The wildest allegations in Apple’s trade secrets lawsuit against OpenAI
Apple’s trade secrets lawsuit against OpenAI contains allegations that range from employees joking about unauthorized access to Apple’s systems to claims that job candidates were asked to bring Apple hardware to interviews. Here are the complaint’s most eye-catching claims.
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. But what’s perhaps most striking is how casually the alleged misconduct is described, including one message that reads, “LOL, I found out I can access the [network storage], so funny.”
The 41-page complaint , which was filed on Friday, is filled with unusually detailed allegations, like this and others. Here are some that stood out the most to us.
“Normalized and exemplified by leadership.” With this description of OpenAI, 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.
“Rotten to its core.” Leave it to Apple to work a rotten fruit analogy into its criticism of OpenAI’s behavior in this case. 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.
“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. In discovery, corporate documents and communications, including texts and emails, are obtained, potentially uncovering other examples of this kind of behavior at OpenAI. “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, processes, and know-how related to metal-finishing.” 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.”
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Key takeaways
- The dispute between Apple and OpenAI highlights the importance of trade secret protection in the tech sector.
- The case may influence how Brazilian companies approach ethics and compliance in their operations.
- The convergence between software and hardware in the field of AI may bring new challenges and opportunities for the Brazilian tech ecosystem.
Editorial analysis
The legal dispute between Apple and OpenAI raises crucial questions about the protection of trade secrets in an increasingly competitive and interconnected sector. For Brazil, where the startup and technology ecosystem is expanding, this situation serves as a warning about the importance of safeguarding sensitive information and the need for a corporate culture that prioritizes ethics and legal compliance. The allegation that OpenAI's culture may have encouraged inappropriate behaviors suggests that growing companies must be vigilant about team formation and oversight of their internal practices.
Moreover, the possibility that OpenAI is developing a hardware device to compete with the iPhone, allegedly using Apple's trade secrets, highlights the growing convergence between software and hardware in the field of artificial intelligence. This could have significant implications for Brazilian companies exploring AI, as the protection of intellectual property becomes even more critical in an environment where rapid innovation can be both an opportunity and a threat.
The unfolding of this lawsuit may not only bring to light more information about OpenAI's practices but also about the behavior of other companies in the sector. The discovery process could reveal a broader pattern of conduct that may impact the reputation of tech firms. For Brazil, this could mean a review of compliance practices and a reflection on how local companies are preparing to avoid similar situations.
Finally, OpenAI's response to these allegations and how the company manages its image and operations moving forward will be a crucial point to watch. How tech companies handle issues of ethics and compliance can influence not only their survival but also market and consumer trust, especially in a dynamic environment like Brazil.
What this coverage includes
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- Editorial framing about relevance, impact, and likely next developments.
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