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Apple alleges ex-employee stole data for OpenAI

Created at 1 Sep · 12:31 AM1 source↑ Market-relevant
IN SHORT

Apple has filed new evidence in its lawsuit against OpenAI, alleging a former employee, Chang Liu, stole trade secrets, including circuit schematics, and used them for OpenAI's benefit. Apple claims Liu exploited an authentication bug and enlisted a colleague to destroy evidence.

Key Numbers

400+former Apple employees now at OpenAI

Who's Involved

Apple
company alleging trade secret theft
OpenAI
company accused of benefiting from stolen trade secrets
Chang Liu
former Apple employee accused of stealing data
Yu-Ting Peng
OpenAI colleague allegedly enlisted to destroy evidence
Apple alleges ex-employee stole data for OpenAI

↳ Why This Matters

This case highlights the intense competition and legal scrutiny surrounding artificial intelligence development, particularly concerning intellectual property theft and the movement of talent between major tech companies.

Key facts

  • Apple alleges former employee Chang Liu stole trade secrets and used them for OpenAI.
  • The company claims Liu used a confidential circuit schematic and an internal engineering tool.
  • Apple alleges Liu exploited an authentication bug to maintain access to company data.
  • Liu is accused of enlisting an OpenAI colleague to destroy evidence.
  • Apple is seeking a preliminary injunction to prevent OpenAI from using its technology.

Apple has presented what it describes as "shocking evidence" in its lawsuit against OpenAI, alleging that former employee Chang Liu stole trade secrets and used them to benefit OpenAI. The new details emerged after Liu's legal counsel provided his old Apple work laptop for investigation.

Apple claims Liu utilized a confidential circuit schematic and a tool that shares a name with an internal Apple engineering application. The company asserts that OpenAI was aware of Liu's access to Apple data and that Liu enlisted OpenAI colleague Yu-Ting Peng to help destroy evidence in June when Apple began its investigation.

"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," the filing states. Past filings included text messages from Liu indicating he was aware of his continued access to Apple files.

OpenAI has previously argued that Liu only accessed Apple files after his departure to assist former colleagues, attributing the issue to Apple's system access management. However, Apple counters that Liu maintained access by exploiting a "rare, previously unknown authentication bug."

Apple is seeking a preliminary injunction to prevent OpenAI from developing hardware based on Apple's technology during the ongoing case, along with expedited discovery. The company alleges that more than 400 former Apple employees now work at OpenAI.

Frequently asked questions

Apple alleges that Chang Liu, a former employee, stole trade secrets, including circuit schematics and internal tools, and used them for his work at OpenAI.

Apple claims Liu exploited a rare, previously unknown authentication bug to continue accessing company data after his departure.

Apple is seeking a preliminary injunction to block OpenAI from using its technology and is requesting expedited discovery.

According to Apple's initial filing, more than 400 former Apple employees now work at OpenAI.

What Happens Next

01Apple seeks a preliminary injunction against OpenAI.
02Apple seeks expedited discovery in the case.

How It Developed

Apple filed new evidence in its lawsuit against OpenAI.
Apple alleges former employee Chang Liu stole trade secrets.
Liu allegedly used confidential circuit schematics and an internal tool at OpenAI.
Apple claims Liu exploited an authentication bug for continued access.
Liu allegedly enlisted OpenAI colleague Yu-Ting Peng to destroy evidence.
Apple seeks a preliminary injunction to block OpenAI from using its technology.
Apple states over 400 former employees now work at OpenAI.

Sources

T1
Apple shares ‘shocking evidence’ against former employee accused of stealing company data for OpenAITechCrunch

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