GoKawiilApple’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.
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.
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.
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 Peng’s Apple-issued work computer.
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 Peng’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 Peng’s Apple-issued work laptop.
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 Peng’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.
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 on 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.
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 on 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. The complaint alleges that in addition to helping OpenAI job candidates avoid Apple’s security procedures, if Apple asked departing employees to sign anything at an exit interview, they should let OpenAI know immediately and advised them not to sign.
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