Inside the Secret "Show and Tell": Why Apple is Suing
A billion dollar relationship between two big names in technology, Apple and OpenAI, has come to a sudden end. In a recent development in the US Court, Apple has charged the developer of ChatGPT with building up its new hardware business using stolen trade secrets.
Whereas everyone in the tech community is talking about the competition between the two firms, it is actually the strange revelations from the court papers that are fascinating.
The Shocking "Show and Tell" Accusations
According to the legal claims of Apple, OpenAI did not merely quietly recruit Apple engineers but allegedly launched an organized effort to steal Apple's hardware design from Apple's institution.
Two important former Apple employees have been named as the prime targets of the case by Apple: Tang Tan, formerly Apple's Vice President of Product Design and currently OpenAI's chief hardware officer, and Chang Liu, a senior systems electrical engineer.
In its lawsuit, Apple says that the recruitment process was accompanied by astonishing violations of confidentiality. The lawsuit states that Tang Tan directed job applicants that were active employees of Apple to smuggle unreleased hardware components out of Apple's facility.
These "actual parts" were used in OpenAI's interview process as part of "show and tell" sessions so that executives of OpenAI could examine Apple's coming hardware designs. As per the lawsuit, one shocked job applicant apparently stated that "we didn’t even know that we could take those from the office."
Missing Laptops and Security Exploits
Chang Liu's accusations from Apple also seem very serious. As per Apple's claim, when Chang left to join OpenAI, he made no attempt to return the Apple-issued work laptop. Apple also accuses him of using an authentication bug to hack their company's internal firewall and stealing numerous confidential documents relating to hardware from Apple’s internal network.
The timing of this massive data theft could not have been worse for OpenAI. OpenAI has been trying to move beyond software to consumer AI hardware products after its acquisition of io Products, a startup valued at around $6.5 billion which was founded by Apple’s former chief designer Jony Ive. Apple believes that OpenAI has used the stolen blueprints to develop a rival product to iPhone.
Missing Laptops and Security Exploits
Chang Liu's accusations from Apple also seem very serious. As per Apple's claim, when Chang left to join OpenAI, he made no attempt to return the Apple-issued work laptop. Apple also accuses him of using an authentication bug to hack their company's internal firewall and stealing numerous confidential documents relating to hardware from Apple’s internal network.
The timing of this massive data theft could not have been worse for OpenAI. OpenAI has been trying to move beyond software to consumer AI hardware products after its acquisition of io Products, a startup valued at around $6.5 billion which was founded by Apple’s former chief designer Jony Ive. Apple believes that OpenAI has used the stolen blueprints to develop a rival product to iPhone.
The Corporate Fallout
According to OpenAI, they have reviewed the complaint, with Drew Pusateri from their office asserting that they are not interested in trade secrets of other firms. This is coming at a time when OpenAI has more than 400 employees who have been employed by the tech giant Apple in the past.
At the moment, Apple is seeking monetary compensation as well as an injunction which will bar OpenAI from using their intellectual property rights.
