Apple presents ‘shocking evidence’ in OpenAI lawsuit, accuses ex-employee of stealing trade secrets

Apple has filed new evidence in its lawsuit against OpenAI, alleging that a former employee used stolen trade secrets to benefit the AI startup and attempted to destroy evidence. The filing, made public this week, comes after the legal counsel for Chang Liu, a former Apple engineer now working at OpenAI, handed over Liu’s old Apple work laptop for investigation. Apple claims the laptop contains what it calls “shocking evidence” that Liu used a confidential Apple circuit schematic in his work at OpenAI, along with a tool that shares a name with an internal Apple engineering application.

Background of the lawsuit and new allegations

Apple filed the lawsuit in late 2024, accusing Liu of breaching his employment agreement and stealing trade secrets when he left to join OpenAI. The new filing adds that OpenAI was “well-aware” of Liu’s access to Apple data and that Liu enlisted an OpenAI colleague, Yu-Ting Peng, to help destroy evidence in June when he learned Apple was investigating him. The laptop, which Apple says represents “the very limited information Defendants provided so far (and only after weeks of delay),” is central to the company’s argument that it is not on a “fishing expedition” but that its trade secrets are being used and evidence is being destroyed.

Apple is seeking a preliminary injunction to block OpenAI from working on hardware based on Apple’s technology while the case is ongoing, as well as expedited discovery to fast-track evidence gathering. The company also alleges that more than 400 former Apple employees now work at OpenAI, raising concerns about broader intellectual property risks.

OpenAI’s defense and counterarguments

OpenAI has previously defended Liu, stating that he only accessed Apple files after leaving the company to help former colleagues who asked for his assistance. In a blog post earlier this month, OpenAI argued that Apple is trying to shift blame to “residual access,” a common issue caused by Apple’s failure to properly manage system access when employees leave. However, Apple contends that Liu exploited a “rare, previously unknown authentication bug” to maintain access, which it says undermines OpenAI’s explanation.

The legal battle highlights the intense competition for AI talent and the lengths companies will go to protect proprietary technology. It also raises questions about how tech giants handle intellectual property when employees move between rivals.

Implications for the tech industry

This case could set a precedent for how courts treat trade secret violations involving AI companies, particularly when employees move between major players. If Apple succeeds in obtaining an injunction, it could slow OpenAI’s hardware development efforts and deter other employees from taking sensitive information to competitors. The outcome may also influence how companies structure employee agreements and manage access controls to prevent similar disputes.

Conclusion

Apple’s latest filing adds a new layer of complexity to its legal battle with OpenAI, presenting evidence that could strengthen its case for an injunction. As the case progresses, the tech industry will be watching closely to see how courts balance intellectual property rights with the mobility of talent in the AI sector. Bitcoin World has reached out to OpenAI for comment on the new allegations but has not yet received a response.

FAQs

Q1: What is the core allegation in Apple’s lawsuit against OpenAI?
Apple alleges that former employee Chang Liu stole trade secrets and used them to benefit OpenAI, including using a confidential circuit schematic and an internal engineering tool. Apple also claims Liu attempted to destroy evidence.

Q2: What does Apple want from the court?
Apple is seeking a preliminary injunction to block OpenAI from working on hardware based on Apple’s technology, as well as expedited discovery to speed up evidence gathering.

Q3: How has OpenAI responded to the allegations?
OpenAI has defended Liu, saying he only accessed Apple files to help former colleagues and that residual access is a common issue caused by Apple’s failure to manage system access properly. Apple disputes this, claiming Liu exploited a rare authentication bug.