomberg during the reporting process about the general form of an attack as described in the article. Later, in a podcast, he told Bloomberg that the scenario described by Bloomberg “didn’t make sense.” He also said that Bloomberg’s account matched his hypothetical scenario so closely that it “seemed like they had been lifted from the conversations I had about theoretically how hardware implants work.”

Bloomberg continues to stand by its reporting, according to a statement provided to Fortune by a company spokesperson. “Bloomberg Businessweek’s investigation is the result of more than a year of reporting, during which we conducted more than 100 interviews. Seventeen individual sources, including government officials and insiders at the companies, confirmed the manipulation of hardware and other elements of the attacks. We also published three companies’ full statements, as well as a statement from China’s Ministry of Foreign Affairs. We stand by our story and are confident in our reporting and sources.”

A number of companies, government agencies, independent security analysts, and government officials have released detailed rebuttals or made explicit statements rejecting most of the article’s account about the discovery of malicious hardware.

Apple released a statement on Oct. 4, “What Businessweek got wrong about Apple,” and sent a letter on Oct. 8 to Congress denying both general and specific claims. Amazon acquired Elemental in 2015. It denied the details of the story as relates to that firm and its use of Elemental servers.

Super Micro told Reuters that it had never sold servers with malicious chips, never found any in hardware it had manufactured, were never told by a customer they had discovered any, and that no government agency had ever contacted the firm.

The Department of Homeland Security also released a statement, saying on Oct. 6 “we have no reason to doubt the statements from the companies named in the story.” The British national cyber security agency also backed Apple and Amazon’s statement.

About the Author
By Glenn Fleishman
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Most Popular

placeholder alt text
Real Estate
Mark Zuckerberg gifted noise-canceling headphones to his Palo Alto neighbors because of the nonstop construction around his 11 homes
By Dave SmithDecember 25, 2025
10 hours ago
placeholder alt text
Personal Finance
Trump turns government into giant debt collector with threat to garnish wages on millions of Americans in default on student loans
By Annie Ma and The Associated PressDecember 24, 2025
1 day ago
placeholder alt text
Success
Chinese billionaire who has fathered more than 100 children hopes to have dozens of U.S.-born boys to one day take over his business
By Emma BurleighDecember 25, 2025
11 hours ago
placeholder alt text
Retail
Trump just declared Christmas Eve a national holiday. Here’s what’s open and closed
By Dave SmithDecember 24, 2025
2 days ago
placeholder alt text
Success
Billionaire philanthropy's growing divide: Mark Zuckerberg stops funding immigration reform as MacKenzie Scott doubles down on DEI
By Ashley LutzDecember 22, 2025
3 days ago
placeholder alt text
Success
Meet the millennial father of six who rebuilt his life through the trades—and questions America's obsession with college
By Eva RoytburgDecember 24, 2025
1 day ago

Latest in

InvestingCollectibles
Logan Paul auctions off $5.3 million Pokémon card, urging young people to invest more in nontraditional assets: ‘Don’t be afraid to take a risk’
By Sydney LakeDecember 25, 2025
6 hours ago
Kiara Nirghin, the co-founder and CTO of the applied AI lab Chima
AIBrainstorm AI
Gen Z founder on ‘AI anxiety’ and being pigeonholed as generation shortcut: that’s the ‘biggest misconception’
By Nick LichtenbergDecember 25, 2025
9 hours ago
Mark Zuckerberg stands in a doorway
Real EstateMark Zuckerberg
Mark Zuckerberg gifted noise-canceling headphones to his Palo Alto neighbors because of the nonstop construction around his 11 homes
By Dave SmithDecember 25, 2025
10 hours ago
SuccessMillionaires
Meet the millionaires living the ‘underconsumption’ life: They drive secondhand cars, batch cook, and never buy new clothes
By Eleanor PringleDecember 25, 2025
10 hours ago
xmas
Europehistory
Christmas 500 years ago was a drunken 6-week feast that may have been considerably better than the modern holiday, medieval historian says
By Bobbi Sutherland and The ConversationDecember 25, 2025
10 hours ago
Panos Panay, Senior Vice President, Devices and Services, Amazon
AIBrainstorm AI
Amazon’s Alexa chief predicts an end to doom scrolling: the next generation is ‘going to just think differently’
By Nick LichtenbergDecember 25, 2025
10 hours ago