Apple Sues OpenAI for Stealing Trade Secrets to Build AI Hardware
Apple sues OpenAI, accuses ex-employees of stealing trade secrets
Apple has filed a lawsuit accusing OpenAI of orchestrating a scheme to steal confidential trade secrets for its new AI hardware device. The complaint alleges that former Apple employees Tang Tan and Chang Liu directed current staff to leak unreleased designs, manufacturing processes, and supplier details. Apple claims OpenAI leadership fostered a culture of theft, using stolen information to trick suppliers and bypass security protocols, ultimately seeking an injunction and damages to protect its innovations.
OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.
- joshstrange
Some pretty damning stuff:
> 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.
> Apple says it discovered a pattern of OpenAI recruits emailing themselves confidential information when leaving Apple, including Tan.
> 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.
> 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.
Non-competes and the like are gross but what's described here isn't just "bring your expertise to OpenAI" it's "here is how to steal secrets on your way out" which is even grosser.
- Lio
OpenAI is a company built on copyright violation.
That means it’s in the corporate DNA to treat laws as things for little people.
Apple have deep enough pockets that they can actually sue OpenAI but I bet OpenAI are surprised they got caught.
Now ask yourself, would the Codex agents on your machine ever over step legal boundaries? Would OpenAI ever make use of data you, voluntarily, send to their servers?
If they did could your company afford to sue OpenAI and would it still be too late to save the business?
- jtfrench
Until the industry addresses the Original Sin of Generative AI (and the ascendance of Thievery Corporations), we should expect more and more of this. So far, theft has been rewarded. As long as you make enough money, people seem to be okay with ignoring long-lasting impacts of intellectual theft. As long as you become King of the Cannibals, it seems many are happy to remember you as King and not as the Cannibal.
- impulser_
This is basically the end of OpenAI hardware. This is by far worst than the Waymo vs. Uber lawsuit which killed the Uber self driving project.
Also if you are a business using OpenAI models, I would highly suggest you do not because they are most likely looking at your code and IP.
- Robdel12
OpenAI is about to get ROCKED on this. From this report, this looks open and shut. Apple has basically infinite money and incredible lawyers. Not sure what OpenAI can counter with unless they have clear, hard evidence this hasn’t been happening.
- xnx
A company that behaves like this in one area, cannot be trusted in any area. Any enterprise that endorses/allows OpenAI products to be used is taking a big risk.
- generj
Apple kindly wanted to make OpenAI add in some legal liabilities to their IPO filling.
Discovery is going to be great fun (for Apple).
- tiahura
Copy of the Complaint.
https://storage.courtlistener.com/recap/gov.uscourts.cand.47...
9. In the months before he left Apple, Mr. Tan met with OpenAI or its collaborators and
discussed meetings with a key Apple supplier. He began emailing himself information about Apple’s
suppliers and internal summaries of the consumer electronics industry. And today, when interviewing
Apple employees for jobs at OpenAI, Mr. Tan uses Apple’s confidential information to gain access
to even more insider knowledge. He has used an Apple internal project codename to ask, “What’s the
plan[?]” for an unannounced Apple product. He has directed job candidates still working for Apple
to bring “Actual parts” from Apple to their interviews for “show and tell” sessions in which he and
his team at OpenAI can elicit still more Apple confidential information. These directions to bring
Apple’s parts to OpenAI job interviews surprised at least one of the candidates, who commented that
he “didn’t even know we could take those from the office.”
10. This is part of OpenAI’s strategy to extract Apple’s confidential information. OpenAI
has been instructing Apple employees to bring “CAD/design artifacts” and “prototypes” to their
interviews and to divulge details about their work such as “subsystem and component selection,” the
“tools or methodologies you use for system integration, such as CAD software, simulation tools,”
and “Vendor selection and communication/collaboration with vendors.”
11. OpenAI also instru […]
- html5cat
Interesting how Tang Yew Tan worked at Apple for 25 years (!!) and then threw it all out for this.
- jakeinspace
Apple has all the money in the world to take this to court, I don't see why they'd accept a settlement. The discovery process alone could honestly destroy OpenAI by making investors and employees nervous enough to look elsewhere. Would be especially interesting if this crosses into criminal territory, especially if there's solid proof of upper management or executives being aware.