Apple Sues OpenAI for Alleged Trade Secret Theft

Tech giant Apple has filed a lawsuit against AI firm OpenAI, accusing it of deliberately soliciting and stealing confidential information from current and former employees. The lawsuit alleges that OpenAI’s actions are part of a systematic effort to acquire sensitive data about unreleased technologies, processes, and products developed by Apple.

The complaint highlights the case of Chang Liu, a former senior electrical engineer at Apple who allegedly accessed Apple’s cloud file storage using a bug he discovered on his work-issued laptop. After leaving Apple and joining OpenAI, Liu reportedly celebrated the exploit in a message to a colleague still employed by Apple: ‘LOL, I found out I can access the [network storage], so funny.’

Liu is accused of accessing and downloading dozens of confidential files from Apple’s network while working on hardware projects for OpenAI. Many of these files were labeled as confidential, and it is alleged that Liu used this information to inform his work at OpenAI.

Tang Tan, an Apple veteran who worked on iPhone and Apple Watch development before joining OpenAI as chief hardware officer, is also named in the complaint. As part of his role at io Products – a company co-founded by Tan and Jony Ive (Apple’s former chief design officer) to serve as OpenAI’s dedicated hardware vehicle – it is alleged that Tan used internal codenames from Apple to elicit more information from potential job candidates who currently work for Apple.

Tan allegedly instructed these candidates to bring ‘actual parts’ (such as batteries, logic boards, and SIPs) for a ‘show and tell,’ suggesting that he was using this tactic to gather sensitive data. Furthermore, it is claimed that Tan circulated an internal offboarding document from Apple – either retained or obtained during his time at the company – to teach new OpenAI hires how to bypass exit security checks.

The lawsuit also accuses OpenAI of approaching trusted partners with confidential information about Apple’s technologies and products as they developed their own hardware device. One partner was allegedly shown a trade secret metal-finishing technique, which it is claimed was presented under false pretenses that the partner had permission from Apple to view this information.

Apple has accused OpenAI of misusing its internal codenames to gather sensitive data about unreleased technologies and products. The company claims that over 400 former employees are now employed by OpenAI – a significant loss for Apple, particularly given their current partnership with OpenAI on integrating ChatGPT into Apple’s products.

The lawsuit seeks to stop defendants from possessing or using Apple trade secrets, as well as the preservation and return of any materials taken. It also demands damages for losses caused by trade secret misappropriation and breach of contract. The case marks a significant escalation in tensions between two major players in the tech industry.