Tech
The wildest allegations in Apple’s trade secrets lawsuit against OpenAI
Apple’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.
- “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.
- “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.
- “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 his former colleague’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 his former colleague’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.
- 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 of 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. In addition to helping OpenAI job candidates avoid Apple’s security procedures, the complaint alleges that if Apple asked departing employees to sign anything at an exit interview, they should let OpenAI know immediately, and advised them not to sign.
- “Over four hundred former Apple employees now working at OpenAI.” Another surprise: the complaint reveals the extent to which Apple employees have left the iPhone maker to work for OpenAI. Apple leverages this figure to paint a picture of the potential scale of the problem, noting that “it is not surprising that certain OpenAI personnel have knowledge of Apple’s confidential and proprietary information, which they are obligated to keep confidential. But OpenAI has resorted to exploiting this confidential information…”
- “io…access, exploited and used Apple’s secret, proprietary industrial design techniques, processes, and know-how related to metal-finishing.” Founded by former Apple employees, including Jony Ive, the company io was acquired by OpenAI last year in a $6.5 billion deal. Now, io is a defendant in this lawsuit, as Apple alleges that the firm used its industrial design techniques by misleading Apple’s partner into believing that it had Apple’s permission to carry out a “confidential metal-finishing technique,” the complaint states. Apple also alleges that OpenAI approached a supplier using its confidential information about design and components related to power and batteries, even using “internal terminology” to ask targeted questions that “only Apple-insiders would know to ask.”)
- “Apple is left with no choice.” Though seemingly typical legal language, in this case, it appears that Apple may have tried to resolve the situation outside the courts first. The tech giant says that it first tried to contact OpenAI in February, raising its concerns, but OpenAI never responded.
So far, OpenAI has only commented publicly via a statement shared on X on Friday, which reads: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
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Tech
Meta Removes Muse Image Instagram Feature After Consent Backlash
Meta scrapped a Muse Image feature days after launch following backlash over consent, privacy, and the use of public Instagram photos.
The post Meta Removes Muse Image Instagram Feature After Consent Backlash appeared first on TechRepublic.
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Tech
Microsoft Study Finds AI Coding Agents Lift Pull Requests by 24%
A Microsoft study found command-line AI coding agents were linked to more merged pull requests, but adoption and review capacity shaped the results.
The post Microsoft Study Finds AI Coding Agents Lift Pull Requests by 24% appeared first on TechRepublic.
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Tech
Sam Altman’s space data center trash talk is what most experts already believe
Sam Altman and Elon Musk traded barbed social media posts over the weekend, drawing new attention to the gap between vision and reality for the space compute business.
Responding to Musk accusing him of being a scammer, Altman said, “homeboy you’re the one sellling [sic] public market investors on short-term space datacenters.”
Setting aside “homeboy,” Altman is saying what a lot of experts have concluded but public market investors seem to be ignoring: Space data centers are not going to be a serious business anytime soon.
SpaceX’s plans to launch a fleet of orbital data centers to perform AI inference tasks are the main driver behind the company’s two-trillion-dollar valuation. Bullish analysts say that the potential for that processing power to fuel SpaceXAI’s models or act as an orbital neocloud are unprecedented in the AI boom.
But when you talk to subject-matter experts — whether it’s the entrepreneurs behind other space data center start-ups, the team at Google developing that company’s orbital compute project, or engineers who have done the numbers for fun — you find the same answer: This isn’t going to make a big dent until we have much cheaper rockets and the ability to produce high-powered satellites at low cost, en masse.
Musk’s answer to this is easy to predict: Starship, SpaceX’s huge new rocket, is expected to make its thirteenth test flight as soon as July 16. If Musk’s team can get that vehicle to the point where it flies again and again, the data center business case could close.
But even if the company successfully recovers both stages of the rocket on this test flight, operational reusable flight will still likely be years away, and space data center launches will likely take a back seat to SpaceX’s commitments to NASA and to building out its own Starlink network.
SpaceX also conceded during its IPO road show that Starship may not be fully reusable in the near-term and will need to throw each of its second stages during each launch, which would put a kibosh on economical space data centers.
That’s why Musk’s rejoinder—”we start flying them next year”—falls a bit flat. There’s no doubt that SpaceX could launch a satellite equipped for high-speed data processing next year, but the big question is when it will be able to launch and manufacture them at scale. And that’s likely a question for the 2030s.
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