Apple Files ‘Shocking Evidence’ in OpenAI Trade Secret Case

Apple just dropped what it calls “shocking evidence” in its lawsuit against a former employee now working at OpenAI. And the allegations are serious.

Let me break down what is happening.

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The Case

Apple is suing former employee Chang Liu, who now works at OpenAI. The company alleges that Liu stole trade secrets for OpenAI’s benefit.

Apple is seeking a preliminary injunction, a court order that would block OpenAI from working on hardware based on Apple’s technology while the case is ongoing. The company is also seeking expedited discovery, a fast-tracked process for gathering evidence, since more former employees may also be implicated.

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The New Evidence

The new details emerged after Liu’s legal counsel handed over Liu’s old Apple work laptop for investigation earlier this month.

Apple now alleges that Liu used a confidential Apple circuit schematic in his work at OpenAI, as well as a tool that shares a name with an internal Apple engineering application.

“The MacBook represents the very limited information Defendants provided so far and only after weeks of delay, and shows Apple is not conducting ‘fishing expeditions’ but that its trade secrets are being used and evidence is being destroyed.”

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The OpenAI Connection

Apple claims that OpenAI was “well-aware” of Liu’s access to Apple data. The company alleges that Liu enlisted OpenAI colleague Yu-Ting Peng to help destroy evidence in June when he learned that Apple was investigating him.

While this new evidence is redacted from public view, past filings from Apple have included text messages from Liu, which he punctuated with laughing emojis, showing he was aware that he still had access to Apple files.

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OpenAI’s Defense

OpenAI has previously defended Liu by saying that he only accessed Apple files after he stopped working there in order to help former colleagues who asked for his assistance.

“Apple now tries to shift the blame to ‘residual access,’ but they also don’t disclose that this is a common issue with Apple which is caused by them failing to properly manage system access when people leave.”

But Apple claims that Liu had continued access because he “exploited a rare, previously unknown authentication bug.”

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The Bigger Picture

According to Apple’s initial filing, more than 400 former Apple employees now work at OpenAI. That is a significant talent drain.

OpenAI is also navigating a wave of lawsuits over the Tumbler Ridge shooting, with the latest complaints accusing the company of aiding and abetting the attack. Read the full breakdown here.

Apple is trying to protect its trade secrets. OpenAI is trying to hire top talent. The tension between these two companies is not going away.

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The Bottom Line

Apple filed new evidence in its lawsuit against former employee Chang Liu, now at OpenAI. Apple alleges Liu used confidential schematics and an internal Apple tool in his work at OpenAI. The company also claims OpenAI was aware and helped destroy evidence. OpenAI denies the allegations.