Apple’s trade secret lawsuit against OpenAI is packed with a number of extraordinary allegations that paint a picture of a coordinated effort to extract confidential information from current and former Apple employees. The 41-page complaint, filed on Friday, includes one message that reads, ‘LOL, I found out I can access the [network storage], so funny.’
Here are some of the most striking allegations from the complaint.
Also read: New York Times and Daily News Accuse OpenAI of Hiding Evidence in Copyright Trial
‘Normalized and exemplified by leadership’
Apple is making it clear its lawsuit isn’t just focused on rogue employees, but that misconduct like this is part of OpenAI’s culture and is led from the top. The complaint describes OpenAI’s behavior as ‘normalized and exemplified by leadership.’
‘Rotten to its core’
Leave it to Apple to work a rotten fruit analogy into its criticism. The AI model maker is rumored to be working on a hardware device to challenge the iPhone, potentially a smartphone of its own. But Apple wants to stress that what OpenAI is developing was allegedly built with Apple’s 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.
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‘This is the tip of the iceberg’
In addition to documenting the allegations against its former employees, Apple is suggesting that the alleged misconduct outlined in the complaint is only a fraction of what it will uncover after the discovery process gets underway. ‘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 says that Chang Liu, previously a senior systems electrical engineer at Apple before joining OpenAI, sent this message to an Apple employee, Yu-Ting ‘Alyssa’ Peng, who allegedly was a conduit between Apple and OpenAI. Peng later left to join OpenAI herself, but is not a defendant in the lawsuit. Peng allegedly replied to the message, ‘I’m ready.’ Apple claims that Liu was able to access Apple’s systems by exploiting an authentication bug, which he did from his former colleague’s Apple-issued work computer.
‘I still have another computer’
Liu allegedly also texted this within hours of leaving Apple, referring to another Apple computer he allegedly planned to use to access Apple’s confidential information. Apple discovered the message on his former colleague’s Apple-issued work laptop.
‘Didn’t even know we could take those from the office’
One of the wilder allegations is that OpenAI job candidates working at Apple were directed by OpenAI Chief Hardware Officer Tang Yew Tan, who spent 24 years at Apple, most recently as VP of product design for iPhone and Apple Watch, to bring ‘actual parts’ from Apple to their interviews at OpenAI for ‘show and tell sessions.’ One candidate was surprised by the request, saying he didn’t even realize that Apple parts could be taken out of the office, Apple alleges. Apple also says employees were instructed to bring ‘CAD/design artifacts’ and ‘prototypes’ to interviews.
Avoiding the ‘dreaded walkout’
Apple alleges that OpenAI coached departing Apple employees on how to evade Apple’s security procedures to reduce the chance their alleged trade secret theft would be caught. The complaint claims that OpenAI circulated an internal Apple document bearing a ‘Need to know’ designation to new hires with details of how to avoid the ‘dreaded walkout,’ which would immediately remove them from Apple after giving notice, instead of letting them continue to work for the typical two weeks, which would allow them more time to access Apple’s confidential information.
‘Let OpenAI know ‘asap” if asked to sign anything when quitting Apple
In addition to helping OpenAI job candidates avoid Apple’s security procedures, the complaint alleges that if Apple asked departing employees to sign anything at an exit interview, they should let OpenAI know immediately, and advised them not to sign.
‘Over four hundred former Apple employees now working at OpenAI’
Another surprise: the complaint reveals the extent to which Apple employees have left the iPhone maker to work for OpenAI. Apple leverages this figure to paint a picture of 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’
Founded by former Apple employees, including Jony Ive, the company io was acquired by OpenAI last year in a $6.5 billion deal. Now, io is a defendant in this lawsuit, as Apple alleges that the firm used its industrial design techniques by misleading Apple’s partner into believing that it had Apple’s permission to carry out a ‘confidential metal-finishing technique,’ the complaint states. Apple also alleges that OpenAI approached a supplier using its confidential information about design and components related to power and batteries, even using ‘internal terminology’ to ask targeted questions that ‘only Apple-insiders would know to ask.’
‘Apple is left with no choice’
Though seemingly typical legal language, in this case, it appears that Apple may have tried to resolve the situation outside the courts first. The tech giant says that it first tried to contact OpenAI in February, raising its concerns, but OpenAI never responded. So far, OpenAI has only commented publicly via a statement shared on X on Friday, which reads: ‘We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.’
Frequently Asked Questions
What is the main allegation in Apple’s lawsuit against OpenAI?
Apple alleges that OpenAI orchestrated a coordinated effort to extract confidential trade secrets from current and former Apple employees, including accessing internal systems and coaching hires on how to avoid security procedures.
Who is Chang Liu in the context of this lawsuit?
Chang Liu is a former senior systems electrical engineer at Apple who later joined OpenAI. Apple claims he sent a message saying ‘LOL, I found out I can access the [network storage], so funny,’ after exploiting an authentication bug.
What does Apple say about OpenAI’s hardware business?
Apple claims OpenAI’s nascent hardware business, including a potential smartphone, is built on misappropriated trade secrets, describing it as ‘rotten to its core’ due to its reliance on stolen information.
How many former Apple employees now work at OpenAI?
The lawsuit states that over 400 former Apple employees are now working at OpenAI, which Apple uses to illustrate the potential scale of the alleged trade secret theft.
Did Apple try to resolve this outside of court?
Yes, Apple says it first contacted OpenAI in February to raise concerns, but OpenAI never responded, leaving Apple ‘with no choice’ but to file the lawsuit.
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