Apple sues OpenAI, alleging trade secret theft, says scheme was at every level. Apple says it s a shocking reversal for the two companies which entered into a high-profile partnership in 2024 when OpenAI was integrated into the company s operating system.
00:01:18.120Apple on Friday sued OpenAI in federal court in Northern California, alleging trade secret
00:01:22.100theft, saying that the artificial intelligence lab took the iPhone's marker, intellectual
00:01:27.800property in order to develop its own consumer hardware this much is clear however at every
00:01:33.380level from members of its technical staff to its chief trade secrets and confidential information
00:01:38.960the company said in a legal filing it's a shocking reversal for the two companies which entered into
00:01:45.240a high-profile partnership in 2024 when chad gpt was integrated into the iphone's operating system
00:01:50.220open ai co sam altman visited apple's headquarters for the announcement but relations between the
00:01:55.180Two companies have chilled since OpenAI announced plans to enter the hardware industry last year
00:02:01.100when it bought former Apple designer John Ives' startup called I.O. Product for $6.4 billion.
00:02:08.580Apple's updated version of its Sirius system, which is coming out this fall,
00:02:13.060is based on Google's Gemini models instead of ChadGBT.
00:02:16.060Most of Apple's allegations involve former employees who have interviewed who with or joined OpenAI.
00:02:21.880Apple alleges that OpenAI's chief hardware officer, Tank Tan, who is a former Apple vice president, has directed Apple employees interviewing at OpenAI to share Apple secrets as part of the interviewing process.
00:02:35.100He has directed job candidates still working at Apple to bring actual parts from Apple to their interviews for show and tell sessions in which he and his team at OpenAI can elicit still more Apple confidential information, Apple said in the filing.
00:02:51.240Tom, your thoughts on the story. So this is this is going to get really, really big.
00:02:54.880And the question is going to be who's got the biggest lobbyist or the biggest proxy balls with the Department of Justice and the Department of and the Federal Trade Commission.
00:03:07.980I'll tell you why. So on one hand, they're saying, oh, no, no, no.
00:03:11.880In an interview like I'm interviewing you, Pat. Hey, Pat, you know, you worked at Apple.
00:03:16.860Tell me about some of the projects you worked on. Did you really work on it?
00:03:35.920Well, the line gets crossed is, do you have any schematics or anything?
00:03:39.620And the allegations are people were encouraged to come to the meeting with printouts or other schematics or things to talk about what they did.
00:03:48.520And then all of a sudden, OpenAI allegedly had suddenly you're in an interview with 10 people, supposedly.
00:03:56.800So if that's what happened, that's bad.
00:03:58.640What's even worse is there are allegations of documentation that they said, hey, Vinny, Pat, you know, when you leave Apple, the following three things are going to happen on your laptop with the security team.
00:04:10.600If you do this, this and this, you can evade the security detection if you want to, you know, bring any of that with you.
00:06:27.960But then there have been documents and emails found where they told them exactly how to evade Apple security when you leave your job and come over here.
00:06:37.540And you're talking about, we don't know what the salaries are, but what Dana White was just talking about is just how big the war is for talent.
00:06:44.760And so this thing, this industrial espionage, this is going to be huge.
00:06:50.440The last time we've seen things this huge, you know, we had a giant one that happened in Formula One where Ferrari guys, McLaren guys, stole secrets from Ferrari guys.
00:07:00.060They told the Ferrari guys to go have them printed out at Kinko's when there was a Kinko's.
00:07:04.500And then the McLaren guys went in there and faked the ID and picked them up.
00:09:23.960Like, you know how in the military, there's Sergeant Major, General,
00:09:26.580Be My Little General, Brigadier General's a one-star,
00:09:29.420Major General's a two-star, Lieutenant General.
00:09:31.360Lieutenant General, three-star, and then General is a four-star, right?
00:09:33.920So this guy's one of the heavyweights there.
00:09:35.920Then he left Apple in 24, and he joins Johnny Ives' new hardware company, which OpenAI, you heard, just bought for $6.4 billion.
00:09:44.720OpenAI requires it, and so why is it important?
00:09:47.000OpenAI wants to build an AI device that could someday compete with the iPhone, and so Apple is suing because they're saying you're taking this away.
00:09:55.300So this guy is the main figurehead in this discussion, so it's interesting.
00:10:03.880It's kind of like what happened with when Jake Paul, I believe,
00:10:07.360recruited Dana White's former CFO that went to him.
00:10:11.400I don't know if you remember that or not.
00:10:12.780Jake Paul recruited him, Armenian guy.
00:13:51.780He was a White House AI advisor and had a career in public policy.
00:13:54.960So now they have a Washington guy on there as the head of strategic future at OpenAI.
00:14:00.640And Meta hired Dina Powell-McCormick, which was Trump and George W. Bush advisor on economic policy, and brought him in January as president and vice chairman of Meta Superintelligence.
00:14:11.980So they are also going out and getting soldiers from Washington to help them in the war when the Department of Justice, the Federal Trade Commissionā
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