Three things that former iPhone engineer Chang Liu ‘took’ when he left the company as per Apple’s 40-page lawsuit against ChatGPT-maker OpenAI

Apple has accused former iPhone engineer Chang Liu of leaving the company with more than just experience when he joined the hardware division at OpenAI. According to a report by Bloomberg, in a 40-page lawsuit filed, Apple claims Liu departed with three things that now sit at the center of the legal battle. Apple argues the episode illustrates a “systematic effort” by OpenAI to acquire and use its confidential information. The lawsuit alleges prospective hires were encouraged to study Apple materials before interviews and even bring hardware prototypes to OpenAI offices. OpenAI responded: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”

The unreturned MacBook

Apple alleges that Liu failed to return a company-issued MacBook, which consisted of some sensitive internal files. The device is cited as one of the key assets Apple says was improperly retained after his departure.

An inside relationship

Along with an unreturned MacBook, the lawsuit also points to Liu’s close relationship with an Apple employee Alyssa Peng, who allegedly continued sharing internal information after his exit. Peng later joined OpenAI’s hardware division in April, part of a wave of more than 400 Apple employees recruited by the AI startup.

Knowledge of a software bug

Most significantly, Apple claims Liu exploited knowledge of a software bug that gave him ongoing access to internal file servers. In messages cited by Apple, Liu wrote: “LOL, I found out I can access the [network storage], so funny.” He allegedly used this access to download presentations, hardware designs, manufacturing details, and testing procedures while already employed at OpenAI.

Apple’s allegations against OpenAI

According to the lawsuit, Apple alleges that OpenAI improperly obtained its confidential trade secrets while building its consumer AI hardware efforts. The complaint claims OpenAI hired several former Apple employees, including senior hardware executives, and alleges that confidential information related to Apple’s hardware development was used to accelerate competing products.The lawsuit alleges that OpenAI encouraged job candidates during interviews to bring physical Apple prototypes, share proprietary manufacturing processes, and help the AI company tap into Apple’s closely guarded supplier network.Apple claims these stolen materials were used to jumpstart OpenAI’s own secret consumer hardware projects. The lawsuit explicitly names two former Apple employees alongside OpenAI and an AI device startup called io Products Inc.OpenAI has responded to the lawsuit with Drew Pusateri, OpenAI’s Director of Strategic Communications, taking to X (formerly Twitter) to flatly deny the allegations: “We have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere”.