Max Headroom 
Apple today accused OpenAI of stealing Apple trade secrets and intellectual property in its effort to develop an AI hardware device.
In a lawsuit filed with the Northern District of California, Apple said it uncovered evidence of a months-long scheme to steal confidential information. Apple says OpenAI hardware lead and former Apple designer Tang Tan and former electrical engineer Chang Liu directed Apple employees interviewing with OpenAI to provide details on unreleased devices, components, manufacturing processes, and vendor relationships.
In a statement to MacRumors, Apple said it is suing to protect the hard work of its employees.
At Apple, our teams are constantly developing breakthrough technologies to create the best products and services in the world, and protecting their work and intellectual property is something we take very seriously. Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products. We will always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so.
Tan is accused of using his internal knowledge of Apple’s exit procedures to help employees covertly deliver information, and giving OpenAI key information about Apple suppliers that has benefited OpenAI’s work on an AI device. From the lawsuit:
OpenAI also instructs new hires on how to avoid scrutiny when they leave Apple. For example, Mr. Tan warns them not to tell Apple that they have taken jobs at OpenAI, so they can stay at Apple as long as they can. After his own departure, Mr. Tan improperly retained or obtained an internal Apple managers’ document marked “Need to Know” that describes security procedures for employee departures. Messages left on Apple-issued work devices show that Mr. Tan and his OpenAI colleagues have been sharing this document with new hires before they give notice to Apple of their departures, previewing Apple’s security protocols. Unsurprisingly, Apple’s investigation has found a pattern by employees who depart for OpenAI of taking steps to evade the security processes intended to protect Apple’s confidential information.
Apple says it discovered a pattern of OpenAI recruits emailing themselves confidential information when leaving Apple, including Tan. Others were “improperly using their knowledge of Apple’s confidential and trade secret information to assist OpenAI in developing hardware.” OpenAI apparently used confidential Apple hardware information when approaching Apple suppliers, and tricked one company into using a “specific trade secret metal-finishing technique” for an OpenAI device by claiming it had Apple’s permission to do so.
Apple says evidence on an employee’s work-issued device indicates Tan instructed her to “bring some parts” she worked on to an interview, suggesting she show OpenAI batteries, SIPs, logic boards, and other hardware. It was not an isolated incident, and Apple claims several OpenAI interviewees were asked to do the same.
Liu allegedly kept an Apple-issued laptop after departing the company and exploited a vulnerability to download dozens of confidential Apple documents while he was working at OpenAI. He also maintained a relationship with Yu-Ting “Alyssa” Peng, an Apple employee who continued to give him updates on Apple’s projects, vendor decisions, and engineering details. When Liu learned he still had access to Apple’s systems, he texted Peng “LOL, I found out I can access the [network storage], so funny.”
Apple accuses OpenAI leadership of creating a culture of hardware theft, and says OpenAI’s hardware business is “rotten to its core” because of its reliance on information stolen from Apple.
This is the tip of the iceberg. Apple lacks visibility into what’s been happening behind closed doors at OpenAI, where such misconduct is normalized and exemplified by leadership. This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information. As a natural result, OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.
Apple attempted to contact OpenAI in February when it first learned of the potential theft, but OpenAI did not respond, leading Apple to investigate further. Apple claims OpenAI is under pressure to debut a hardware device, which has led to the company taking shortcuts instead of investing in legitimate development. “OpenAI has turned to trade secret misappropriation to free-ride off Apple’s decades of innovation,” reads the lawsuit.
Former Apple design chief and OpenAI designer Jony Ive is not named in the suit, but it does target io Products, which OpenAI acquired. While OpenAI CEO Altman is referenced, he isn’t named as a defendant, and Apple doesn’t suggest Ive or Altman were involved. Apple also does not appear to be targeting the ongoing OpenAI recruitment of Apple staff, though the lawsuit mentions that more than 400 former Apple employees now work at OpenAI.
Apple mentions its ongoing partnership with OpenAI for Siri ChatGPT integration, but only to say that the agreement is not an issue in the lawsuit.
Prior rumors suggest the relationship between Apple and OpenAI has been souring, with OpenAI allegedly considering a lawsuit against Apple because the integration failed to live up to OpenAI’s expectations and Apple’s promises.
In its trade secret theft lawsuit, Apple is seeking an injunction to stop OpenAI from possessing, using, or disclosing its technologies as well as damages “in an amount to be determined at trial.” It is also suing Tan and Liu for breach of contract for violating their agreements with Apple.
This article, “Apple Sues OpenAI for Stealing Trade Secrets to Build AI Hardware” first appeared on MacRumors.com
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