Apple is stepping up the pressure on OpenAI in a trade secret lawsuit. The company says it has new evidence that a former Apple engineer took confidential information with him to OpenAI. Apple also accuses its opponent of attempting to destroy evidence.
The case centers largely on Chang Liu, an engineer who left Apple for OpenAI in January. According to Apple, Liu still had access to his former employer’s data after his departure. The company further alleges that he downloaded a confidential circuit diagram and subsequently used it at his new employer.
These allegations are outlined in new court documents reported by Bloomberg . Apple is seeking permission to expedite the discovery process to unearth more information before the actual trial begins. OpenAI, on the other hand, wants the court to dismiss the case.
MacBook yields new evidence
A MacBook that Apple had provided to Liu is now playing a key role in the dispute. According to Apple, OpenAI did not return the laptop until several weeks later. Apple says an initial forensic analysis indicates that Liu continued to have access to external cloud storage used by Apple after he left.
Apple draws further conclusions from this. Communications were also reportedly found on the laptop in which Liu gave an OpenAI colleague instructions on how to delete evidence. That colleague allegedly confirmed that he would follow the instructions.
With this, Apple is attempting to substantiate its earlier allegation that this is not solely the act of a single former employee. The company suspects OpenAI of encouraging departing Apple employees to take information about unannounced products with them. This is said to include, among other things, technical drawings, components, and other development information.
Apple also points to a striking similarity in the development environment. Liu is said to have used a tool at OpenAI with the same name as an internal Apple engineering application. Whether this actually involves the same software or technology is not clear from the court documents.
OpenAI points the finger at Apple
OpenAI disputes Apple’s account. The company asserts that documents Liu accessed after his departure had nothing to do with his work at OpenAI. He allegedly helped former colleagues with Apple-related work and still had access to the relevant data for that purpose.
According to OpenAI, a significant part of the problem therefore lies with Apple itself. The company allegedly failed to adequately restrict former employees’ access to internal and external systems. In the court documents, OpenAI cites sloppy procedures regarding data security and the handling of departing employees.
OpenAI has also published excerpts from text messages that, according to the company, support this explanation. In addition, it asserts that standard recruitment procedures were followed when hiring Apple employees.
At the same time, the AI developer warns of the consequences if the court grants Apple’s request. According to OpenAI, a broad ban on the use of knowledge taken by former Apple employees could limit employees’ freedom to change employers.
Hardware makes employee transitions more sensitive
The dispute is unfolding against the backdrop of OpenAI’s growing ambitions in the hardware sector. More than 400 former Apple employees are reportedly now working at the company. In particular, the arrival of former Apple designer Jony Ive has altered the competitive landscape between the two companies.
OpenAI is collaborating with Ive on its own consumer hardware. According to earlier reports by Bloomberg, one of the first products will be a compact, round smart speaker with moving parts.
This lends added significance to the question of what knowledge former Apple employees are permitted to use at their new employer. Whereas Apple and OpenAI were previously primarily partners in integrating ChatGPT into Apple products, both companies are now also competing in the same arena.
In addition to seeking damages, Apple wants OpenAI to cease its alleged use of Apple’s trade secrets and to destroy any confidential material it may have obtained. The company has also asked the court to impose restrictions on OpenAI while the lawsuit is pending. Arguments regarding that request will be heard on October 1.