Apple’s Trade Secrets Lawsuit Against OpenAI: The Wildest Allegations

# openai # apple

Apple’s trade secret lawsuit against OpenAI contains numerous extraordinary allegations, depicting a coordinated effort to extract confidential information from current and former Apple employees. Most striking is the casual tone of the alleged misconduct, including a message stating, “LOL, I found out I can access the [network storage], so funny.”

The 41-page complaint, filed on Friday, includes unusually detailed allegations. Here are the most notable points:

“Normalized and exemplified by leadership.” By describing OpenAI this way, Apple clarifies that the lawsuit targets not just rogue employees, but a culture of misconduct led from the top.“Rotten to its core.” Apple uses a fruit analogy to criticize OpenAI’s behavior. Rumors suggest OpenAI is developing a hardware device to challenge the iPhone, potentially a smartphone of its own. However, Apple emphasizes that OpenAI’s product allegedly relies on misappropriated trade secrets. “OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets,” the complaint states.“This is the tip of the iceberg.” Beyond documenting allegations against former employees, Apple suggests the misconduct outlined is only a fraction of what will be uncovered during discovery. This process involves obtaining corporate documents and communications, including texts and emails, potentially revealing more instances of such behavior. “Discovery will expose that the misappropriation has been occurring on a scale many times greater than the several instances described below,” Apple’s complaint states.“LOL, I found out I can access the [network storage], so funny.” Apple states that Chang Liu, a former senior systems electrical engineer at Apple who joined OpenAI, sent this message to Yu-Ting “Alyssa” Peng, an alleged conduit between Apple and OpenAI. Peng later joined OpenAI but is not a defendant. She allegedly replied, “I’m ready.” Apple claims Liu accessed Apple’s systems by exploiting an authentication bug from Peng’s Apple-issued work computer.“I still have another computer.” Liu allegedly texted this shortly after leaving Apple, referring to another Apple computer he planned to use for accessing confidential information. Apple discovered the message on Peng’s work laptop.“Didn’t even know we could take those from the office.” A striking allegation is that OpenAI’s chief hardware officer, Tang Yew Tan, who spent 24 years at Apple (most recently as VP of product design for iPhone and Apple Watch), directed job candidates to bring “actual parts” from Apple to interviews for “show and tell sessions.” One candidate was surprised, not realizing Apple parts could be removed from the office. Apple also claims employees were instructed to bring “CAD/design artifacts” and “prototypes” to interviews.Avoiding the “dreaded walkout.” Apple alleges OpenAI coached departing employees on evading security procedures to avoid detection of alleged trade secret theft. The complaint claims OpenAI circulated an internal document marked “Need to know” to new hires, detailing how to avoid the “dreaded walkout.” This procedure immediately removes employees upon resignation, preventing them from working the typical two weeks and accessing confidential information.“Let OpenAI know ‘asap’” if asked to sign anything when quitting Apple. The complaint alleges that if departing employees were asked to sign documents during exit interviews, they should notify OpenAI immediately and were advised not to sign.“Over four hundred former Apple employees now working at OpenAI.” The complaint highlights the extent to which Apple employees have left for OpenAI. Apple uses this figure to illustrate the potential scale of the problem, noting that “it is not surprising that certain OpenAI personnel have knowledge of Apple’s confidential and proprietary information, which they are obligated to keep confidential. But OpenAI has resorted to exploiting this confidential information…”“io…access, exploited and used Apple’s secret, proprietary industrial design techniques, processes, and know-how related to metal-finishing.” Founded by former Apple employees, including Jony Ive, io was acquired by OpenAI last year in a $6.5 billion deal. It is now a defendant, as Apple alleges the firm used industrial design techniques by misleading a partner into believing it had Apple’s permission for a “confidential metal-finishing technique.” Apple also claims OpenAI approached a supplier using confidential information about design and components related to power and batteries, using “internal terminology” to ask questions “only Apple-insiders would know to ask.”“Apple is left with no choice.” While typical legal phrasing, this suggests Apple may have attempted to resolve the issue outside court. The tech giant states it contacted OpenAI in February with concerns, but received no response.

So far, OpenAI has only commented publicly via a statement on X on Friday: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”

Related article

Comments (0)