A 41-page lawsuit filed on Friday claims OpenAI systematically stole Apple trade secrets, including a text message where an employee joked, “LOL, I found out I can access the [network storage], so funny.”
Allegations of culture and leadership
The complaint does not paint this as the work of isolated bad actors. Apple argues the behaviour is “normalized and exemplified by leadership”. The company insists misconduct like this is part of OpenAI’s culture and comes from the top.
Apple also uses a specific analogy to describe OpenAI’s current position. The lawsuit states the AI model maker is “rotten to its core”. The iPhone rival is reportedly working on a hardware device to challenge the phone, but Apple wants to stress that development relies on stolen secrets. The text says OpenAI’s nascent hardware business now rests on the shakiest of foundations.
The scale of the theft
Apple suggests the current list of allegations is only a fraction of what will be uncovered. In discovery, corporate documents and communications, including texts and emails, will be obtained. The complaint states discovery will expose that misappropriation has been occurring on a scale many times greater than the several instances described.
Specific messages and methods
One message from Chang Liu, a former senior systems electrical engineer, was sent to Yu-Ting “Alyssa” Peng. Liu allegedly accessed Apple’s systems by exploiting an authentication bug from Peng’s Apple-issued work computer. Peng later left to join OpenAI herself but is not a defendant in the lawsuit. Peng allegedly replied to the message, “I’m ready.”
Liu allegedly also texted, “I still have another computer,” within hours of leaving Apple. He referred to another Apple computer he planned to use to access confidential information. Apple discovered the message on Peng’s work laptop.
Parts for interviews
Apple alleges OpenAI job candidates were directed by chief hardware officer Tang Yew Tan to bring actual parts from Apple to their interviews. Tan spent 24 years at Apple, most recently as VP of product design for iPhone and Apple Watch. One candidate was surprised by the request, saying he did not even realize that Apple parts could be taken out of the office.
Apple also says employees were instructed to bring CAD/design artifacts and prototypes to interviews.
Security procedures
Apple alleges OpenAI coached departing employees on how to evade security procedures to reduce the chance their alleged trade secret theft would be caught. The complaint claims OpenAI circulated an internal Apple document bearing a “Need to know” designation to new hires with details on how to avoid the dreaded walkout. This would remove them from Apple after giving notice instead of letting them continue to work for the typical two weeks. Two weeks would allow more time to access confidential information.
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.
Former employees and io
The complaint reveals the extent to which Apple employees have left the iPhone maker to work for OpenAI. It notes that over four hundred former Apple employees now work at OpenAI. Apple states it is not surprising that certain OpenAI personnel have knowledge of Apple’s confidential and proprietary information. But OpenAI has resorted to exploiting this confidential information.
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. Apple alleges the firm used its industrial design techniques by misleading Apple’s partner into believing it had Apple’s permission to carry out a confidential metal-finishing technique.
Apple also alleges OpenAI approached a supplier using confidential information about design and components related to power and batteries. The company used internal terminology to ask targeted questions that only Apple-insiders would know to ask.
Legal action
Apple is left with no choice. The tech giant says it first tried to contact OpenAI in February, raising its concerns. OpenAI never responded.
OpenAI has only commented publicly via a statement shared on X on Friday. It reads: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
